Clinton Talks 2016, Stands by Benghazi Testimony

In her final television interview as Secretary of State, Hillary Clinton told ABC's Cynthia McFadden that she is "flattered and honored" at the intense interest in whether she might run for president in 2016.

But Clinton maintained that right now she's "not focused" on a presidential campaign; instead she said she wants to return to a "normal" life when she steps down from office on Friday.

Watch Cynthia McFadden's full interview with Secretary of State Hillary Clinton on "Nightline" tonight at 12:35 a.m. ET

Clinton's first order of business, she said, will be sleep.

"I hope I get to sleep in," she told McFadden with a laugh. "It will be the first time in many years. I have no office to go to, no schedule to keep, no work to do. That will probably last a few days then I will be up and going with my new projects," she said.

"I have been working or attending school full-time since I was 13. This is going to be new for me. I don't know how I'm going to react to it, to be honest."

PHOTOS: Hillary Clinton Through the Years: From Wellesley to the White House, and Beyond

Clinton has had no trouble articulating her reaction to what has arguably been the darkest chapter of her tenure as Secretary of State: the Sept. 11 attack on the U.S. consulate in Benghazi, Libya, in which four Americans, including Ambassador Chris Stevens, were killed.

Hillary's Next Chapter: On Family and Future Watch Video

Secretary Clinton had a heated exchange with Republican Senator Ron Johnson during her five hours of testimony before Congress about the attack last week. Johnson accused the administration of misleading the American people about the cause of the attack, when UN Ambassador Susan Rice, on Sunday political talk shows, blamed it on protesters.

Clinton snapped back at Johnson, "Four Americans are dead. What difference does it make?" For that, she has been sharply criticized by some conservatives.

Clinton said she "absolutely" stands by her response to Johnson, maintaining that the administration has been transparent with the information it knew, when it was available. Clinton said partisan politics have no place in a response to a terrorist attack against Americans.

"I believe that we should in public life, whether you're in the administration or the Congress, de-politicize crisis and work together to figure out what happened, what we can do to prevent it and then put into place both the institutional changes and the budgetary changes that are necessary, " she said.

"When someone tries to put into a partisan lens, when they focus not on the fact that we have such a terrible event happening with four dead Americans but instead what did somebody say on a Sunday morning talk show? That to me is not in keeping with the seriousness of the issue and the obligation we all have as public servants"

FULL TRANSCRIPT: Sec. of State Hillary Clinton's "Nightline" Interview

Asked about her health, Clinton said her recent illness, concussion and blood clot were all a surprise.

"When I got sick and fainted and hit my head I was so surprised, and I thought I would just get up and go to work. And thankfully I had very good medical care and doctors who said, 'No we'd better do an MRI, we'd better do this, we'd better do that,'" she said, calling herself "lucky."

"I know now how split second beset by a virus and dehydrated, what it can do to you."

Though she confirmed she is wearing special glasses to help with double vision, a lingering issue following her illness, Clinton said that she expects to be fully recovered and operating at "full speed" soon.

The Secretary told McFadden that if she does decide to run, she would have "no problem" making her health records public.

"Of course, that goes with the territory," she said.

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French seal off Mali's Timbuktu, rebels torch library

GAO, Mali (Reuters) - French and Malian troops retook control of Timbuktu, a UNESCO World Heritage site, on Monday after Islamist rebel occupiers fled the ancient Sahara trading town and torched several buildings, including a library holding priceless manuscripts.

The United States and the European Union are backing a French-led intervention in Mali against al Qaeda-allied militants they fear could use the West African state's desert north as a springboard for international attacks.

The recovery of Timbuktu followed the swift capture by French and Malian forces at the weekend of Gao, another major town in Mali's north that had been occupied by the alliance of jihadist groups since last year.

The two-week-old mission by France in its former Sahel colony, at the request of Mali's government, has driven the Islamist rebels northwards out of towns into the desert and mountains.

Without a shot being fired, 1,000 French soldiers and paratroopers and 200 Malian troops seized Timbuktu airport and surrounded the town on the banks of the Niger River, looking to block the escape of insurgents.

In both Timbuktu and Gao, cheering crowds turned out to welcome the French and Malian troops.

A third town in Mali's vast desert north, Kidal, had remained in Islamist militant hands. But Malian Tuareg MNLA rebels, who are seeking autonomy for their northern region, said on Monday they had taken charge in Kidal after Islamist fighters abandoned it.

A diplomat in Bamako confirmed the MNLA takeover of Kidal.

A French military spokesman said the assault forces at Timbuktu were avoiding any fighting inside the city to protect the cultural treasures, mosques and religious shrines in what is considered a seat of Islamic learning.

But Timbuktu Mayor Ousmane Halle told Reuters departing Islamist gunmen had four days earlier set fire to the town's new Ahmed Baba Institute, which contained thousands of manuscripts.

UNESCO spokesman Roni Amelan said the Paris-based U.N. cultural agency was "horrified" by the news of the fire, but was awaiting a full assessment of the damage.

Ali Baba, a worker at the Ahmed Baba Institute, told Sky News in Timbuktu more than 3,000 manuscripts had been destroyed. "They are bandits. They have burned some manuscripts and also stole a lot of manuscripts which they took with them," he said.

Marie Rodet, an African history lecturer at Britain's School of Oriental and African Studies, said Timbuktu held one of the greatest libraries of Islamic manuscripts in the world.

"It's pure retaliation. They (the Islamist militant rebels) knew they were losing the battle and they hit where it really hurts," Rodet told Reuters. "These people are not interested in any intellectual debate. They are anti-intellectual."

ISLAMISTS "ALL FLED"

The Ahmed Baba Institute, one of several libraries and collections in Timbuktu containing fragile documents dating back to the 13th century, is named after a Timbuktu-born contemporary of William Shakespeare and houses more than 20,000 scholarly manuscripts. Some were stored in underground vaults.

The French and Malians have encountered no resistance so far in Timbuktu. But they will now have to comb through a labyrinth of ancient mosques, monuments, mud-brick homes and narrow alleyways to flush out any hiding fighters.

The Islamist forces comprise a loose alliance that groups Al Qaeda in the Islamic Maghreb (AQIM) with Malian Islamist group Ansar Dine and AQIM splinter MUJWA.

They have retreated in the face of relentless French air strikes and superior firepower and are believed to be sheltering in the rugged Adrar des Ifoghas mountain range, north of Kidal.

The MNLA Tuareg rebels who say they now hold Kidal have offered to help the French-led offensive against the al Qaeda-affiliated Islamists. It was not clear, however, whether the French and Malians would steer their offensive further towards Kidal, or hold negotiations with the MNLA.

FRANCE: MALI "BEING LIBERATED"

The world was shocked by Timbuktu's capture in April by Tuareg fighters, whose separatist rebellion was later hijacked by Islamist radicals who imposed severe sharia (Islamic law).

Provoking international outrage, the Muslim militants - who follow a more radical Salafist brand of Islam - destroyed dozens of ancient shrines in Timbuktu sacred to Sufi Muslims, condemning them as idolatrous and un-Islamic.

They also imposed a strict form of Islamic law, or sharia, authorizing the stoning of adulterers and amputations for thieves, while forcing women to go veiled.

On Sunday, many women among the thousands of Gao residents who came out to celebrate the rebels' expulsion made a point of going unveiled. Other residents smoked cigarettes and played music to flout the bans previously imposed by the rebels.

Hundreds of troops from Niger and Chad have been brought to Gao to help secure the town.

"Little by little, Mali is being liberated," French Foreign Minister Laurent Fabius told France 2 television.

Speaking at a news conference in Paris, French President Francois Hollande said French troops would take a step back once the job of retaking key towns was complete, and Malian and other African troops would take over the task of hunting the rebels.

"They are the ones who will go into the northern part, which we know is the most difficult because that's where the terrorists are hiding," Hollande said.

As the French and Malian troops thrust into northern Mali, African troops for a U.N.-backed continental intervention force for Mali, expected to number 7,700, are being flown into the country, despite severe delays and logistical problems.

Outgoing African Union Chairman President Thomas Boni Yayi of Benin scolded AU states at a weekend summit in Addis Ababa for their slow response to assist Mali while former colonial power France took the lead in the military operation.

Burkina Faso, Benin, Nigeria, Senegal, Togo, Niger and Chad are providing soldiers for the AFISMA force. Burundi and other nations have pledged to contribute.

AU Peace and Security Commissioner Ramtane Lamamra said these regional troops could play a useful "clean-up" role once the main military operations against the Islamist rebels end.

Speaking in Addis Ababa on Monday, U.N. Secretary-General Ban Ki-moon said the U.N. was "actively considering" helping the troop-contributing African countries with logistical support.

(Additional reporting by Richard Valdmanis in Sevare, Mali, Bate Felix and David Lewis in Dakar, Maria Golovina in London, Alexandria Sage, Vicky Buffery and Emmanuel Jarry in Paris, Tiemoko Diallo in Bamako, Abdoulaye Massalatchi in Niamey, Richard Lough and Aaron Masho in Addis Ababa; Writing by Pascal Fletcher; Editing by Andrew Heavens)

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North Korea threatens "merciless" retaliation on South

SEOUL: North Korea on Tuesday vowed "merciless" retaliation against the South for its support of UN sanctions, as Seoul urged Pyongyang to step back from a widely expected nuclear test.

The perennially tense situation on the Korean peninsula has been stretched to its limit in the past week, with almost daily threats from the North that it is preparing to conduct a nuclear test as a riposte to the expanded sanctions.

A lengthy commentary published on Tuesday by the official Korean Central News Agency (KCNA) reiterated that the sanctions resolution passed by the UN Security Council was tantamount to a "declaration of war".

Noting what it called the South's "despicable" support for the resolution, KCNA said it was an act of gross provocation that would not go unanswered.

"The provokers will meet only merciless retaliatory blows," it said.

The commentary made no specific mention of the nuclear test that the North's top military body had explicitly signalled in a statement carried by KCNA last week.

The National Defence Commission had said the test was aimed at "arch-enemy" the United States, which had proposed the UN resolution penalising Pyongyang for a banned rocket launch in December.

In Seoul, the foreign ministry on Tuesday noted that the UN resolution had warned of further "significant action" against the North it it proceeds with another test.

"The government once again strongly urges North Korea to pay heed to the continued warnings from the international community and not push ahead with any further provocations, including a nuclear test," spokesman Cho Tai-Young said.

"I don't really understand why North Korea is sticking to an act that threatens security in the region at a time when its people are struggling from a lack of food," Cho said.

South Korean defence officials have said they believe the North is capable of conducting a nuclear test "any time" and announced on Tuesday the creation of a special task force to monitor the site of its two previous tests in 2006 and 2009.

The task force was set up by the South's Joint Chiefs of Staff and is studying data and intelligence being collected by state institutions and independent experts, defence ministry spokesman Kim Min-Seok told reporters.

The state-run Korea Institute of Geoscience and Mineral Resources has set up a situation room to receive and process seismic information that might indicate when a test is conducted, he added.

The institute detected an "artificial earthquake" about 40 seconds after the North's second nuclear test in 2009.

- AFP/al

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Soldier talks about his new arms after transplant

BALTIMORE (AP) — A soldier who lost all four limbs in an Iraq roadside bombing has two new arms following a double transplant at Johns Hopkins Hospital.

Twenty-six-year-old Brendan Marrocco along with the surgeons who treated him will be at the Baltimore hospital on Tuesday to discuss the new limbs.

The transplants are only the seventh double-hand or double-arm transplant ever conducted in the United States.

The infantryman was injured by a roadside bomb in 2009. The New York City man also received bone marrow from the same dead donor. The approach is aimed at helping his body accept the new arms with minimal medication to prevent rejection.

The military is sponsoring operations like these to help wounded troops. About 300 have lost arms or hands in the wars.

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Nightclub fire kills 233 in Brazil

SANTA MARIA, Brazil (Reuters) - A nightclub fire killed at least 233 people in southern Brazil on Sunday when a band's pyrotechnics show set the building ablaze and fleeing partygoers stampeded toward blocked exits in the ensuing panic.

Most of those who died were suffocated by toxic fumes that rapidly filled the crowded club after sparks from pyrotechnics used by the band for visual effects set fire to soundproofing on the ceiling, local fire officials said.

"Smoke filled the place instantly, the heat became unbearable," survivor Murilo Tiescher, a medical student, told GloboNews TV. "People could not find the only exit. They went to the toilet thinking it was the exit and many died there."

Firemen said one exit was locked and that club bouncers, who at first thought those fleeing were trying to skip out on bar tabs, initially blocked patrons from leaving. The security staff relented only when they saw flames engulfing the ceiling.

The tragedy in the university town of Santa Maria in one of Brazil's most prosperous states comes as the country scrambles to improve safety, security and logistical shortfalls before the 2014 World Cup soccer tournament and the 2016 Olympics, both intended to showcase the economic advances and first-world ambitions of Latin America's largest nation.

In Santa Maria, a city of more than 275,000 people, rescue workers and weary officials wept alongside family and friends of the victims at a gymnasium being used as a makeshift morgue.

"It's the saddest, saddest day of my life," said Neusa Soares, the mother of one of those killed, 22-year-old Viviane Tolio Soares. "I never thought I would have to live to see my girl go away."

President Dilma Rousseff cut short an official visit to Chile and flew to Santa Maria, where she wept as she spoke to relatives of the victims, most of whom were university students.

"All I can say at the moment is that my feelings are of deep sorrow," said Rousseff, who began her political career in Rio Grande do Sul, the state where the fire occurred.

It was the deadliest nightclub fire since 309 people died in a discotheque blaze in China in 2000 and Brazil's worst fire at an entertainment venue since a disgruntled employee set fire to a circus in 1961, killing well over 300 people.

'BARRIER OF THE DEAD'

Local authorities said 120 men and 113 women died in the fire, and 92 people are still being treated in hospitals.

News of the fire broke on Sunday morning, when local news broadcast images of shocked people outside the nightclub called Boate Kiss. Gradually, grisly details emerged.

"We ran into a barrier of the dead at the exit," Colonel Guido Pedroso de Melo, commander of the fire brigade in Rio Grande do Sul, said of the scene that firefighters found on arrival. "We had to clear a path to get to the rest of those that were inside."

Pedroso de Melo said the popular nightclub was overcrowded with 1,500 people packed inside and they could not exit fast.

"Security guards blocked their exit and did not allow them to leave quickly. That caused panic," he said.

The fire chief said the club was authorized to be open, though its permit was in the process of being renewed. But he pointed to several egregious safety violations - from the flare that went off during the show to the locked door that kept people from getting out.

"The problem was the use of pyrotechnics, which is not permitted," Pedroso de Melo said.

The club's management said in a statement that its staff was trained and prepared to deal with any emergency. It said it would help authorities with their investigation.

One of the club's owners has surrendered to police for questioning, GloboNews TV reported.

When the fire began at about 2:30 a.m., many revelers were unable to find their way out in the chaos.

"It all happened so fast," survivor Taynne Vendrusculo told GloboNews TV. "Both the panic and the fire spread rapidly, in seconds."

Once security guards realized the building was on fire, they tried in vain to control the blaze with a fire extinguisher, according to a televised interview with one of the guards, Rodrigo Moura. He said patrons were trampled as they rushed for the doors, describing it as "a horror film."

Band member Rodrigo Martins said the fire started after the fourth or fifth song and the extinguisher did not work.

"It could have been a short circuit, there were many cables there," Martins told Porto Alegre's Radio Gaucha station. He said there was only one door and it was locked. A band member died in the fire.

CELL PHONES STILL RINGING

TV footage showed people sobbing outside the club before dawn, while shirtless firefighters used sledge hammers and axes to knock down an exterior wall to open up an exit.

Rescue officials moved the bodies to the local gym and separated them by gender. Male victims were easier to identify because most had identification on them, unlike the women, whose purses were left scattered in the devastated nightclub.

Piles of shoes remained in the burnt-out club, along with tufts of hair pulled out by people fleeing desperately. Firemen who removed bodies said victims' cell phones were still ringing.

The disaster recalls other incidents including a 2003 fire at a nightclub in West Warwick, Rhode Island, that killed 100 people, and a Buenos Aires nightclub blaze in 2004 that killed nearly 200. In both incidents, a band or members of the audience ignited fires that set the establishment ablaze.

The Rhode Island fire shocked local and federal officials because of the rarity of such incidents in the United States, where enforcement of safety codes is considered relatively strict. After the Buenos Aires blaze, Argentine officials closed many nightclubs and other venues and ultimately forced the city's mayor from office because of poor oversight of municipal codes.

The fire early on Sunday occurred in one of the wealthiest, most industrious and culturally distinct regions of Brazil. Santa Maria is about 186 miles west of Porto Alegre, the capital of a state settled by Germans and other immigrants from northern Europe.

Local clichés paint the region as stricter and more organized than the rest of Brazil, where most residents are a mix descended from native tribes, Portuguese colonists, African slaves, and later influxes of immigrants from southern Europe.

Rio Grande do Sul state's health secretary, Ciro Simoni, said emergency medical supplies from all over the state were being sent to the scene. States from all over Brazil offered support, and messages of sympathy poured in from foreign leaders.

(Additional reporting by Guillermo Parra-Bernal, Gustavo Bonato, Jeferson Ribeiro, Eduardo Simões, Brian Winter and Guido Nejamkis.; Writing by Paulo Prada and Anthony Boadle; Editing by Todd Benson, Kieran Murray and Christopher Wilson)

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EU calls for more entrepreneurs

BRUSSELS: Policy makers in Europe want to convince more people to become entrepreneurs in order to bring back jobs and growth to the struggling bloc.

Critics have argued too many start-ups in a volatile financial climate will only struggle to survive while others said business-minded self-starters are born, not bred.

Policy makers in Brussels are more and more adamant that self-made businessmen and women will become the job creators Europe desperately needs.

The EU wants more entrepreneurial training at schools and universities, tax reductions for small businesses and the revision of insolvency rules countries so that honest failures don't inhibit entrepreneurs from trying again.

EU commissioner for enterprise, Mr Antonio Tajani, said: "We focus on entrepreneurs because entrepreneurs are innovative and they are the ones who come up with ideas. Even small entrepreneurs create jobs and growth over the last few years."

Traditionally, Europeans have been reluctant entrepreneurs. Last year, only 37 per cent of citizens were willing to launch their own business compared to levels of over 50 per cent of people in the US, China and Brazil.

Oliver Witmeur, from the Solvay Business School Entrepreneurship Academy said: "In the US and UK, entrepreneurship is positive. In Europe, we are more complicated. We don't like failure and success."

At the Solvay business school in Brussels, the Entrepreneurship academy has been running for thirty years. Despite the crisis and thanks to the growing role of technology, more and more students are singing up to the course.

Many point to Europe's complicated and inflexible labour laws as a key obstacle to more jobs and growth. However, there are voices who argue that more startups may be enough to jumpstart Europe's recovery.

Mr Witmeur said: "If you look at the big firms, the number of jobs is more or less decreasing. If you take the very small firms, there is same number of people coming in and exit. But the real growth drivers are growth in small number of companies in what we call the "gazelle" and they are creating new jobs"

Europe's unemployment crisis will force many into entrepreneurship out of necessity.

On the positive side, it may mean many out of a job will decide to pursue a life-long business idea, in hope that the EU's new action plan will inject some inspiration and make it easier for them.

- CNA/fa

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Temperatures rise in J&K, minimum temperature remains sub-zero

SRINAGAR: Night temperatures across Kashmir rose by several degrees, much to the relief of residents of the Valley, but the minimum temperature stayed sub-zero.

Kashmir Valley shivered for the last few days as the minimum temperatures hovered several degrees below the freezing point. As dry weather prevailed, water supply lines and water bodies, including the world famous Dal Lake, froze under the intense chill.

However, the spell of dry and intense cold conditions was broken as some parts of the Valley received light snowfall last night, bringing considerable improvement in the temperatures.

Leh town in the cold desert of Ladakh continued to be the coldest place in the state, despite the night temperature showing an increase of over seven degrees registering a low of -11.2 degree Celsius as against the previous night's -18.4 degree Celsius, a spokesman of the Met department said.

The minimum night temperature in the summer capital Srinagar was just a little below the freezing point at -0.4 degree Celsius, an increase of over four notches from the previous night, he said.

The minimum temperature on the previous night was -4.8 degree Celsius. Srinagar had recorded the coldest night of this winter on Saturday with a low of -5.8 degree Celsius.

The minimum night temperature in Pahalgam hill resort in south Kashmir jumped up by over six degrees to settle at -5 degree Celsius from the previous night's -11.4 degree Celsius, the spokesman said, adding the resort received a snowfall of 4 cm.

The ski-resort of Gulmarg, which shivered at a low of -8 degree Celsius the previous night, recorded a low of -6 degree Celsius, he said.

The minimum night temperature in the highway town of Qazigund in south Kashmir was -2.4 degree Celsius as against yesterday's -8.2 degree Celsius, almost up by six notches, the spokesman said.

The night temperature in Kokernag settled at a low of -3.3 degree Celsius, up by five notches from yesterday's -8.3 degree Celsius, he said, adding that Kokernag received light snowfall equivalent to 1 cm of rain.

In north Kashmir's Kupwara town, where the previous night's minimum was -5.3 degree Celsius, the minimum temperature settled at a low of -2.9 degree Celsius during the night, he said.

The night temperature in Kargil, also in the frontier region of Ladakh, settled at a minimum of -10 degree Celsius, an increase of 4.4 degrees from -14.4 degree Celsius the previous night.

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CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

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CDC: http://www.cdc.gov/flu/

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'Barrier of Bodies' Trapped Nightclub Fire Victims

The bodies of the young college students were found piled up just inside the entrance of the Kiss nightclub, among more than 230 people who died in a cloud of toxic smoke after a blaze enveloped the crowded locale within seconds and set off a panic.

Hours later, the horrific chaos had transformed into a scene of tragic order, with row upon row of polished caskets of the dead lined up in the community gymnasium in the university city of Santa Maria. Many of the victims were under 20 years old, including some minors.

As the city in southern Brazil prepared to bury the 233 people killed in the conflagration caused by a band's pyrotechnic display, an early investigation into the tragedy revealed that security guards briefly prevented partygoers from leaving through the sole exit. And the bodies later heaped inside that doorway slowed firefighters trying to get in.

"It was terrible inside — it was like one of those films of the Holocaust, bodies piled atop one another," said police inspector Sandro Meinerz. "We had to use trucks to remove them. It took about six hours to take the bodies away."

Survivors and another police inspector, Marcelo Arigony, said security guards briefly tried to block people from exiting the club. Brazilian bars routinely make patrons pay their entire tab at the end of the night before they are allowed to leave.

Germano Roratto/AFP/Getty Images

Brazil Nightclub Fire: Nearly 200 People Killed Watch Video

"It was chaotic and it doesn't seem to have been done in bad faith because several security guards also died," he told The Associated Press.

Later, firefighters responding to the blaze initially had trouble entering the club because "there was a barrier of bodies blocking the entrance," Guido Pedroso Melo, commander of the city's fire department, told the O Globo newspaper.

Police inspectors said they think the source of the blaze was a band's small pyrotechnics show. The fire broke out sometime before 3 a.m. Sunday and the fast-moving fire and toxic smoke created by burning foam sound insulation material on the ceiling engulfed the club within seconds.

Authorities said band members who were on the stage when the fire broke out later talked with police and confirmed they used pyrotechnics during their show.

Meinerz, who coordinated the investigation at the nightclub, said one band member died after escaping because he returned inside the burning building to save his accordion. The other band members escaped alive because they were the first to notice the fire.

The fire spread so fast inside the packed club that firefighters and ambulances could do little to stop it, survivor Luana Santos Silva told the Globo TV network.

"There was so much smoke and fire, it was complete panic, and it took a long time for people to get out, there were so many dead," she said.

Most victims died from smoke inhalation rather than burns. Many of the dead, about equally split between young men and women, were also found in the club's two bathrooms, where they fled apparently because the blinding smoke caused them to believe the doors were exits.

There were questions about the club's operating license. Police said it was in the process of being renewed, but it was not clear if it was illegal for the business to be open. A single entrance area about the size of five door spaces was used both as an entrance and an exit.

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Riots over Egyptian death sentences kill at least 32

PORT SAID, Egypt/CAIRO (Reuters) - At least 32 people were killed on Saturday when Egyptians rampaged in protest at the sentencing of 21 people to death over a soccer stadium disaster, violence that compounds a political crisis facing Islamist President Mohamed Mursi.

Armored vehicles and military police fanned through the streets of Port Said, where gunshots rang out and protesters burned tires in anger that people from their city had been blamed for the deaths of 74 people at a match last year.

The rioting in Port Said, one of the most deadly spasms of violence since Hosni Mubarak's ouster two years ago, followed a day of anti-Mursi demonstrations on Friday, when nine people were killed. The toll over the past two days stands at 41.

The flare-ups make it even tougher for Mursi, who drew fire last year for expanding his powers and pushing through an Islamist-tinged constitution, to fix the creaking economy and cool tempers enough to ensure a smooth parliamentary election.

That vote is expected in the next few months and is meant to cement a democratic transition that has been blighted from the outset by political rows and street clashes.

The National Defense Council, which is led by Mursi and includes the defense minister who commands the army, called for "a broad national dialogue that would be attended by independent national characters" to discuss political differences and ensure a "fair and transparent" parliamentary poll.

The National Salvation Front of liberal-minded groups and other Mursi opponents cautiously welcomed the call.

THREATS OF VIOLENCE

Clashes in Port Said erupted after a judge sentenced 21 men to die for involvement in the deaths at the soccer match on February 1, 2012. Many were fans of the visiting team, Cairo's Al Ahly.

Al Ahly fans had threatened violence if the court had not meted out the death penalty. They cheered outside their Cairo club when the verdict was announced. But in Port Said, residents were furious that people from their city were held responsible.

Protesters ran wildly through the streets of the Mediterranean port, lighting tires in the street and storming two police stations, witnesses said. Gunshots were reported near the prison where most of the defendants were being held.

A security source in Port Said said 32 people were killed there, many dying from gunshot wounds. He said 312 were wounded and the ministry of defense had allocated a military plane to transfer the injured to military hospitals.

Inside the court in Cairo, families of victims danced, applauded and some broke down in tears of joy when they heard Judge Sobhy Abdel Maguid declare that the 21 men would be "referred to the Mufti", a phrase used to denote execution, as all death sentences must be reviewed by Egypt's top religious authority.

There were 73 defendants on trial. Those not sentenced on Saturday would face a verdict on March 9, the judge said.

At the Port Said soccer stadium a year ago, many spectators were crushed and witnesses saw some thrown off balconies after the match between Al Ahly and local team al-Masri. Al Ahly fans accused the police of being complicit in the deaths.

Among those killed on Saturday were a former player for al-Masri and a soccer player in another Port Said team, the website of the state broadcaster reported.

TEARGAS FIRED

On Friday, protesters angry at Mursi's rule had taken to the streets for the second anniversary of the uprising that erupted on January 25, 2011 and brought Mubarak down 18 days later.

Police fired teargas and protesters hurled stones and petrol bombs. Nine people were killed, mainly in the port city of Suez, and hundreds more were injured across the nation.

Reflecting international concern at the two days of clashes, British Foreign Office Minister for the Middle East Alistair Burt said: "This cannot help the process of dialogue which we encourage as vital for Egypt today, and we must condemn the violence in the strongest terms."

European Union foreign policy chief Catherine Ashton urged the Egyptian authorities to restore calm and order and called on all sides to show restraint, her spokesperson said.

On Saturday, some protesters again clashed and scuffled with police in Cairo, Alexandria and other cities. In the capital, youths pelted police lines with rocks near Tahrir Square.

In Suez, police fired teargas when protesters angry at Friday's deaths hurled petrol bombs and stormed a police post and other governmental buildings including the agriculture and social solidarity units.

Around 18 prisoners in Suez police stations managed to escape during the violence, a security source there said, and some 30 police weapons were stolen.

"We want to change the president and the government. We are tired of this regime. Nothing has changed," said Mahmoud Suleiman, 22, in Cairo's Tahrir Square, the cauldron of the 2011 anti-Mubarak revolt.

Mursi's opponents say he has failed to deliver on economic pledges or to be a president representing the full political and communal diversity of Egyptians, as he promised.

"Egypt will not regain its balance except by a political solution that is transparent and credible, by a government of national salvation to restore order and heal the economy and with a constitution for all Egyptians," prominent opposition politician Mohamed ElBaradei wrote on Twitter.

The opposition National Salvation Front, responding to the Defense Council's call for dialogue, said there must be a clear agenda and guarantees that any deal would be implemented, spokesman Khaled Dawoud told Reuters.

The Front earlier on Saturday threatened an election boycott and to call for more protests on Friday if demands were not met. Its demands included picking a national unity government to restore order and holding an early presidential poll.

Mursi's supporters say the opposition does not respect the democracy that has given Egypt its first freely elected leader.

The Muslim Brotherhood, which propelled Mursi to office, said in a statement that "corrupt people" and media who were biased against the president had stirred up fury on the streets.

The frequent violence and political schism between Islamists and secular Egyptians have hurt Mursi's efforts to revive an economy in crisis as investors and tourists have stayed away, taking a heavy toll on Egypt's currency.

(Additional reporting by Omar Fahmy, Peter Griffiths in London and Claire Davenport in Brussels; Writing by Edmund Blair; Editing by Mark Trevelyan)

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