2 EXPLOSIONS HIT NEAR ARMY HQ IN SYRIAN CAPITAL

DAMASCUS, Syria (AP) -- Twin blasts targeting Syria's army command headquarters rocked the capital on Wednesday, setting off hours of sporadic gunbattles and a raging fire inside the heavily guarded compound, state-run media and witnesses said.

An army statement said no military commanders or personnel were hurt in the explosions, one of which was from a car bomb. But Iranian Press TV said one of its correspondents, 33-year-old Maya Nasser, a Syrian national, died in an exchange of fire in the area following the blasts.

The explosions were the latest to hit the Syrian capital as the country's civil war intensified and appeared to show the deep reach of the rebels determined to topple President Bashar Assad's regime.

Syria's state-run news agency, SANA, said the explosions struck just before 7 a.m. (0400 GMT) near the landmark Omayyad Square. They were heard several miles (kilometers) away and shattered the windows of the Dama Rose hotel and other nearby buildings.

The army command building was in flames, sending huge columns of thick black smoke that hung over Damascus for several hours following the blasts.

Witnesses said the explosions were followed by heavy gunfire that stretched on for hours at the Omayyad Square and around the military compound. One witness who managed to get close to the area, which was cordoned off, saw panicked soldiers shooting in the air randomly as they ran.

The witness, who spoke on condition of anonymity for fear of reprisals, said it appears that rebels may have been holed up inside the army command building, from where the sound of gunfire could clearly be heard.

The British-based Syrian Observatory for Human Rights, which relies on a network of activists on the ground, said heavy clashes were taking place inside the compound of the army command, adding that there were casualties on both sides.

"The explosions shook the entire apartment and the windows shattered," said a resident of the nearby Abu Rummaneh district who spoke on condition of anonymity out of security concerns. "It was like a quake."

The army statement said the blasts were caused by a car bomb and an explosive device that went off near the army command buildings. It said "terrorists" in the area simultaneously opened fire randomly to terrorize people, adding that authorities were pursuing the gunmen. Syrian authorities regularly refer to rebels fighting to topple Assad's regime as terrorists.

The statement said a number of guards were wounded.

"I can confirm that all our comrades in the military command and defense ministry are fine," Information Minister Omran Zoubi told Syrian TV, which is located near the site of the explosion, in a telephone call.

"Everything is normal," he said. "There was a terrorist act, perhaps near a significant location, yes, this is true, but they failed as usual to achieve their goals."

Ambulances were rushed to the site as police sealed off the area to traffic and journalists. Traffic in other areas snarled as checkpoints were set up, blocking access to the capital from the suburbs.

Syria's unrest began in March 2011 when protests calling for political change met a violent government crackdown. Many in the opposition have since taken up arms as the conflict morphed into a civil war that activists say has killed nearly 30,000 people. Over the past few months, the rebels have increasingly targeted security sites and symbols of regime power in a bid to turn the tide in the fighting.

On July 18, rebels penetrated the heart of Syria's power elite, detonating a bomb inside a high-level crisis meeting in Damascus that killed three top regime officials, including Assad's brother-in-law and the defense minister. Other large blasts have targeted the headquarters of security agencies in the capital, killing scores of people this year.

On Tuesday, several bombs went off inside a Damascus school that activists said was being used by regime forces as a security headquarters. Several people were wounded.

Syria's conflict was the focus of attention as world leaders gathered at the U.N. General Assembly's annual meeting in New York this week.

U.N. Secretary-General Ban Ki-moon demanded international action to stop the war in Syria, telling a somber gathering of world leaders Tuesday that the 18-month conflict had become "a regional calamity with global ramifications."

Ban, declaring that the situation in Syria is getting worse every day, called the conflict a serious and growing threat to international peace and security that requires attention from the deeply divided U.N. Security Council.

That appears highly unlikely, however, at least in the near future.

Russia and China have vetoed three Western-backed resolutions aimed at pressuring Assad to end the violence and enter negotiations on a political transition, leaving the U.N.'s most powerful body paralyzed in what some diplomats say is the worst crisis since the U.S.-Soviet standoff during the Cold War.

In sharp contrast to the U.N. chief, President Barack Obama pledged U.S. support for Syrians trying to oust Assad - "a dictator who massacres his own people."

Egypt stocks soar on Morsi's US visit, development plans

Egyptian stocks roared firmly into the green on Tuesday as President Morsi's visit to the US signalled a calming of recent tensions with Washington and officials in Cairo talked of ambitious new development projects to kickstart the troubled economy.

The benchmark EGX30 rocketed 2.15 per cent to close at 5,956 points, with just one stock in the main index slipping into the red.

 

From the 184 stocks traded on Tuesday, 149 gained in value and 28 declined -- a performance reflected in the broader-based EGX70 which finished up 1.79 per cent.

 

"Morsi's visit to the United States [and his meetings with officials there] suggest recent tensions are over. That's encouraging foreign investors," said Ashraf Abdel-Aziz, head of institutional sales at Cairo-based brokerage Arabeya Online.

 

Egypt's president flew to New York on Sunday to attend meetings of the United Nations General Assembly, his first visit to the US since his June election. His visit follows recent diplomatic tensions surrounding an anti-Islam film made in the US which sparked four days of violent protests around the American embassy in Cairo.

 

On Monday, Investment Minister Osama Saleh outlined a string of projects worth a combined $8 billion and aimed at developing areas around the Suez Canal and in Upper Egypt in a bid to create jobs and attract investors.

 

Also boosting confidence, said Abdel-Aziz, was Morsi's decision to bring the Egyptian Financial Supervisory Authority (EFSA) and the country's stock exchange under the direct control of Cabinet, rather than the Ministry of Investments. 

 

It was a potent sign, he said, that the government is taking full control of the economy.

 

Turnover hit LE989.8 million ($162.46m), some 72 per cent it came from Egyptians investors.

 

Commercial International Bank saw the heaviest trade, some LE71.73 million on the back of foreign interest. It closed up a mighty 3.45 per cent.

 

Investment bank EFG-Hermes was close behind, seeing LE69.02 million of turnover and with shares gaining 1.82 per cent. Property developer the Talaat Moustafa Group was in third place, closing up 3.65 per cent.

 

Landline monopoly Telecom Egypt was the sole high-cap to take a hit, losing a hefty 2.3 per cent. This followed news that its controversial chairman Akil Beshir, whose recent tenure has been marked by workers' protests, will step down on 1 October.

 

Egyptians and non-Arab foreigners were the day's buyers, scooping up a net LE4.6m and LE4.06m respectively.

Libyan leader vows his country will not be a burden

After voicing his condolences again for a militant attack on the US mission in the eastern city of Benghazi in which four Americans were killed, Libyan leader Mohamed al-Megaryef said in English to US Secretary of State Hillary Clinton: "We will not be a burden."
The two were meeting in New York on the sidelines of the UN General Assembly, in the wake of more than a week of violent protests triggered by an anti-Islam film which saw tens of thousands of demonstrators take to the streets.
US ambassador to Libya Chris Stevens was killed in the September 11 assault on the Benghazi mission, along with three other diplomatic staffers, when the compound came under sustained heavy arms fire for several hours.
"I also seize this opportunity to reaffirm that what happened on 11th of September towards these US citizens does not express in any way the conscience of the Libyan people, their aspirations, their hopes or their sentiments towards the American people," he added, in a softly-spoken speech, mostly through a translator.
He said the attack in Benghazi "was a very painful, huge tragedy, not only for the American people and the families of the victims, but also for the Libyan people."
"The Libyan people lost a friend, lost someone who was very supportive of them, someone who was very supportive of our revolution and someone who was always there for them."
Clinton told the Libyan leader that she wanted to thank him for his government's efforts "to help find and bring to justice all those responsible for the attack.
"I'd also like to thank the Libyan people for the outpouring of support they have shown to not only Ambassador Stevens, but on behalf of the United States," she said at the start of their talks in an upscale New York hotel.
"Courage has been the defining characteristic of the Libyan people over these last two years," Clinton added.
"Courage to rise up and overthrow a dictator, courage to choose the hard path of democracy, courage to stand against violence and division in the country and the world. Mr President, that kind of courage deserves our support."
After the talks, a senior State Department official said the two sides had reviewed the efforts made to rein in the militias, to deal with shoulder-launched missiles and other excess weapons left over from the era of toppled tyrant Moamer Kadhafi.
Clinton "offered to intensify our support and help for the Libyan government in all of those areas," the official.
Megaryef, who is the head of the national assembly, said there were two main threats to Libyan security – the threat from extremists, and also from remnants of the Kadhafi era.
"Security is their government's absolute highest priority," the US official said, adding they also talked about economic challenges facing Libya as it seeks to diversify away from being dependant on petrochemicals.

Absence of parliament will not stall IMF loan to Egypt: PM Qandil

Egypt denied on Monday that a $4.8 billion loan requested from the International Monetary Fund would be put to a yet-to-be-elected parliament for approval, a move that could have delayed the dispersal of funds.

Any hold-up could shake the confidence of investors who have been cheered by Egypt's progress with seeking the loan, needed to plug holes in the country's budget and balance of payments.
Alaa El Hadidi, the spokesman for Prime Minister Hisham Qandil, said that in the absence of a parliament - the chamber was dissolved in June - President Mohamed Morsi had legislative powers and could approve any agreement.
"In accordance with the constitutional declaration, any international agreement needs to be approved by the legislative authority, and in the absence of parliament, President Mohamed Morsi is empowered to take such decisions," he told Reuters.
Similarly, Hatem Saleh, minister of Industry and International trade also confirmed on Monday that Egypt will go ahead with the loan agreement despite the absence of an elected legislative body.
"The constitutional declaration solves this problem for Egypt," he said on Monday during an investment conference hosted by Beltone Financial in Cairo.
Earlier, Egyptian state TV carried a report quoting Qandil as saying the IMF deal would be put to parliament. With parliamentary elections potentially several months away, that could push back the release of funds
"Prime Minister Hisham Qandil said that the loan to be agreed upon with the IMF of $4.8 billion will be presented in Egypt's new parliament before it is passed," an anchorwoman said during the state news broadcast.
The International Monetary Fund said on 19 September it will send a mission to Egypt in coming weeks to discuss possible financial help once the government has finalized its economic program, and hopes to conclude the loan talks by year end.
Elections to the Egyptian parliament are due to take place following the completion of a new constitution, which must first be approved in a referendum.

Netanyahu heads to U.N. to address Iran concerns, ease U.S. rift

Israeli Prime Minister Benjamin Netanyahu will on Thursday arrive at the U.N. General Assembly in New York to talk about the threat posed by a nuclear Iran in the hope of gaining support for more sanctions.

But no less important will be the opportunity for Netanyahu to show the world that despite the recent tension with Washington over his demand that they present Iran with “red lines,” the two allies are equally determined to prevent Tehran going nuclear.

“I will reiterate that the most dangerous country in the world must not be allowed to arm itself with the most dangerous weapon in the world,” he said on Sunday, referring to his U.N. trip.

Since taking office in 2009, Netanyahu has consistently placed the “Iranian threat” at the forefront of his foreign policy, repeatedly warning about Tehran’s civilian nuclear program, which Israel and much of the West believe could lead to weapons capability.

The outspoken Netanyahu, leader of the Middle East’s sole, albeit undeclared nuclear power, has refused to rule out a strike to prevent Iran from developing such a capability, and in recent weeks has demanded that Washington set unambiguous “red lines” for Tehran.

But the administration of U.S. President Barack Obama has flatly refused to do so, with top officials shrugging it off as political grandstanding while stressing their commitment to preventing Iran developing a bomb.

And tensions were further exacerbated after Obama declined an Israeli request to meet Netanyahu during the visit, citing a tight schedule.

Despite the spat, Netanyahu is likely to look at his U.N. address as an opportunity to highlight the unity between Israel and its most powerful ally on the Iranian issue, said Zalman Shoval, a former Israeli ambassador to the United States.

Netanyahu, he said, will again make the Israeli case on Iran and stress that despite their differences, the two administrations “are fundamentally in agreement, not only on the danger of Iran, but also in their determination not to let Iran reach a bomb.”

The Israeli leader will be using the U.N. as “a platform, with the entire world observing and listening -- especially the United States,” he said, explaining that the difference between them was “not an argument over the fundamentals, but over details.”

He also shrugged off the fact the two men won't meet, saying it would have been “mainly symbolic, since talks on Iran are held on a daily basis.”

During the three-day visit, Netanyahu will meet U.S. Secretary of State Hillary Clinton, U.N. Secretary General Ban Ki-moon and Canadian Prime Minister Stephen Harper.

Speaking on condition of anonymity, an Israeli official expressed hope that Netanyahu’s U.N. address would succeed in piling further pressure on Iran.

“We’d like to come out of it with greater international resolve and determination to prevent Iran from achieving nuclear weapons,” he told AFP.

Senior cabinet minister Dan Meridor said it would be enough if Netanyahu managed to clearly lay out Israel's stance on the central issues.

“If Netanyahu succeeds in presenting the Israeli positions on main issues clearly -- something he is capable of doing -- that would be a success,” said Meridor, who is also the intelligence minister.

Despite a punishing regime of international sanctions targeting Iranian oil exports and its banking sector, Israel has urged even tougher action, saying that so far, the sanctions have not forced a change in Tehran’s policy.

Earlier this month, Netanyahu told two U.S. television networks that within around six months, Iran would be “90 percent of the way” towards having enough enriched uranium for an atom bomb.

Eytan Gilboa, an expert on U.S.-Israeli relations at Bar Ilan University, agreed that Israel would push for further sanctions, saying there was still a variety of painful measures that could be imposed on Iran, such as targeting their national carrier, Iran Air.

He also suggested that instead of Netanyahu getting U.S. assurances it would attack if Iran makes the dash for a bomb, Israel could instead receive the weapons needed to enable an effective strike against Iran's nuclear facilities.

Beyond that, Netanyahu’s speech was likely to seek to “justify military action, in the event it happens,” he said.

The Israeli leader was also likely to try and distance himself from the upcoming U.S. presidential election following allegations that his thinly-veiled criticism of Obama’s Iran policy was tantamount to meddling in the vote, Gilboa said.

“He needs to say: I can’t be responsible for what candidates do,” said Gilboa, noting it may prove difficult for Netanyahu to detach himself from his long-term friend and Republican contender Mitt Romney.

Egypt upholds death penalty in Sinai attacks

An Egyptian court in the Suez Canal city of Ismailiya has upheld the sentence of 14 militants to death by hanging, and four others to life imprisonment, over the killing of seven people in the Sinai Peninsula last year. The country's top cleric had approved the death sentences, as is customary. Six men will be hanged, while the eight others were being tried in absentia for the attacks on a bank and police station. The men, who belong to a group called Tawheed wal Jihad (Monotheism and Holy War), were charged by the prosecutor with murdering members of the army, police and a civilian in el-Arish in June and July 2011. The original sentencing of the men occurred on August 14. "These are clearly very serious offences," said Al Jazeera's Jacky Rowland, reporting from Cairo. "That members of the security forces were killed made the court take a particularly dim view of these crimes." The verdicts were met with cries from the accused against President Mohamed Morsi, the head of state elected this year whom the defendants blamed for the court's decision. "Morsi is an infidel and those who follow him are infidels," shouted one defendant. Others cried "God is Great" as they listened to the judge from inside the metal cage in which they stood during trial sessions. The bearded men wore traditional white robes and some were seen holding the Quran. The same group was accused of carrying out a series of bomb attacks in 2004 and 2005 against tourist resorts in South Sinai, which lead to the deaths of 34 people. "This court decision is a milestone. It gives a strong message to the militant groups that the state, President Mohamed Morsi's government, will not tolerate attacks on the Egyptian armed forces and police," said Nageh Ibrahim, an Islamist researcher and a former fighter. Egypt's Sinai has suffered from faltering security since President Hosni Mubarak was swept from power in a popular uprising in February 2011. Smuggling and other criminality by armed groups is rife in the region. Egypt's army and police launched a major sweep after a daring raid that killed 16 Egyptian border guards on August 5. The Egyptian government and Israel say they are co-ordinating on the security operation, in which hundreds of Egyptian troops with tanks, armoured vehicles and helicopters were sent in a joint operation with police to raid hideouts, arrest suspects and seize weapons. But our correspondent said that, despite the ongoing operation, there is little information about how successful it has been in bringing the Sinai back under government control.

Foreign intervention in Syria would be ‘a big mistake’: Egypt’s Mursi

Egyptian President Mohammed Mursi said early Tuesday that he opposes any foreign military intervention in the Syria conflict but believes President Bashar al-Assad must go.

In an interview with PBS television’s Charlie Rose ahead of the U.N. General Assembly meeting in New York, Mursi said the diplomatic quartet of Egypt, Iran, Saudi Arabia and Turkey could help end the 18-month-old conflict.

“I am against foreign intervention by force in what happens in Syria,” Mursi said. “I do not condone this and I think that it is a big mistake if it happens,” he added through an interpreter. “Egypt does not agree to this.”

Mursi, a former senior member of the Muslim Brotherhood who became Egypt’s first democratically elected president in June, said Arab nations should “support the people of Syria in their march toward freedom.”

“President Assad has no choice but to leave,” Mursi added. “There is no room for political reform. Change is what the people want, and the will of the people must be respected,” he added.

“The regime should have realized that the military solution would not stop the revolution. Tens of thousands of people have been killed and more could follow, so the main thing is to stop the bloodshed,” he said according to AFP.

Mursi said he had brought together officials from Egypt, Iran, Saudi Arabia and Turkey in a bid to find a solution to the conflict, in which Syrian activists say more than 29,000 people have been killed.

The Syrian government has accused Saudi Arabia and Turkey of arming opposition rebels, while UN experts have said Iran is arming Assad's forces.

"This is the reason why I chose these countries,” Mursi said. “You cannot solve the problem without those countries which intervene in the problem. The stakeholders are the ones who sit down together to solve the problem.”

The Egyptian leader added that he hoped he could bring together the heads of states of the four nations to discuss the civil war.

Mursi is to speak at the U.N. General Assembly on Wednesday.

On Monday, meanwhile, Secretary of State Hillary Clinton reassured Mursi that the United States would forge ahead with plans to expand economic assistance despite anti-American protests that cast new shadows over U.S. engagement with the region.

Clinton met Mursi in New York and reinforced the Obama administration’s continued commitment to provide both military and economic aid for Cairo, a senior State Department official said.

“What he heard from the secretary is that she is committed to following through on what she has said we will do,” the official said following the 45-minute meeting, Reuters reported.

U.S. officials said earlier this month they were close to a deal with Egypt’s new government for $1 billion in debt relief to help Cairo shore up its ailing economy in the aftermath of its pro-democracy uprising, which ousted autocratic President Hosni Mubarak.

The aid package had languished during Egypt’s 18 months of political turmoil and progress appeared to reflect a cautious easing of U.S. suspicions about Mursi, who was elected in June.

Mursi will use his New York trip to appear at former President Bill Clinton’s annual philanthropic summit but has no plans to meet U.S. President Obama, who is forgoing individual meetings with world leaders during his own brief stop at the United Nations on Tuesday.

Clinton and Mursi also discussed security issues including a rising militant threat in the Sinai Peninsula, a region critical to relations with neighboring Israel.

The U.S. official said Clinton and Mursi also touched on the issue of Iran but indicated the United States would be slow to support Mursi’s proposal that Iran, Egypt, Turkey and Saudi Arabia form a new group to try to find a solution to the violence in Syria.

“The Egyptians themselves would say that it's a new initiative and no one is sure whether it is going to head toward an end point or not,” the official said. “We always have concerns when Iran is engaged.”

Obama's rival in the U.S. presidential race, Republican Mitt Romney, called for a tougher line with Egypt after protesters scaled the Cairo compound wall and tore down the U.S. flag in one of series of protests that also saw the U.S. consulate attacked in the Libyan city of Benghazi, killing the U.S. ambassador and three other Americans.

Obama created doubts this month when he told a Spanish-language television network that the United States considered the new Islamist government neither an ally nor an enemy.

The U.S. official said Clinton’s meeting with the Egyptian leader was relaxed and warm and waved away suggestions that the president’s “ally” comment reflected broader uncertainty in the relationship.

“We’ve moved past that,” the official said.