Merkel

Clinton urges Mideast reforms

The Mideast faces a "perfect storm" of unrest and leaders in the region should implement democratic reforms to ward off further instability, United States. Secretary of State Hillary Clinton said on the Saturday.

Speaking to a security conference in Munich, Clinton said the status quo throughout the region is "simply not sustainable."

"The region is being battered by a perfect storm of powerful trends," she said. "Leaders in the region may be able to hold back the tide for a little while, but not for long."

Clinton was addressing the International Conference on Security Policy in Germany as a 12th day of anti-government protests began in the Egyptian capital.

She said change is a "strategic necessity" that will make Arab nations stronger and their people more prosperous and less susceptible to extremist ideologies. The region will face greater threats and insecurity without political reforms, she said.

"This isn't simply a matter of idealism; it's a strategic necessity," she said. "Without genuine progress toward open and accountable political systems, the gap between people and their governments will only grow, and instability will only deepen."

Her statement was made as tens of thousands of people gathered in Cairo's main square to again demand the resignation of President Hosni Mubarak.

The scene was tense, but calm, after another round of stone-throwing between demonstrators and Mubarak supporters in street sides just east of Tahrir Square on Friday.

The energy level remains high as protesters wave flags, clap, bang on metal barricades, chant and play music, CBC's Susan Ormiston said, reporting from Cairo.

"There's a lot of running around the square as various groups run to different entrances, perhaps trying to fend off any attempts to breach the security around the square," Ormiston said.

"We have not seen any visible confrontations between pro- and anti-Mubarak supporters this morning, but one more tank has rolled in a little closer toward one end of the square, and the guns are pointing in."

Officials say at least 109 people have been killed since the protests began on Jan. 25.

There are some signs that the Egyptian government and opposition parties may be opening talks on a transfer of power. American diplomatic sources say Mubarak's Vice-President Omar Suleiman is expected to meet with opposition leaders, later Saturday.

In a separate development, Egyptian President Hosni Mubarak met with government officials and the head of the central bank for talks on economic issues.

The ministers responsible for trade, industry, finance and oil portfolios met with Mubarak in an effort to project calm amid the impact the country's political crisis is having on Egypt's economy.

It's estimated the standoff has cost the country an estimated $3.1 billion US.

Trade Minister Samiha Fawzi Ibrahim said exports from Egypt were down six per cent cent in January due to the protests, Reuters reported.

Earlier in the week, Mubarak, who's ruled the country for nearly 30 years, said he wouldn't run in the September presidential election.

He said he would work over the remaining months of his term to guarantee a peaceful transition of power. However, the United States. is pressuring him to begin the transfer of power as soon as possible.