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Egyptian President Hosni Mubarak's announcement that he will serve out remaining term immediately rejected by angry crowds

• Jack Shenker and Peter Beaumont in Cairo, Ian Black and Chris McGreal
• The Guardian, Wednesday 2 February 2011

Egypt's embattled president, Hosni Mubarak, bowed to the pressure of millions of people massing on the streets, pledging to step down at the next election and pave the way for a new leader of the Arab world's largest country.

But Barack Obama, who effectively withdrew US support for the leader of its key Arab ally in a day of fast moving developments, gave an equivocal welcome to the speech by saying that "change must begin now" while praising the "passion and dignity" of the demonstrators in the streets as an inspiration.

Mubarak said he would not be a candidate for a seventh term but would remain in power to oversee reform and guarantee stability – a position that was immediately rejected by angry crowds and promised yet more drama in Egypt's extraordinary crisis.

"In the few months remaining in my current term I will work towards ensuring a peaceful transition of power," Mubarak said. "I have exhausted my life in serving Egypt and my people. I will die on the soil of Egypt and be judged by history" – a clear reference to the fate of Tunisia's president who fled into exile last month.

Looking grave as he spoke on state TV last night in front of the presidential seal, Mubarak attacked those responsible for protests that had been "manipulated by political forces", caused mayhem and chaos and endangered the "stability of the nation".

In a defiant, finger-wagging performance the 82-year-old said he was always going to quit in September – " a position he had never made public until now.

Opposition leaders had already warned throughout a dramatic eighth day of mass protests that only Mubarak's immediate departure would satisfy them.

The Egyptian leader made his announcement after meeting a White House special envoy who conveyed the message that Washington had in effect withdrawn US support for the man who had been the linchpin of its Middle East strategy.

The White House declined to reveal details of the message conveyed by the envoy, Frank Wisner, a former US ambassador to Cairo who is close to Mubarak other than to say he urged him not to seek re-election. But after the Egyptian leader's speech, Obama spoke to Mubarak for 30 minutes and then made a statement at the White House in which he praised the protesters and called for the transition of power to begin immediately.

But the US president did not explicitly call for Mubarak to resign immediately, leaving open the possibility of Washington accepting the Egyptian leader overseeing the transition in the face of unprecedented protests and an insistence by opposition leaders that they would not negotiate while Mubarak remains in power.

"What is clear, and what I indicated tonight to President Mubarak, is my belief that an orderly transition must be meaningful, it must be peaceful and it must begin now," said Obama.

"Furthermore the process must include a broad spectrum of Egyptian voices and opposition parties. It should lead to elections that are free and fair."

But in Washington and Cairo there were questions over the Obama administration's position with some American politicians, such as John Kerry, chairman of the Senate's foreign affairs committee, saying Mubarak must resign immediately.

Certainly many Egyptians want that. "May it be tonight, oh God," chanted the crowds in Cairo's Tahrir Square as they waited to hear the historic speech.

Mubarak's statement came at the end of a day that saw epic protests. Millions of people rallied across the country.

"Illegitimate," chanted the vast crowds choking Tahrir Square. "He [Mubarak] will leave, we will not leave," went another slogan, in a festive atmosphere that belied the tense stalemate that has emerged between the people and the regime over an extraordinary 48 hours.

With the army standing by its landmark pledge not to use force against demonstrators, Mubarak faced an intense and co-ordinated US campaign to persuade him and the powerful Egyptian military to effect "an orderly transition".

But as troops barricaded the presidential palace with barbed wire, Egypt's fractured opposition rallied together to reject any talks with the ruling National Democratic party on political reform, insisting the president must stand down before any dialogue can get under way.

On Monday, Mubarak ordered his new vice-president and intelligence chief, Omar Suleiman, to begin a dialogue with opposition groups, including the powerful Muslim Brotherhood. "Omar Suleiman approached us, and we have rejected his approaches," Essam el-Arian, a Brotherhood spokesman, told the Guardian. "As long as Mubarak delays his departure, these protests will remain and they will only get bigger."

Mohammed ElBaradei, 68, the former UN nuclear weapons inspector who has been nominated to lead any negotiations, met protesters and the US ambassador to Egypt, Margaret Scobey, insisting afterwards that no talks were possible while the president remained in power.

"I hope to see Egypt peaceful and that's going to require as a first step the departure of President Mubarak," he told al-Arabiya TV. "If President Mubarak leaves then everything else will progress correctly."Mass protests were reported across Egypt, including in Alexandria, Suez and many other cities.

Underlining the regional impact of the crisis, the Jordanian prime minister was sacked after weeks of protests over price rises and unemployment and inspired by events in Tunisia and now Egypt.

The Foreign Office said in a statement last night: "We have been clear in public, and with President Mubarak and his government in private, about the need for a transition to a broader-based government that will produce real, visible and comprehensive change."

William Hague, the foreign secretary, said a charter flight would be sent to Cairo to bring Britons back but they would have to pay £300 for the service.

barbed wire: drut kolczasty

belie: maskować

chant: skandować

choke: zapychać

comprehensive: o dużym zasięgu, wyczerpujący, pełny

conveye the message: przekazać wiadomość

defiant: wyzywający, prowokujący

embattled: osaczony

envoy: wysłannik

epic: entuzjastyczny

equivocal: dwuznaczny

 exile: wygnanie

explicitly: otwarcie

finger-wagging: grożący, ostrzegawczy

flee (fled, fled): uciekać

fractured: złamany, pęknięty, podzielony

indicate: wskazywać

insistence: naleganie, domaganie się

intelligence chief: szef wywiadu

landmark: epokowy, przełomowy

linchpin: podpora

mayhem: chaos, zamieszanie

oversee: nadzorować, kontrolować

pledge: obietnica

rally: zbierać się

stalemate: impas

underline: podkreślać

unprecedented: bezprecedensowy

urge: namawiać, nakłaniać

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