Egyptian opposition to shun Mursi's national dialogue

CAIRO (Reuters) - Prime Minister Mohamed Mursi was expected to press ahead on Saturday with talks on ways to end Egypt's worst crisis since he took office even though the country's main opposition leaders have vowed to stay away.

Cairo and other cities have been rocked by violent protests since November 22, when Mursi promulgated a decree awarding himself sweeping powers that put him above the law.

The upheaval in the most populous Arab nation, following the fall of Hosni Mubarak last year, worries the West, in particular the United States, which has given it billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

Mursi's deputy raised the possibility that a referendum set for December 15 on a new constitution opposed by liberals might be delayed. But the concession only goes part-way towards meeting the demands of the opposition, who also want Mursi to scrap the decree awarding himself wide powers.

On Friday, large crowds of protesters surged around the presidential palace, breaking through barbed wire barricades and climbing on tanks guarding the seat of Egypt's first freely elected president, who took office in June.

As the night wore on, tens of thousands of opposition supporters were still at the palace, waving flags and urging Mursi to "Leave, leave".

"AS LONG AS IT TAKES"

"We will stay here for as long as it takes and will continue to organize protests elsewhere until President Mursi cancels his constitutional decree and postpones the referendum," said Ahmed Essam, 28, a computer engineer and a member of the liberal Dostour party.

Vice President Mahmoud Mekky issued a statement saying the president was prepared to postpone the referendum if that could be done without legal challenge.

Mursi's planned dialogue meeting was expected to go ahead on Saturday in the absence of most opposition factions. "Everything will be on the table," a presidential source said.

Mursi could be joined by some senior judiciary figures and politicians such as Ayman Nour, one of the candidates in Mubarak's only multi-candidate presidential race, in 2005, in which he was unsurprisingly trounced.

The opposition has demanded that Mursi rescind the decree giving himself wide powers and delay the vote set for December 15 on a constitution drafted by an Islamist-led assembly which they say fails to meet the aspirations of all Egyptians.

EXPAT VOTE DELAYED

The state news agency reported that the election committee had postponed the start of voting for Egyptians abroad until Wednesday, instead of Saturday as planned. It did not say whether this would affect the timing of voting within Egypt.

Ahmed Said, leader of the liberal Free Egyptians Party, told Reuters that delaying expatriate voting was intended to seem like a concession but would not change the opposition's stance.

The opposition organized marches converging on the palace which Republican Guard units had ringed with tanks and barbed wire on Thursday after violence between supporters and opponents of Mursi killed seven people and wounded 350.

Islamists, who had obeyed a military order for demonstrators to leave the palace environs, held funerals on Friday at Cairo's al-Azhar mosque for six Mursi partisans who were among the dead.

"With our blood and souls, we sacrifice to Islam," they chanted.

A group led by leftist opposition leader Hamdeen Sabahy has called for an open-ended protest at the palace.

Some pro-Mursi demonstrators gathered in a mosque not far from the palace, but said they would not march towards the palace to avoid a repeat of the violence that took place on Wednesday night.

In a speech late on Thursday, Mursi had refused to retract his decree or cancel the referendum on the constitution, but offered talks on the way forward after the referendum.

The National Salvation Front, the main opposition coalition, said it would not join the dialogue. The Front's coordinator, Mohamed ElBaradei, a Nobel peace laureate, dismissed the offer as "arm-twisting and imposition of a fait accompli".

ElBaradei said that if Mursi were to scrap the decree with which he awarded himself extra powers and postpone the referendum "he will unite the national forces".

Murad Ali, spokesman for the Muslim Brotherhood's Freedom and Justice Party, said opposition reactions were sad: "What exit to this crisis do they have other than dialogue?" he asked.

(Additional reporting by Omar Fahmy; Writing by Giles Elgood; Editing by Michael Roddy)

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Football: Avramovic on the offensive

SINGAPORE: After bearing the brunt of criticism following Singapore's early exit from the last edition of the ASEAN Football Federation Suzuki Cup two years ago, Lions coach Radojko Avramovic has kept the local media at arm's length during this year's campaign.

It thus came as a surprise yesterday that Avramovic chose to go on the offensive during the official pre-match media conference in Manila ahead of Saturday's semi-final first leg match against the Philippines.

The 63-year-old took aim at the hosts, who have never won the competition but have reached the semi-finals for a second tournament running and are hosting a final-four match at home for the first time.

"I just feel a little bit that maybe the Philippines should respect Singapore more," said Avramovic at the Manila Hotel. "Singapore are two-time winners of this competition, and (the Philippines) shouldn't be going around talking like maybe they will have it easy against Singapore."

And for good measure, the Lions coach added: "It's in our hands to make them wait another two years to dream (of winning the competition)."

Those remarks appeared to have caught Philippines coach Michael Weiss by surprise. The 47-year-old German did not attend the media conference - team manager Dan Palami went in his stead - and was later asked at the Azkals' training session for his response.

"He has every right to be confident but why would I respect an opponent only because he has titles in the past?" said Weiss.

"Does that mean I automatically have to bend down and say 'Please, Singapore, you win this match and you go to the final'?

"Of course not, it's ridiculous... not this comment is ridiculous but I don't know which idea he has."

Adding in bemusement, Weiss said: "I mean, here we are on home soil and if Singapore are stronger and beat us 3-0, I will shake his hand and say congratulations. But before that, they will have to sweat a lot. I don't understand this comment."

The Rizal Memorial Stadium is expected to fill to its capacity of 13,000 as the Azkals seek to beat the Lions for the third time this year. Although the first two matches were friendlies, Weiss feels the defeats will play on the Singapore players' minds.

"From a psychological point of view, if you lose two matches in a row to a team which you are in a way under-estimating... in the back of their heads they will still count a little bit for sure," he said.

"We are maybe a little bit more hungry and eager to win this tight game, I hope we do not concede a goal and everything will be good."

Avramovic, meanwhile prefers to come away with a win, even though many would expect the Lions to play for a draw.

"This is like two 90-minute halves with a long break in between. I think in the end, whoever is more patient and maybe more experienced will end up the winners," he said.

- TODAY

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Maldives must rein in quarters harming bilateral ties, India says

NEW DELHI: Amid a diplomatic row over cancellation of the GMR contract, India on Friday asked Maldives to control any quarters which may be trying to harm bilateral relations saying the issue should not put a "question mark" on the ties between the two sides.

"If they have to take a decision in interest of their society and country and if that decision is taken properly as per laws there, what objections can anyone have there. We would want that whatever is the decision, it should not put any question marks on our friendly relations," external affairs minister Salman Khurshid said. The minister was asked to comment on the developments in the GMR issue outside Parliament house complex.

"If any quarters there (in Maldives) want that our relations should be harmed, then they should be controlled. I think Maldives and its people know this thing properly and I am sure that they will do the same thing," Khurshid said. Asked if the Indian Government would "intervene" in the issue, the minister said, "For commercial enterprises no one intervenes, but we have been assured about the security and safety of our citizens and interests there.

To that extent, it is our right and we have also told them about this right." "On the commercial discussions, we don't have the right and there is no justification for it. Try to understand the issue in right context and I think there is nothing to worry about," he said.

In a surprise move on November 27, Maldives terminated the over $500 million contract awarded to GMR during the previous regime of Mohamed Nasheed to upgrade its Male airport and to build a new terminal. pti

Govt allows Maldives airline to fly via India

This is as ironic as it gets. While Maldives has terminated its contract with Bangalore-based infra major GMR to run the Male airport, its national airline's international plans bank solely on India. Maldivian Airline, the national carrier of Maldives, had recently announced flights to Mumbai and Chennai from mid-November. Not only that, India had allowed it to fly to Bangladesh by extending the India sector of the flight. "It will be the first long haul flight of the airline and will operate (Airbus) A-320 aircraft as Q2-550 (Male-Chennai-Dhaka)," Bandhu Ibrahim Saleem, chairman of island aviation services that owns Maldivian, had recently told TOI. "Saarc members allow their airlines to fly from one country to another (while referring to the Male-Chennai-Dhaka flight)," he said.

Now it remains to be seen if India retaliates by relooking at this permission. The aviation ministry says it will act as per the stand taken by the ministry of external affairs. "The cancellation of the $511-million Male airport contract with Male has come as a setback in our ties. If asked by MEA, we will take the required steps about Maldivian's clearance," said a senior official. The airport company of Maldives is set to take over the Male airport from GMR on Friday midnight.

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Celebrations planned as Wash. legalizes marijuana

SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.

Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.

Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."

Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.

Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.

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Johnson can be reached at https://twitter.com/GeneAPseattle

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Bodies Believed to Be Missing Iowa Cousins

Authorities believe two bodies found by hunters in Iowa this week are Lyric Cook and Elizabeth Collins, two young cousins who vanished in July.

"At this time, law enforcement is confident, based upon evidence at the scene and preliminary investigation, that the bodies are those of Lyric Cook and Elizabeth Collins," Capt. Rick Abben, chief deputy of the Black Hawk County Sheriff's Office, said at a news conference in Evansdale, Iowa.

Asked why authorities were so confident that the bodies were those of the two girls, Abben replied, "We have no one else that's missing in this area. We have two bodies that were found. They were smaller in stature so we have nothing else to think, at this time."

Abben noted that the state's medical examiner's office in Ankeny, Iowa, had yet to complete the positive identification of the girls.

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Asked if the kidnapping investigation was now turning into a homicide investigation, Abben replied, "We are looking that way at this time."

Lyric, 11, and Elizabeth, 9, went missing on July 13 on a bike ride in the small town of Evansdale, Iowa, near Waterloo, Iowa. After hunters found two bodies in a wooded area in Seven Bridges Conservation Area on Wednesday afternoon, the families of Lyric and Elizabeth were notified and the bodies were sent to Ankeny for positive identification.

The families expressed "their gratitude to the community for their ongoing support," according to a statement released by authorities. Elizabeth's mother, Heather Collins, later posted a message on her Facebook page.

"We knew when our girls went missing that [there] would be two outcomes," she wrote. "Unfortunately this is not the one that we wanted but we know our girls [are] dancing with our savior. We know that he will continue to be with us giving us strength and comfort always."

On Wednesday night, residents of Evansdale, Iowa, gathered at Meyers Lake -- where the girls' bicycles and a purse were found -- for a candlelight vigil.

"It's hard to believe," said Lorissa Wilson, who attended the vigil. "I didn't want it to happen to the girls. They're too young to pass away, I believe."

Mary Carroll, who knew Elizabeth, said, "You don't expect it for somebody so sweet and innocent."

Another participant at the vigil, Holly Timmerman, noted that this was "not the outcome anybody wanted at all."

The Seven Bridges Conservation Area will remain closed until Monday, Abben said.

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Egypt demonstrators reject Mursi call for dialogue

CAIRO (Reuters) - Demonstrators rejected a call from Egypt's Islamist President Mohamed Mursi for a national dialogue after deadly clashes around his palace, demanding the "downfall of the regime" - the chant that brought down Hosni Mubarak.

Mursi said in a televised speech late on Thursday that plans were on track for a referendum on a new constitution on December 15 despite clashes that killed seven people. He proposed a meeting on Saturday with political leaders, "revolutionary youth" and legal figures to discuss the way forward after that.

But a leading activist group rejected the offer, and fresh demonstrations were called for Friday.

The "April 6" movement, which played a prominent role in igniting the revolt against Mubarak said on its Facebook page that Friday's protests would deliver a "red card" to Mursi.

Egypt has been plunged into turmoil since Mursi issued a decree on November 22 awarding himself wide powers and shielding his decisions from judicial review.

His Islamist supporters say the decree was necessary to prevent Mubarak-era judges from interfering with reforms. A constitution drawn up by a body dominated by Islamists is due to be put to a referendum next week.

The opposition has demanded that Mursi scrap his decree, postpone the referendum and redraft the constitution.

In his address, Mursi said: "I call for a full, productive dialogue with all figures and heads of parties, revolutionary youth and senior legal figures to meet this Saturday."

Several thousand opposition protesters near the palace waved their shoes in derision after his speech and shouted "Killer, killer" and "We won't go, he will go" - another of the slogans used against Mubarak in last year's revolt.

The Cairo headquarters of the Muslim Brotherhood, the group that propelled Mursi to victory in a June election, was set ablaze. Other offices of its political party were attacked.

TENTATIVE CONCESSION

The United States, worried about the stability of an Arab partner which has a peace deal with Israel and which receives $1.3 billion a year in U.S. military aid, had urged dialogue.

Mursi said his entire decree would lapse after the constitutional referendum, regardless of its result.

He said a new constituent assembly would be formed to redraft the constitution if Egyptians rejected the one written in the past six months.

The Republican Guard, an elite unit whose duties include protecting the presidential palace, restored peace on Thursday after a night of violence outside the palace, ordering rival demonstrators to leave by mid-afternoon.

Mursi supporters withdrew, but opposition protesters remained, kept away by a barbed wire barricade guarded by tanks. By evening their numbers had swelled to several thousand.

Thousands of supporters and opponents of Mursi had fought well into Thursday's early hours, using rocks, petrol bombs and guns. Officials said 350 were wounded in the violence. Six of the dead were Mursi supporters, the Muslim Brotherhood said.

Opposition groups have called for protests after Friday prayers aimed at "the downfall of the militia regime", a dig at what they see as the Brotherhood's organized street muscle.

A communique from a leftist group urged protesters to gather at mosques and squares across Egypt, and to stage marches in Cairo and its sister city Giza, converging on the presidential palace. "Egyptian blood is a red line," the communique said.

Hardline Islamist Salafis also summoned their supporters to protest against what they consider biased coverage of the crisis by some private Egyptian satellite television channels.

Since Mursi issued his decree, six of his advisers have resigned. Essam al-Amir, the director of state television, quit on Thursday, as did a Christian official at the presidency.

The Brotherhood's supreme guide, Mohamed Badie, called for unity, saying divisions "only serve the nation's enemies".

The Islamists, who have won presidential and parliamentary elections since Mubarak was overthrown, are confident they can win the referendum and the parliamentary election to follow.

As well as relying on his Brotherhood power base, Mursi may also tap into a popular yearning for stability and economic revival after almost two years of political turmoil.

Egypt's pound hit an eight-year low on Thursday, reversing gains made on hopes that a $4.8 billion IMF loan would stabilize the economy. The stock market fell 4.6 percent.

(Additional reporting by Edmund Blair and Marwa Awad; Writing by Alistair Lyon and Peter Graff; Editing by Louise Ireland)

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ECB forecast, rate hints send euro lower

NEW YORK: The euro only barely rebounded against the dollar in late trade Thursday, after plunging on the European Central Bank's sharp cut in its eurozone growth forecast for next year.

The euro lost more than one cent after the ECB forecast that the euro area economy will shrink by 0.3 percent in 2013, instead of growing by 0.5 percent as previously estimated.

Also pressing it lower were hints from the ECB that it might be moving toward cutting its benchmark rate, even as it held firm on Thursday.

"The ECB appears to have the door open for an interest rate cut, and we expect it to step through early in 2013," said Howard Archer at IHS Global Insight.

At 2200 GMT, the euro was at $1.2969, compared to $1.3064 late Wednesday. It hit a low of $1.2951 during the day.

There was nothing otherwise to budge the dollar, with trade mostly on hold for Friday's US jobs data for November, expected to be down due to Hurricane Sandy's impact on the economy of the northeast corridor.

If anything, the data will support expectations that the Federal Reserve will further extend its bond purchase stimulus program when it meets next week.

The yen picked up slightly, 10 days before national elections in Japan. It gained to 106.85 yen to the euro from 107.71, and 82.37 yen to the dollar from 82.42.

The dollar rose to 0.9325 Swiss francs, and the British pound slipped to $1.6050.

-AFP/ac

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'Time for India, Pak to stop blame game'

NEW DELHI: Pakistan senate chairman Syed Hussain Bokhari said here on Thursday that there was a wrong notion in India that relations with the neighbouring country improve only when a dictator is in power there.

Bukhari is leading a delegation of seven Pakistani senators—three of them Hindus—to India at the invitation of vice president Hamid Ansari on a goodwill visit aimed to "create better understanding" of each other.

"There is this misconception that only under a Pakistani dictator or military can relations improve with India," said Bokhari, shortly after his visit to both Houses of Parliament here. "It is under people's representatives accountable and answerable to the people that Pakistan and India have embarked on a reengagement process," he added.

"The democratic constitution of Pakistan had been polluted at times by dictators but the power now lies with Parliament and it shows the commitment of Pakistani leadership to strengthening parliamentary democracy," said Bokhari, adding that the civilian government is keen on having better ties with India.

Bokhari said that despite the "very unfortunate" Mumbai attacks; it was time for the two countries to stop making allegations and counter-allegations against each other to facilitate the ongoing process of reengagement between them.

"Allegations are not going to help; even in our country people talk about what India is doing in Balochistan or Kashmir or alleged violation of the Indus Water Treaty but it is not enough to merely agitate and not find solutions to issues," said Bokhari adding that Parliament in Pakistan had to "play the role of an oversight" in the functioning of the government.

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Study could spur wider use of prenatal gene tests

A new study sets the stage for wider use of gene testing in early pregnancy. Scanning the genes of a fetus reveals far more about potential health risks than current prenatal testing does, say researchers who compared both methods in thousands of pregnancies nationwide.

A surprisingly high number — 6 percent — of certain fetuses declared normal by conventional testing were found to have genetic abnormalities by gene scans, the study found. The gene flaws can cause anything from minor defects such as a club foot to more serious ones such as mental retardation, heart problems and fatal diseases.

"This isn't done just so people can terminate pregnancies," because many choose to continue them even if a problem is found, said Dr. Ronald Wapner, reproductive genetics chief at Columbia University Medical Center in New York. "We're better able to give lots and lots of women more information about what's causing the problem and what the prognosis is and what special care their child might need."

He led the federally funded study, published in Thursday's New England Journal of Medicine.

A second study in the journal found that gene testing could reveal the cause of most stillbirths, many of which remain a mystery now. That gives key information to couples agonizing over whether to try again.

The prenatal study of 4,400 women has long been awaited in the field, and could make gene testing a standard of care in cases where initial screening with an ultrasound exam suggests a structural defect in how the baby is developing, said Dr. Susan Klugman, director of reproductive genetics at New York's Montefiore Medical Center, which enrolled 300 women into the study.

"We can never guarantee the perfect baby but if they want everything done, this is a test that can tell a lot more," she said.

Many pregnant women are offered screening with an ultrasound exam or a blood test that can flag some common abnormalities such as Down syndrome, but these are not conclusive.

The next step is diagnostic testing on cells from the fetus obtained through amniocentesis, which is like a needle biopsy through the belly, or chorionic villus sampling, which snips a bit of the placenta. Doctors look at the sample under a microscope for breaks or extra copies of chromosomes that cause a dozen or so abnormalities.

The new study compared this eyeball method to scanning with gene chips that can spot hundreds of abnormalities and far smaller defects than what can be seen with a microscope. This costs $1,200 to $1,800 versus $600 to $1,000 for the visual exam.

In the study, both methods were used on fetal samples from 4,400 women around the country. Half of the moms were at higher risk because they were over 35. One-fifth had screening tests suggesting Down syndrome. One-fourth had ultrasounds suggesting structural abnormalities. Others sought screening for other reasons.

"Some did it for anxiety — they just wanted more information about their child," Wapner said.

Of women whose ultrasounds showed a possible structural defect but whose fetuses were called normal by the visual chromosome exam, gene testing found problems in 6 percent — one out of 17.

"That's a lot. That's huge," Klugman said.

Gene tests also found abnormalities in nearly 2 percent of cases where the mom was older or ultrasounds suggested a problem other than a structural defect.

Dr. Lorraine Dugoff, a University of Pennsylvania high-risk pregnancy specialist, wrote in an editorial in the journal that gene testing should become the standard of care when a structural problem is suggested by ultrasound. But its value may be incremental in other cases and offset by the 1.5 percent of cases where a gene abnormality of unknown significance is found.

In those cases, "a lot of couples might not be happy that they ordered that test" because it can't give a clear answer, she said.

Ana Zeletz, a former pediatric nurse from Hoboken, N.J., had one of those results during the study. An ultrasound suggested possible Down syndrome; gene testing ruled that out but showed an abnormality that could indicate kidney problems — or nothing.

"They give you this list of all the things that could possibly be wrong," Zeletz said. Her daughter, Jillian, now 2, had some urinary and kidney abnormalities that seem to have resolved, and has low muscle tone that caused her to start walking later than usual.

"I am very glad about it," she said of the testing, because she knows to watch her daughter for possible complications like gout. Without the testing, "we wouldn't know anything, we wouldn't know to watch for things that might come up," she said.

The other study involved 532 stillbirths — deaths of a fetus in the womb before delivery. Gene testing revealed the cause in 87 percent of cases versus 70 percent of cases analyzed by the visual chromosome inspection method. It also gave more information on specific genetic abnormalities that couples could use to estimate the odds that future pregnancies would bring those risks.

The study was led by Dr. Uma Reddy of the National Institute of Child Health and Human Development.

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Online:

Medical journal: http://www.nejm.org

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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WH 'Absolutely' Willing to Go Off Fiscal Cliff

President Obama's lead negotiator in the "fiscal cliff" talks said the administration is "absolutely" willing to allow the package of deep automatic spending cuts and across-the-board tax hikes to take effect Jan. 1, unless Republicans drop their opposition to higher income tax rates on the wealthy.

Treasury Secretary Timothy Geithner said in an interview with CNBC that both sides are "making a little bit of progress" toward a deal to avert the "cliff" but remain stuck on Obama's desired rate increase for the top U.S. income-earners.

"There's no prospect for an agreement that doesn't involve those rates going up on the top two percent of the wealthiest," Geithner said.

Most House Republicans, including Speaker John Boehner, remain opposed to any increase in tax rates.

Obama and Boehner spoke by phone this afternoon, their first conversation in exactly one week, an administration official said. Their relations have grown frosty in recent days as both sides have dug in on the issue of higher rates.

In separate appearances earlier today, Obama and Boehner publicly sparred over who's to blame for the standoff and what to do if lawmakers can't reach a broad deficit-reduction agreement in 27 days.

Kevin Dietsch/Getty Images

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Obama, speaking at a meeting of 100 CEOs, warned Republicans that he would not accept a so-called "doomsday" deal that extends tax cuts for middle-income earners before the end of the year but nothing more.

Such an approach, which has been under consideration by top Republicans as a likely scenario, would set the stage for a big battle over spending cuts and top tax rates in early 2013 – all tied to the nation's debt ceiling, which will need to be raised, which only Congress can do.

"That is a bad strategy for America, it's bad strategy for businesses," Obama said. "It's not a game I will play."

Brinksmanship over the a 2011 debt ceiling increase to avoid a U.S. default cost the country its AAA credit rating and rattled markets around the world.

While both sides say publicly that the U.S. will not default on its debt obligations, Republicans believe the issue could give them increased leverage for extracting cuts to entitlement programs and other spending.

Boehner said at a morning news conference that Obama has stifled the "fiscal cliff" negotiations by imposing the precondition that Republicans accept income tax hikes on the top 2 percent of U.S. earners.

"We're ready and eager to talk to the president and to work with him to make sure that the American people aren't disadvantaged by what's happening here in Washington," Boehner said at a morning news conference.

"We need a response from the White House," he said. "We can't sit here and negotiate with ourselves."

Earlier this week, House Republicans presented a $2.2 trillion deficit reduction package, including $800 billion in higher taxes through elimination of loopholes and deductions, slower annual cost-of-living increases for Social Security benefits and a higher eligibility age for Medicare.

The plan contrasts sharply with the White House proposal, which calls for $1.6 trillion in new tax revenue -- largely from higher rates on upper-income earners -- modest unspecified savings from Medicare and a new burst of economic stimulus spending.

Both sides rejected the opposing plan as "unserious."

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