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* Tahrir Square rally a show of strength for fractious

opposition

* Death toll since Mursi empowerment decree rises to two

* Leftists, liberals, others want decree scrapped

* Muslim Brotherhood cancels rival protest

By Tamim Elyan

CAIRO, Nov 27 (Reuters) – Tens of thousands of Egyptians

rallied on Tuesday against President Mohamed Mursi in one of the

biggest outpourings of protest since Hosni Mubarak’s overthrow,

accusing the Islamist leader of seeking to impose a new era of

autocracy.

Police fired tear gas at stone-throwing youths in streets

near the main protest in Cairo’s Tahrir Square, heart of the

uprising that toppled Mubarak last year. Clashes between Mursi’s

opponents and supporters erupted in a city north of Cairo.

But violence could not overshadow the show of strength by

the normally divided opponents of Islamists in power, posing

Mursi with the biggest challenge in his five months in office.

“The people want to bring down the regime,” protesters in

Tahrir chanted, echoing slogans used in the 2011 revolt.

Protesters also turned out in Alexandria, Suez, Minya and

other Nile Delta cities.

Tuesday’s unrest by leftists, liberals and other groups

deepened the worst crisis since the Muslim Brotherhood

politician was elected in June, and exposed the deep divide

between the newly empowered Islamists and their opponents.

A 52-year-old protester died after inhaling tear gas in

Cairo, the second death since Mursi last week issued a decree

that expanded his powers and barred court challenges to his

decisions.

Mursi’s administration has defended the decree as an effort

to speed up reforms and complete a democratic transformation in

the Arab world’s most populous country.

“Calls for civil disobedience and strikes will be dealt with

strictly by law and there is no retreat from the decree,”

Refa’a Al-Tahtawy, Mursi’s presidential chief of staff, told the

Al-Hayat private satellite channel.

But opponents say Mursi is behaving like a modern-day

pharaoh, a jibe once levelled at Mubarak. The United States, a

benefactor to Egypt’s military, has expressed concern about more

turbulence in a country that has a peace treaty with Israel.

“We don’t want a dictatorship again. The Mubarak regime was

a dictatorship. We had a revolution to have justice and

freedom,” 32-year-old Ahmed Husseini said in Cairo.

The fractious ranks of Egypt’s non-Islamist opposition have

been united on the street by crisis, although they have yet to

build an electoral machine to challenge the well-organised

Islamists, who have beaten their more secular-minded rivals at

the ballot box in two elections held since Mubarak was ousted.

MISCALCULATION

“There are signs that over the last couple of days that

Mursi and the Brotherhood realised their mistake,” said Elijah

Zarwan, a fellow with The European Council on Foreign Relations.

He said the protests were “a very clear illustration of how much

of a political miscalculation this was”.

Mursi’s move provoked a rebellion by judges and has battered

confidence in an economy struggling after two years of turmoil.

The president still must implement unpopular measures to rein in

Egypt’s crushing budget deficit – action needed to finalise a

deal for a $4.8 billion International Monetary Fund loan.

Some protesters have been camped out since Friday in Tahrir

and violence has flared around the country, including in a town

north of Cairo where a Muslim Brotherhood youth was killed in

clashes on Sunday. Hundreds have been injured.

Supporters and opponents of Mursi threw stones at each other

and some hurled petrol bombs in the Delta city of el-Mahalla

el-Kubra. Medical sources said almost 200 people were injured.

“The main demand is to withdraw the constitutional

declaration (decree). This is the point,” said Amr Moussa, a

former Arab League chief and presidential candidate who has

joined the new opposition coalition, the National Salvation

Front. The group includes several top liberal politicians.

Some scholars from the prestigious al-Azhar mosque and

university joined Tuesday’s protest, showing that Mursi and his

Brotherhood have alienated some more moderate Muslims. Members

of Egypt’s large Christian minority also joined in.

Mursi formally quit the Brotherhood on taking office, saying

he would be a president for all Egyptians, but he is still a

member of its Freedom and Justice Party.

The decree issued on Thursday expanded his powers and

protected his decisions from judicial review until the election

of a new parliament, expected in the first half of 2013.

In Washington, White House spokesman Jay Carney urged

demonstrators to behave peacefully.

“The current constitutional impasse is an internal Egyptian

situation that can only be resolved by the Egyptian people,

through peaceful democratic dialogue,” he told reporters.

New York-based Human Rights Watch said the decree gives

Mursi more power than the interim military junta from which he

took over.

U.N. Secretary-General Ban Ki-moon told an Austrian paper he

would encourage Mursi to resolve the issue by dialogue.

DECREE’S SCOPE DEBATABLE

Trying to ease tensions with judges, Mursi assured Egypt’s

highest judicial authority that elements of his decree giving

his decisions immunity applied only to matters of “sovereign”

importance. That should limit it to issues such as declaring

war, but experts said there was room for interpretation.

In another step to avoid more confrontation, the Muslim

Brotherhood cancelled plans for a rival mass rally in Cairo on

Tuesday to support the decree. Violence has flared in Cairo in

the past when both sides have taken to the streets.

But there has been no retreat on other elements of the

decree, including a stipulation that the Islamist-dominated body

writing a new constitution be protected from legal challenge.

“The decree must be cancelled and the constituent assembly

should be reformed. All intellectuals have left it and now it is

controlled by Islamists,” said 50-year-old Noha Abol Fotouh.

With its popular legitimacy undermined by the withdrawal of

most of its non-Islamist members, the assembly faces a series of

court cases from plaintiffs who say it was formed illegally.

Mursi issued the decree on Nov. 22, a day after he won U.S.

and international praise for brokering an end to eight days of

violence between Israel and Hamas around the Gaza Strip.

Mursi’s decree was seen as targeting in part a legal

establishment still largely unreformed from Mubarak’s era, when

the Brotherhood was outlawed.

Though both Islamists and their opponents broadly agree that

the judiciary needs reform, Mursi’s rivals oppose his methods.

Rulings from an array of courts this year have dealt a

series of blows to the Brotherhood, leading to the dissolution

of the first constitutional assembly and the lower house of

parliament elected a year ago. The Brotherhood dominated both.

The judiciary blocked an attempt by Mursi to reconvene the

Brotherhood-led parliament after his election victory. It also

stood in the way of his attempt to sack the prosecutor general,

another Mubarak holdover, in October.

In his decree, Mursi gave himself the power to sack that

prosecutor and appoint a new one. In open defiance of Mursi,

some judges are refusing to acknowledge that step.