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* Assembly votes through the night to approve constitution

* Mursi says no place for dictatorship

* Protesters rally in cities across Egypt

* Referendum on constitution may be held by mid-December

By Edmund Blair and Patrick Werr

CAIRO, Nov 30 (Reuters) – Tens of thousands of Egyptians

protested against President Mohamed Mursi on Friday after an

Islamist-led assembly raced through approval of a new

constitution in a bid to end a crisis over the Islamist leader’s

newly expanded powers.

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

Tahrir Square, echoing the chants that rang out in the same

place less than two years ago and brought down Hosni Mubarak.

Mursi said a decree halting court challenges to his

decisions, which sparked eight days of protests and violence by

Egyptians calling him a new dictator, was “for an exceptional

stage” and aimed to speed up the democratic transition.

“It will end as soon as the people vote on a constitution,”

he told state television while the constituent assembly was

still voting on a draft, which the Islamists say reflects

Egypt’s new freedoms. “There is no place for dictatorship.”

But the opposition cried foul. Liberals, leftists,

Christians, more moderate Muslims and others had withdrawn from

the assembly, saying their voices were not being heard.

Even in the mosque where Mursi said Friday prayers some

opponents chanted “Mursi: void” before sympathisers surrounded

him shouting in support, journalists and a security source said.

Tens of thousands gathered across the country, filling

Tahrir Square and hitting the streets in Alexandria and other

cities, responding to opposition calls for a big turnout. Rival

demonstrators clashed after dark in Alexandria and the Nile

Delta town of Al-Mahala Al-Kobra, some hurling rocks in anger.

An opposition leaflet distributed on Tahrir urged protesters

in Cairo to stay overnight before Saturday’s rallies by

Islamists; the Muslim Brotherhood and its allies said they would

avoid the square during their demonstrations backing Mursi.

The disparate opposition, which has struggled to compete

with well-organised Islamists, has been drawn together and

reinvigorated by the crisis. Tens of thousands had also

protested on Tuesday, showing the breadth of public anger.

POTENT MACHINE

But Islamists have a potent political machine and the United

States has looked on warily at the rising power of a group it

once kept at arms length now ruling a nation that has a peace

treaty with Israel and is at the heart of the Arab Spring.

Protesters said they would push for a ‘no’ vote in a

constitutional referendum, which could happen as early as

mid-December. If the new basic law were approved, it would

immediately cancel the president’s decree.

“We fundamentally reject the referendum and constituent

assembly because the assembly does not represent all sections of

society,” said Sayed el-Erian, 43, a protester in Tahrir and

member of a party set up by opposition figure Mohamed ElBaradei.

ElBaradei said in a statement the constitution had “lost

legitimacy” and called for ending the polarisation of Egypt.

The plebiscite on the constitution is a gamble based on the

Islamists’ belief they can mobilise voters again after winning

every election held since Mubarak was toppled in February 2011.

Despite the big numbers opposed to him, Mursi can count on

backing from the disciplined Brotherhood and Islamist allies, as

well as many Egyptians who are simply exhausted by the turmoil.

“He just wants us to move on and not waste time in

conflicts,” said 33-year-old Cairo shopkeeper Abdel Nasser

Marie. “Give the man a chance and Egypt a break.”

But Mursi needs the cooperation of judges to oversee the

vote, and many have been angered by a decree from Mursi they

said undermined the judiciary. Some judges are on strike.

The assembly concluded the vote after a 19-hour session,

faster than many expected, approving all 234 articles of the

draft, covering presidential powers, the status of Islam, the

military’s role and human rights. {ID:nL5E8MU7HQ]

It introduces a presidential term limit of eight years –

Mubarak served for 30. It also bring in a degree of civilian

oversight over the military – though not enough for critics.

An Egyptian official said Mursi was expected to approve the

document on Saturday and then has 15 days to hold a referendum.

“This is a revolutionary constitution,” said Hossam

el-Gheriyani, head of the assembly, urging members to campaign

for the new constitution across Egypt, after the all-night

session.

DEEPENING DIVISIONS

Critics argue it is an attempt to rush through a draft they

say has been hijacked by the Muslim Brotherhood, which backed

Mursi for president in a June election, and its Islamist allies.

Two people have been killed and hundreds injured in protests

since the decree was announced on Nov. 22, deepening the divide

between the newly empowered Islamists and their critics.

Seeking to placate opponents, Mursi welcomed criticism but

said there was no place for violence. “I am very happy that

Egypt has real political opposition,” he told state television.

He said Egypt needed to attract investors and tourists. The

crisis threatens to derail a fragile economic recovery after two

years of turmoil. Egypt is waiting for the International

Monetary Fund to finalise a $4.8 billion loan to help it out.

An alliance of opposition groups pledged to keep up protests

and said broader civil disobedience was possible to fight what

it described as an attempt to “kidnap Egypt from its people”.

Several independent newspapers said they would not publish

on Tuesday in protest. One of the papers also said three private

satellite channels would halt broadcasts on Wednesday.

The draft injects new Islamic references into Egypt’s system

of government but keeps in place an article defining “the

principles of sharia” as the main source of legislation – the

same phrase found in the previous constitution.

The president can declare war with parliament’s approval,

but only after consulting a national defence council with a

heavy military and security membership. That was not in the old

constitution, used when Egypt was ruled by ex-military men.

Critics highlighted other flaws, such as articles pertaining

to the rights of women and freedom of speech.

A new parliamentary election cannot be held until a new

constitution is passed. Egypt has been without an elected

legislature since a court order the dissolution of the

Islamist-dominated lower house in June.