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Egyptian authorities arrested 401 people over the Monday night clashes, nearly two weeks after the army removed Morsi in a coup.
Interim Prime Minister Hazem el-Beblawi is forming a government to lead Egypt through a "road map" to restore full civilian rule and to tackle a chaotic economy, although a new minister said aid from Saudi Arabia and the United Arab Emirates meant Cairo did not need to resume talks on a long-delayed IMF loan.
The coup against Morsi’s government has bitterly divided Egypt, with thousands of his supporters maintaining a vigil in a Cairo square to demand his return, growing to tens of thousands for mass demonstrations every few days.
Two people were killed at a bridge in central Cairo where police and local Morsi opponents clashed with some of his supporters who were blocking a route across the River Nile overnight. Another five were killed in the Cairo district of Giza, said the head of emergency services, Mohamed Sultan.
On Saturday, several Egyptian MPs in the disbanded upper house of parliament also rejected the ouster of Morsi, the country's first democratically elected president, in the military coup.
Speaking at a public rally organized by the Muslim Brotherhood in Cairo, some two dozen members of the Shura Council demanded the army reinstate Morsi, and called on other legislatures across the world not to recognize Egypt’s new military-appointed administration.
They rejected the legality of any action taken following what they called a military coup d’état against the elected president -- including the dissolution of the parliament.
In a televised speech late on July 3 night, Egyptian army chief General Abdel Fattah al-Sisi announced that Morsi, a former leading member of the Muslim Brotherhood, was no longer in office and declared that the head of the Supreme Constitutional Court, Adly Mahmoud Mansour, had been appointed as the new interim president of Egypt. The army also suspended the constitution.
Morsi is being held incommunicado at an undisclosed location. He has not been charged with a crime but the authorities say they are investigating him over complaints of inciting violence, spying and wrecking the economy. Scores of Morsi supporters were rounded up after violence last week.
A week of relative calm had suggested peace might be returning, but that was shattered by the street battles into the early hours of Tuesday morning, the bloodiest since more than 50 Morsi supporters were killed a week ago.
"We were crouched on the ground, we were praying. Suddenly there was shouting. We looked up and the police were on the bridge firing tear gas down on us," said pro-Morsi protester Adel Asman, 42, who was coughing, spitting and pouring Pepsi on his eyes to ease the effect of tear gas.
By sunrise calm had returned. The unrest is more localized than in the days after Morsi was toppled when 92 people died, but Egyptians still worry about the authorities' ability to restore order.
The violence took place on the Monday night of a two-day visit by U.S. Deputy Secretary of State William Burns, the first senior Washington official to arrive in Cairo since the army's takeover.
Washington, which supports Egypt with $1.5 billion a year mainly for its military, has so far avoided saying whether it regards the military action as a "coup", language that would require it to halt aid.
The United States was never comfortable with the rise of Morsi's Muslim Brotherhood but had defended his legitimacy as Egypt's first elected leader. Its position has attracted outrage from both sides, which accuse it of meddling in Egypt's affairs.
"Only Egyptians can determine their future," Burns told reporters at the U.S. Embassy. "I did not come with American solutions. Nor did I come to lecture anyone. We will not try to impose our model on Egypt."
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