Embattled President Hosni Mubarak today offered to open "immediate talks" with opposition groups as pressure on him mounted from the powerful military which termed peoples' demands as "legitimate" and said it will not fire on protesters.
The offer came as tens of thousands of Egyptians started converging at the Tahrir Square - the hub of the anti- government demonstrations in the heart of Cairo - for their 'million man march' to force 82-year-old Mubarak to step down.
"President Hosni Mubarak has tasked me with opening immediate talks with the political forces to begin a dialogue around all the issues concerning constitutional and legislative reforms," newly appointed Vice President Omar Suleiman said on state television.
He said steps were underway to implement decisions of the appeals court contesting results of autumn legislative elections in certain constituencies, Al Arabia reported.
Suleiman also said the government would move to "deal as soon as possible with the priorities of fighting unemployment, poverty, corruption and reach the required balance between wages and prices."
Amid heavy presence of military and armoured vehicles on the streets in downtown Cairo, protesters waving placards reading 'down with Mubarak', 'Mubarak's game is over' spilled on the Tahrir Square.
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Identity cards of protesters were scrutinized by the army personnel before letting them into the square.
Sensing the strong public sentiments, the military made it clear that it was not out to crush today's mass anti-government protests and said their demands were "legitimate."
"To the great people of Egypt, your armed forces, acknowledging the legitimate rights of the people ... Have not and will not use force against the Egyptian people," the military said in a statement on state tv.
"Your armed forces, who are aware of the legitimacy of your demands and are keen to assume their responsibility in protecting the nation and the citizens, affirms that freedom of expression through peaceful means is guaranteed to everybody," the army statement said.
Facing the first serious challenge to his 30-year- rule, Mubarak has been hoping for the military backing to stem the tide against him.
In a desperate move to cling to power, Mubarak last night sacked his much-hated interior minister in a revamped cabinet and appointed a new intelligence chief to mollify opposition groups, but the protesters remained unmoved and stated that they would accept nothing less than his departure.
Mubarak also appointed top general Murad Mowafi, a former north Sinai governor, as the new intelligence chief.
Concerned over the fast-moving events in Egypt, the US has sent a diplomatic troubleshooter with close ties to the Arab nation on a mission to Cairo to meet President Mubarak and other senior officials.
Frank G Wisner, a former ambassador to Egypt, flew in here yesterday as questions were raised whether the US was using him as an emissary to persuade Mubarak to step down.
Stepping up their campaign, a coalition of opposition groups, including the outlawed Muslim Brotherhood, gave the President a Friday ultimatum to quit, as the death toll in eight days of violence crossed 150.
They rejected the new Cabinet dominated by regime veterans, and called for continued protests to ensure the fall of the crumbling regime.
Another million-strong march was also planned in the Mediterranean port city of Alexandria, as national train services were cancelled in an apparent bid to stymie protests, Al Jazeera reported.
The state-owned national carrier EgyptAir said it was cancelling all domestic and international flights from 3 pm to 8 am until further notice, coinciding with a curfew in Cairo, Alexandria and Suez, the Qatar-based channel reported.
The rally planned for today will mark a week since the start of the biggest anti-government protests in Egypt.
The protests broke out last Tuesday giving vent to peoples' anger over three decades of repression, rampant corruption, lack of democracy and good governance.
Meanwhile, many people are reported to be panic buying in Cairo amid the unrest.
"I walked into a supermarket and saw complete mayhem," an Al Jazeera correspondent said.
"People are stocking up on supplies as much as they can. There are very few rations available in the stores. They are running out of basic supplies, like eggs, cheese and meat. Deliveries have not been coming for days."
Chaos has also been reported at Cairo's international airport, where thousands of foreigners are attempting to be evacuated by their home countries.
Meanwhile, the authorities claimed that the turmoil in the country had not affected the passage of traffic through the famous Suez Canal.
The Canal, the strategic waterway that connects Europe to Asia, is functioning at "full capacity", a canal official told state media, as oil prices soared on fears supplies could be disrupted by the turmoil in Egypt.