U.S. urges restraint in Egypt, says government stable

WASHINGTON (Reuters) - The United States on Tuesday urged all sides in Egypt to refrain from violence following clashes between security forces and demonstrators inspired by the revolt that toppled Tunisia's president this month.

Secretary of State Hillary Clinton also said the United States believed the government of Egyptian President Hosni Mubarak, in power for three decades, was stable and was looking for ways to meet the Egyptian people's needs.

As the first Arab state to make peace with Israel, Egypt has much greater strategic importance to the United States than Tunisia, has long received significant U.S. aid and supported Washington's efforts to promote wider Israeli-Arab peace.

While U.S. President George W. Bush at times strongly pressed Egypt to respect human rights and hold free and fair elections, his administration later softened its rhetoric and President Barack Obama has continued the softer tone.

Speaking to reporters, Clinton was measured in her comments about the protests in Cairo, where police fired teargas and used water cannon against protesters who shouted "Down, down, Hosni Mubarak" and hurled bottles and rocks.

"We support the fundamental right of expression and assembly for all people and we urge that all parties exercise restraint and refrain from violence," Clinton said in a comment addressed as much to the government as the protesters.

"Our assessment is that the Egyptian government is stable and is looking for ways to respond to the legitimate needs and interests of the Egyptian people," she added during a news conference with Spanish Foreign Minister Trinidad Jimenez.

The revolt in Tunisia has thrown up questions about the stability of other Arab governments and initially dragged down equity, bond and foreign exchange prices in parts of the region, notably Egypt.

Tunisia's veteran strongman Zine al-Abedine Ben Ali was swept from power on January 14 after weeks of protests.

The United States was initially circumspect in its comments on Tunisia, but after clashes between protesters and security forces left dozens of people dead, Obama issued a statement to "condemn and deplore" the use of violence against peaceful protesters.

U.S. officials and analysts have suggested Washington is likely to tread lightly in using Tunisia's example to argue that other Arab regimes should open up.

Some officials said Arab rulers might draw the opposite lesson from Tunisia's unrest -- that they should crack down hard at the first sign of protests.

(Reporting by Arshad Mohammed and Andrew Quinn, editing by Christopher Wilson)