The chances for a negotiated end to Egypt's political crisis looked to have hit the rocks this week with the army-installed government reportedly ready to declare that foreign mediation efforts had failed.

State-run Al-Ahram newspaper, citing official sources, said the government would make an announcement to that effect soon.

It would also declare that Muslim Brotherhood protests against the Army's overthrow of President Mohamed Mursi were non-peaceful - a signal that the government intends to end them by force.

The report appeared hours after two senior US senators on a mediation mission said they considered Mursi's removal to have been a military coup - causing an uproar in the Egyptian media and drawing a strong riposte from the acting president.

The Republican senators - Lindsey Graham and John McCain - also called on the military to release political prisoners and start a national dialogue to return Egypt to democratic rule.

State television cited acting President Adly Mansour as calling McCain's comments “an unacceptable interference in internal policies”.

Many Egyptian private TV stations' talk shows also reacted furiously. Lamis Al-Hadid of CBC TV called them a “big insult to Egypt and its people”.

 Egypt has been in turmoil since Mursi's overthrow on July 3, following huge demonstrations against his rule.

The country's first freely elected President, Mursi is now being detained at an undisclosed location and thousands of his supporters remain camped out at two protest sites in Cairo.

Envoys from the US, the European Union, Qatar and the UAE have been pushing to resolve the crisis and avert further bloodshed between Mursi's backers and the Security Forces.

But the Al-Ahram report dashed hopes of a breakthrough, with the government casting the blame on what it called the intransigence of Mursi's Muslim Brotherhood.

The newspaper said the interim government would announce “the failure of all US, European, Qatari and UAE delegations in convincing the Brotherhood of a peaceful solution to the current crisis”.

The government had allowed the envoys to visit jailed Brotherhood leaders in order to give a peaceful solution a chance. But it now considered Mursi's overthrow a fait accomplice and would proceed with its own “road map” for elections in nine months, Al-Ahram said.

The latest developments made for a remarkable end to Graham and McCain's mission, undertaken at US President Barack Obama's request to help resolve the crisis in a country that is instrumental in Washington's Middle East policy.

After meeting Army Chief General Abdel Fattah Al-Sisi, interim Vice President Mohamed ElBaradei and interim Prime Minister Hazem el-Beblawi, Graham told a news conference: “The people who are in charge were not elected. The people who were elected are in jail. The status quo is not acceptable.”

They had also appealed to the Brotherhood, many of whose leaders have been jailed, including Mursi, to avoid resorting to violence and to join the dialogue. But it was the description of Mursi's overthrow as a coup that hit a raw Egyptian nerve.

The word coup, which US officials had studiously avoided, could under US law trigger a cutoff of the $1.3 billion U.S. military aid Egypt receives each year.

However McCain did say that "cutting off aid would be the wrong signal at the wrong time."

Source: Reuters