ISLAMABAD, 
              Pakistan (AP) -- President Gen. Pervez Musharraf faces a stern warning 
              from a top American diplomat on Saturday: end emergency rule or 
              wreck landmark elections and risk undermining vital U.S. support. 
               
              Musharraf made concessions ahead of Deputy Secretary of State John 
              Negroponte's arrival Friday, allowing independent TV news back on 
              the air and freeing opposition leaders and a respected U.N. rights 
              expert. 
               
              But he also pushed ahead with plans for parliamentary elections 
              in January, swearing in a caretaker government and defending his 
              record since seizing power in a 1999 coup. 
               
              ''I take pride in the fact that, being a man in uniform, I have 
              actually introduced the essence of democracy in Pakistan -- whether 
              anyone believes it or not,'' a solemn-looking Musharraf said after 
              a low-key ceremony at the presidential palace. 
               
              Negroponte touched down hours later and spoke by phone with opposition 
              leader Benazir Bhutto, the highest-level U.S. contact with the former 
              prime minister since Musharraf imposed a state of emergency Nov. 
              3. 
               
              ''He wanted to hear from her how she viewed the political situation 
              in Pakistan,'' State Department spokesman Sean McCormack said. 
               
              He said Negroponte's call to Bhutto ''sends a very clear message 
              that we intend to talk to and continue our contacts with members 
              of Pakistan's political leadership and political civil society.'' 
               
              U.S. contacts with Bhutto have been handled by U.S. Ambassador Anne 
              Patterson and the consul-general in the eastern city of Lahore, 
              where Bhutto had been confined to her home. She was freed Friday 
              from three days of house arrest imposed to stop her from leading 
              protests. 
               
              McCormack said he did not expect Negroponte to meet Bhutto in person, 
              saying ''it's just a little bit easier to have a phone call, you 
              don't have a media circus outside and you can actually have probably 
              more relaxed conversation.'' 
              Negroponte, who is expected to speak to Musharraf on Saturday, arrived 
              from a stop in Africa, where he said that the democratic process 
              in Pakistan had been ''derailed.'' 
               
              ''Our message is that we want to work with the government and people 
              of Pakistan and the political actors in Pakistan to put the political 
              process back on track as soon as possible,'' Negroponte said. 
               
              Under domestic pressure for relying too heavily on Musharraf, Washington 
              appears increasingly exasperated with a man that President Bush 
              has long defended as a stalwart ally against international terrorism. 
               
              The White House has called for him to lift the emergency immediately 
              or destroy the credibility of parliamentary elections. 
              The crisis has also estranged Musharraf from Bhutto, a secular, 
              pro-Western leader who had been expected to join forces with Musharraf 
              if she fared well in the election. 
               
              Along with Bhutto, police freed two leaders of hard-line Islamic 
              parties, along with Asma Jehangir, head of Pakistan's main human 
              rights organization and a U.N. rights expert. 
              Bhutto, who leads Pakistan's largest opposition party, immediately 
              reiterated her call for Musharraf to quit power, and said his sidelining 
              of moderate opponents had allowed the rise of Islamic extremism. 
               
              She is calling for opposition parties to unite and maybe boycott 
              the elections. 
              ''Do we want to deny this nation its true legitimate leadership 
              and make way ... for extremist forces?'' she asked reporters in 
              Lahore. ''The West's interests lie in a democratic Pakistan.'' 
               
              Patrick Cronin, an analyst at the International Institute of Strategic 
              Studies in London, said Washington still hoped to persuade Musharraf 
              to end the emergency and allow free elections ''so they don't have 
              to face the prospect of watching him go sooner rather than later.'' 
              He said U.S. officials were keen to avoid the embarrassment of dropping 
              a man whose authoritarian rule they have long defended because of 
              his help in Afghanistan and against al-Qaida, but also had to be 
              seen to stand up for democracy. 
              The military is increasingly unhappy with Musharraf's alienation 
              of Western backers and Pakistan's political parties and could yet 
              force him out, Cronin said. 
               
              Musharraf ''got a free ride because of 9/11 and that free ride is 
              over,'' he said. However, Western governments ''don't see an easy 
              alternative in terms of how to make the transition because ultimately 
              it's the Pakistan army and elite that are going to make this call.'' 
               
              Musharraf told The Associated Press on Wednesday that he expects 
              to relinquish his role as army chief this month but stay on as a 
              civilian president. 
               
              On Friday, he swore in an interim government headed by loyalist 
              former Senate chairman Mohammedmian Soomro. Parliament was dissolved 
              Thursday after completing its five-year term. The caretakers will 
              manage the country until elections due by Jan. 9. 
              ''I hope and pray that the new Cabinet and new prime minister, in 
              these difficult times, functions with only one thing in mind: Pakistan 
              comes first,'' Musharraf said. 
               
              In the northwestern city of Peshawar on Friday, police used tear 
              gas and batons to break up a rally by 500 supporters of a coalition 
              of religious parties and detained several of their leaders. The 
              groups staged smaller rallies in Islamabad and the southern city 
              of Karachi. 
               
              ------ 
              Associated Press writers Munir Ahmad in Islamabad, Zarar Khan in 
              Lahore, Riaz Khan in Peshawar, Ashraf Khan in Karachi and Matthew 
              Lee in Washington contributed to this report. 
                
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