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August 23, 2014 AT 7:59 AM
A government source told Reuters that Yemen's government offered on Saturday to resign within a month and to review an unpopular decision to cut fuel subsidies, in an attempt to end protests by the Shi'ite Houthi movement. Tens of thousands of Yemenis massed in the capital Sanaa on Friday in a protest called by the Houthis to demand the government's resignation and a reversal of the subsidy cuts. The rally came at the end of a week of demonstrations that have piled pressure on President Abd-Rabbu Mansour Hadi, who has struggled to keep order in the U.S.-allied country which borders major oil exporter Saudi Arabia. The source, who is from Yemen's presidential committee, said officials had handed to the Houthis a draft proposal that includes an offer to form a new government within a month and to set up an economic committee to review the fuel subsidy issue.