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A woman stands between two umbrellas as she looks over the bridge to Admiralty district on Oct. 5 in Hong Kong.XAUME OLLEROS/AFP / Getty Images

Protests in Hong Kong threatened to swell again for a third weekend, after the foundering of planned talks between government and student leaders looked set to prolong the ongoing crisis in the Asian financial hub.

Hours after student groups called for a "new wave of civil disobedience," Hong Kong Chief Secretary Carrie Lam called off negotiations, planned for Friday, that had been among the few potential paths to resolution after protesters shut down a series of key downtown roads.

The occupation, now 12 days old, dwindled this week. But it regained momentum Thursday night after the eruption of a series of escalating recriminations.

With the breakdown in talks retrenching the staredown between protesters and government, the coming weekend could be a moment of truth: Will the protests simply wither away, or will renewed massive crowds compel Hong Kong authorities to offer compromise – or clear the streets by force?

On Thursday, student leaders called for protesters to return to the streets Friday afternoon, as a show of strength ahead of a scheduled 4 p.m. meeting with government officials. That meeting had been intended to address some of the grievances among demonstrators, who have demanded that Beijing rescind a plan for a 2017 chief executive election whose candidates it can control. Students also want sitting Chief Executive Leung Chun-ying gone.

Hours later, Ms. Lam responded by cancelling the meeting, faulting the students. "The basis for a constructive dialogue between us and the students has been seriously undermined," she said. She called for the protests, which have caused traffic tangles and a major drop in sales for nearby businesses, to halt. "These unlawful activities must end as soon as possible."

Students in turn responded with calls for even bigger protests, saying only large crowds could force the government to back down.

"The government has rejected our demands with such a ridiculous excuse and it has closed the door to solving the issue through dialogue," Alex Chow, secretary-general of the Hong Kong Federation of Students, said in a press conference. "Citizens should come back and take to the streets."

However, neither Beijing nor Hong Kong authorities have shown any sign of acceding to protester demands, saying the city is a Chinese one and is therefore under Chinese control. Demonstrators, meanwhile, have shown a willingness to endure through tear gas, violent thunderstorms and nights spent sleeping on hard asphalt.

Friday night will bring another pivotal moment for the so-called "Umbrella Revolution," whose strength lies in its ability to marshal numbers. Its moral standing continues to be tested by numerous counterprotesters, who have emerged to demand the blockades come down, including most recently a threat by Hong Kong drivers to personally dismantle the barricades.

Police and other leaders in Hong Kong have also raised pressure. On Thursday, local government officials said the longest morning traffic jam extended 4.8 kilometres, and large majorities of students near protest zones arrived at school late.

Police Chief Superintendent Hui Chun-tak accused the group of "making their voices heard at the expense of the public." He added: "The road blockade has increased the tensions between protesters and the local community."

In the legislative council, meanwhile, lawmakers threatened to extend the street disruptions into political proceedings. Alan Leong, who leads the six-member minority Civic Party, warned Thursday that he and others would embark on an "era of non-co-operation," saying Mr. Leung has "lost legitimacy."

A report this week in an Australian newspaper raised new questions about the Chief Executive, who while in office received secret payments totalling more than $7-million from an Australian engineering firm. The money was a normal non-compete payment, the engineering firm has said, but revelation of the cash has raised calls for Australian police and Hong Kong anti-graft authorities to investigate.

The Australian news report was based on confidential documents provided anonymously in the midst of a situation that has created headaches for Beijing, raising questions about who knew the information about him, and why it was now being leaked.

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