Arafat Sees Off Prime Minister's Challenge

The Palestinian prime minister yesterday withdrew his threat to resign after Yasser Arafat appeared to concede some powers to him over security forces. The move means Mr Arafat has successfully seen off a challenge to his power.

Ahmed Qureia threatened to quit almost two weeks ago after an outbreak of disorder in the Gaza Strip. He demanded control over Palestinian security forces to impose order.

However, Mr Qureia retracted his resignation after Mr Arafat conceded jurisdiction over three security agencies, although the jurisdiction would be controlled by the interior minister, who is appointed by Mr Qureia but approved by Mr Arafat.

A source close to the Palestinian leadership said the climbdown by Mr Qureia marked his failure to exert any pressure over Mr Arafat.

"He thought that with the events in Gaza he could pressurise Arafat into giving him more control over the security services. Arafat was adamant and Qureia had no choice but to back down," said the source.

Mr Qureia told reporters in Ramallah: "The president refused my resignation and I will comply. This is a new step toward reform and imposing the rule of law."

He added: "I'm not going to bargain with the president about authority over the security branches. We have enough powers over them as it stands."

Mr Qureia finds himself in the same situation as his predecessor, Mahmoud Abbas, who resigned last year after being consistently undermined by Mr Arafat.

Israeli intelligence officials believe Mr Arafat is trying to hang on to all his power until November, when he hopes an electoral defeat for George Bush will produce an environment more favourable to him.

The most recent crisis was precipitated by Fatah armed groups in Gaza demanding free elections and an end to the corruption over which Mr Arafat has presided.

While the militants said they had little sympathy for Mr Qureia, whom they saw as part of the problem, it remains to be seen how they will react if their grievances are not acknowledged.

Palestinian officials yesterday said Mr Arafat had agreed to allow the Palestinian attorney general to investigate those accused of corruption.

"When we have an attorney general launching investigations against corruption no one in Gaza can pretend that nothing is being done to stop it," said the foreign minister, Nabil Shaath.

But Hannan Ashrawi, a member of the Palestinian Legislative Council, said: "Brinkmanship has run its course and we are staring at the abyss. The Palestinian people want real political reform."