Annan: Arafat must listen to his prime minister

"Chairman Arafat should really take the time to listen to the prime minister and other members of his leadership, and take the necessary steps to bring the situation under control and to work with the Egyptian and Jordanians and the international community to reform his security apparatus," Annan said.

"They [the PA] are facing a serious situation, a serious crisis, and they have to take steps to bring it under control for without this it will be very difficult to see any progress," the UN leader said.

Meanwhile, Palestinian Prime Minister Ahmed rescinded his resignation Tuesday at Arafat's insistence, ending an immediate political crisis in the Palestinian government.

Annan said he supported his Middle East envoy, Terje Roed-Larsen, who criticized Arafat in the UN Security Council last week and charged him with "passivity and inaction."

Larsen accused Arafat of "giving only nominal and partial support" to the security reforms being brokered by the Egyptians, and of failing to restore law and order to the Palestinian streets.

"Such efforts are essential to put an end to the growing chaos in the territories," Larsen said. "The Palestinian leader is under house arrest but this is not an excuse for passivity and inaction."

Qureia rescinds resignation
Qureia reluctantly rescinded his resignation Tuesday at Yasser Arafat's insistence.

At a stormy cabinet meeting Qureia said he accepted Arafat's rejection of his resignation, which he submitted three days ago amid growing chaos in Gaza ahead of a planned Israeli pullout and discontent over disorder in the Palestinian security services.

But Qureia was clearly angry that Arafat refused to yield power over the security forces, and at the lack of authority the Cabinet has to make and carry out decisions.

He told the cabinet he saw himself only as a caretaker premier, ministers said, indicating that the underlying problems remained unresolved and another crisis could flare at any time.

Qureia "told Arafat that his government must have real authority, especially over the security branches in order for it to be effective," said Qadoura Fares, a minister without portfolio.

The emergency cabinet meeting was held at Arafat's headquarters, where the Palestinian leader has been sequestered for two years in his shell-shattered compound.

The prime minister left the meeting from a back door of Arafat's headquarters in Ramallah to avoid speaking to reporters.

"Arafat decided to reject Abu Ala's resignation, and renewed his confidence in him," said Arafat's aide Nabil Abu Rdeneh, referring to Qureia. "Accordingly, the resignation is officially rejected."

Arafat, who is chairman of the Palestinian Authority, attended the meeting but made no comment afterward.

Arafat creates new security position
Arafat announced Monday the establishment of a new security position called "Commander of General Security for Gaza and the West Bank," in an effort to soften angry opposition to his appointment of third-cousin Mousa Arafat as commander of the General Security forces in Gaza - but without actually firing him.

After a long day of political pressure and maneuvering in the Muqata in Ramallah, the PA leader gave the new job to Gen. Abdul Razeq Majaida, who had headed the National Security forces until Saturday, when Arafat fired him in the wake of the chaos erupting in Gaza with a wave of kidnappings.

Arafat informed his cousin - who until this weekend had headed Military Intelligence - that he could remain in office despite the protests, and in the same manner informed Majaida about his appointment to the new office and his promotion to the highest rank in PA military service, parallel to chief of staff. The move was greeted in Gaza as one that would reaffirm Arafat's position as the key player in Gaza.

Depicted as the standing army of the PA, the National Security forces count some 17,000 Gaza policeman in its ranks.

After the kidnapping Friday of police chief Ghazi Jibali, another officer, and five French civilians working in charities in Gaza, Arafat issued a presidential order changing the structures of the security forces. His appointment of Mousa Arafat made the relative the most senior commander of a security force in Gaza. In the same order, Arafat fired Majaida, turning him into a "security consultant to the Palestinian government." In addition, Arafat appointed another officer as a replacement for Jibali.

In the wake of the events in recent days aimed against Mousa Arafat, who was accused of corruption; the resignation of Qureia; and pressure from members of key Fatah institutions, Arafat reappointed Majaida, who is considered an Arafat loyalist not eager to clash with anyone. Although Majaida is theoretically more senior than Mousa Arafat, most of the centers of power remain in the hands of Mousa, just as they were when he was appointed on Saturday.

Majaida's appointment diverted attention in Gaza from the opposition to the Mousa Arafat appointment. Mousa conducted his own demonstrations Monday in Gaza, to counter the demonstrations against him over the previous few days. In the morning, several hundred armed police rallied in the streets of Gaza City, firing large numbers of bullets into the air and chanted support for Mousa Arafat.

In the afternoon, the military court convened in Khan Younis on Mousa's instructions regarding four young men depicted as supporters of Mohammed Dahlan - a direct rival of Mousa Arafat - who were said to have been involved in the arson attack on Mousa's Military Intelligence command headquarters in Gaza on Saturday night. It is not known what happened to the four youths.

Security sources in Gaza said they expect both sides in the rivalry between Mousa Arafat and Dahlan to avoid direct clashes in the coming days, though the sources said they expected mutual harassment by the two camps. The sources said they are worried that the next stage in the rivalry could become assassination.

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