Arafat backs down but PM says resignation stands

Palestinian prime minsiter Mr Ahmed Korei has said his weekend resignation from the post still stands despite a refusal by Mr Yasser Arafat to accept it.

"Yes, I have submitted my resignation in writing to the president . . . (over) the state of chaos and lawlessness (in Gaza).

"As yet, I have not received a written response and therefore I consider that the resignation stands," Mr Korei told reporters. "However, most of the ministers in the cabinet are against this resignation."

Mr Korei tendered his resignation in the wake of unrest sparked by the appointment of Mr Arafat's cousin as head of security.

Mr Arafat backed down today and asked the former chief to return to his job in a climbdown that followed widespread protests.

Mr Arafat phoned Brigadier General Abdel Razek Majaide and asked him to return to the office he left last week at Mr Arafat's request, said Mr Nabil Abu Rdeneh, a senior Arafat adviser.

Mr Arafat took the decision to calm the anger that has spilled into the streets of Gaza over the appointment of Mr Moussa Arafat, Mr Rdeneh said.

Opponents claimed the appointment perpetuated a system of corruption and cronyism endemic among the Palestinian leadership.

But Mr Moussa Arafat retained a senior security post in Gaza, subordinate to Gen Majaide who has overall authority in both Gaza and the West Bank, the officials said.

Palestinian gunmen last night stormed an intelligence office in one Gaza refugee camp and marched through another, protesting at Mr Moussa Arafat's appointment.

But in Gaza City today, hundreds of his supporters marched through the streets, some firing assault rifles into the air - raising the possibility of a violent conflict over the appointment.

"We will protect you by our soul and our blood, our hero Abu Amr," the demonstrators chanted, referring to Mr Yasser Arafat.

The turmoil in Gaza was a grave challenge for Mr Arafat and highlighted sharp rifts between the veteran Palestinian leader and the cabinet that is supposed to be running the West Bank and Gaza Strip.

In the Rafah refugee camp late last night, gunmen exchanged fire with guards at security headquarters and attempted to break into the complex with a bulldozer. The guards wounded three attackers, but there were no casualties among the security forces.

AP