Hundreds of Palestinian security men loyal to president Mahmoud Abbas went on a rampage against the Hamas-led government, riddling the parliament building and cabinet offices with bullets before setting them on fire in retaliation for an attack by Hamas gunmen in the Gaza Strip.

Israel was giving Mahmoud Abbas one last chance to enforce a ceasefire tonight and decided to resume security talks with the Palestinians – holding off a major military offensive.

BACKING down in the face of violent protests, Yasser Arafat asked the ousted Palestinian chief of security to return to his job yesterday, placing him in command of his cousin, Palestinian officials said.

Palestinian Prime Minister Ahmed Qureia refused to withdraw his resignation letter today, and called on Yasser Arafat to “appoint the right men to the right posts” in the security branches.

Backing down in the face of widespread protests, Yasser Arafat replaced his cousin as Palestinian security chief today and asked the former chief to return to his job.