Arafat backs down over security chief

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.

Meanwhile, Palestinian Prime Minister Ahmed Qureia said he stood by his resignation letter and called on Mr Arafat to "appoint the right men to the right posts" in the security services.

He said the dispute with r Arafat over his resignation remained unresolved. "I have not received a written response," Mr Qureia said, indicating he did not accept Mr Arafat's verbal rejection of his resignation.

He said he wanted to resign because of "the state of chaos and loss of control over the security situation" in the Gaza Strip, which he said was only benefiting the Palestinians' enemies in

Israel. Mr Arafat phoned Abdel Razek Majaide and asked him to return to the office he left last week at Mr Arafat's request, said Nabil Abu Rdeneh, an Arafat adviser. Mr Arafat took the decision to calm the anger in Gaza over the appointment of Moussa Arafat as security chief in the Gaza Strip, Mr Rdeneh said. Opponents claimed the appointment perpetuated corruption and cronyism endemic among the Palestinian leadership.

As head of the Public Security Directorate for all Palestinian territories, Majaide became Moussa Arafat's superior officer in the formal chain of command. However, it was unclear whether Mr Majaide, who was promoted to the rank of lieutenant general, will have real authority over Moussa Arafat's operations in Gaza.

In Gaza City yesterday, supporters of Moussa Arafat marched through the streets pledging their loyalty.

The turmoil came as Israeli Prime Minister Ariel Sharon planned to withdraw from Gaza next year, intensifying a struggle for power and influence among Palestinian factions.

Mr Sharon is trying to shore up his shaky government, also weakened by opposition to the Gaza pullout. Coalition negotiations between Mr Sharon's Likud Party and the Labour Party began on Sunday and were to continue yesterday, according to a statement from Labour leader Shimon Peres. The Palestinian unrest began after Mr Arafat decreed a consolidation of about a dozen disparate security branches into three services a key reform the US and Egypt say is necessary to revive peace efforts.

But Mr Arafat defied international peacemakers by declining to put the security forces under the control of the Cabinet, and by naming his cousin as security chief.

Protesting the appointment, militants burned two offices in a Palestinian Authority building in the Gaza city of Khan Younis early on Sunday.

A security guard was wounded in a gunfight.

Hundreds of Palestinians, many carrying assault rifles, demonstrated in Gaza against Moussa Arafat.

Late on Sunday, gunmen exchanged fire with guards at the Palestinian security headquarters in Gaza.

The guards wounded three attackers. A Palestinian reporter was hit by a bullet, witnesses said.

Ahmed Babr was shot in the leg but is in a stable condition.