Palestinian PM withdraws resignation in deal with Arafat

PALESTINIAN Prime Minister Ahmed Quriea withdrew his resignation yesterday after Yasser Arafat granted him some power to carry out reforms, easing a paralysing leadership crisis, officials said.

Mr Quriea’s chief of staff said he had won effective control over police and internal security agencies, part of a security apparatus whose chaos and corruption is seen by international mediators as an obstacle to peacemaking with Israel.

Mr Arafat’s move came after an unprecedented explosion of unrest over high-level inaction on demands for anti-corruption reforms.