Palestinian rift puts peace plan at risk

HOPES that reformist Palestinian prime minister-designate Mahmud Abbas will declare a cabinet were fading yesterday after he said he would no longer discuss the formation of a new government with Yasser Arafat.

The White House said Tuesday that it was “important” for Palestinians to pursue political reforms, even as hopes faded that their reformist prime minister-designate would create a cabinet.

“It’s important for the Palestinian people that reforms move forward,” spokesman Ari Fleischer said after Mahmud Abbas made his statement.