Palestinians get premier but Arafat still 'king'

The Palestinian parliament has established the position of prime minister and approved to a bill defining the new post's powers.

It is a major step in the reforms sought by the US, Europe and Israel in order to curb Yasser Arafat's near absolute powers.

However the Palestinian leader seems likely to retain control over security and peace talks with Israel while the new prime minister will focus on internal affairs.

The power-sharing agreement was worked out by Arafat and his intended appointee for prime minister Mahmoud Abbas.

But it falls short of demands that a new prime minister replace Arafat as the chief peace negotiator.