Arafat and Abbas lock horns over members of new cabinet

Yassar Arafat was in a tug-of-war with his Prime Minister-designate, Mahmoud Abbas yesterday over the formation of a new cabinet.

Mr Abbas, more commonly known as Abu Mazen, stormed out of a meeting of the Fatah central council in Ramallah on Saturday night after Mr Arafat vetoed his appointment of Mohammed Dahlan, the former Gaza security chief, as Interior Minister. Abu Mazen is reported to have threatened to return his mandate.

President George Bush has promised to publish an international "road-map" for a Palestinian state as soon as the new cabinet is sworn in. The Americans and Israelis respect Abu Mazen as more credible and more pragmatic than the Palestinian President but observers contend Mr Arafat is determined to keep security and the peace process in his own hands.

Israel hinted last week at several confidence-building gestures once Abu Mazen took office. These include easing travel restrictions, gradually withdrawing from occupied Palestinian towns, releasing some security prisoners and unfreezing more tax revenues owed to the Palestinian Authority. The Americans have also indicated they will press Israel to evacuate some of the 100 unauthorised settler outposts dotted around the West Bank and freeze settlement construction. The Secretary of State, Colin Powell, said at the weekend that he would fly to the Middle East soon to promote the road-map.

As Interior Minister, Mr Dahlan would be responsible for controlling and disarming radical Palestinian militias and preventing attacks on Israeli civilians. He built a reputation for strength and independence in Gaza. As a member of the Palestinian negotiating team at Camp David in July 2000, he urged Mr Arafat to accept the compromise peace offered by Ehud Barak, the Israeli Prime Minister at the time.

Palestinian critics say Mr Arafat wants one of his own loyalists, Hani al-Hassan, to stay on as Interior Minister. One minister in the outgoing cabinet suggested, however, that Mr Arafat was merely reluctant to promote the 42-year-old Mr Dahlan over the heads of older, more senior security officials.

Abu Mazen insists that he must be a Prime Minister with real power but has agreed to retain three Arafat favourites that he had originally wanted to demote (though in different posts): Mr al-Hassan, Sa'eb Erakat and Yasser Abed Rabbo. His supporters claim these are marginal concessions in the hope of reaching agreement by Wednesday.

Many insiders believe the two old warriors, who have worked together in the Palestinian national movement for four decades, will find a way to an agreement. The alternative, they argue, is perpetuation of violence and another historic missed opportunity.