Arafat, Abbas struggle over Cabinet formation

Jerusalem (Agencies): Palestinian President Yasser Arafat and his prime minister-designate, Mahmoud Abbas, remained at loggerheads over the composition of the Palestinian Cabinet on Monday, after all-night negotiations failed to produce a compromise.

The crisis — described as the most severe ever between the two — threatens to torpedo a U.S.-backed "road map" to full Palestinian statehood within three years.

Abbas, who must win parliamentary approval for his Cabinet by Wednesday, has threatened to resign if his team is not accepted. The United States, in turn, has said it will only present the peace plan once Abbas and his Cabinet have been installed.

The main dispute is over the appointment of Mohammed Dahlan, a former security chief in Gaza. Abbas wants to give Dahlan a key security post, while Arafat wants to keep a confidant, Hani al-Hassan, in the job. The new security chief would have to supervise a crackdown on Palestinian militants, a prerequisite for moving ahead with the internationally backed peace plan.

On Saturday, Abbas stormed out of a meeting with Arafat after the Palestinian leader refused to support Dahlan's inclusion in the Cabinet. Israel and the United States back Dahlan, who has said he is confident he can rein in the militants.

Hassan does not have much international support, and as interior minister in the past few months have not succeeded in halting attacks by militants on Israelis.

The wrangling is over more than Cabinet appointments. If Abbas prevails, it would suggest he can pursue an independent policy. If Arafat wins the fight, it would mean Abbas will be little more than a figurehead.

Dahlan has offered to give up the security post to defuse the tensions, but Abbas is insisting on his appointment, the officials said.

Abbas, also known as Abu Mazen, has until noon Wednesday to present his government to the 88-member Palestinian legislature.

If he does not complete his Cabinet list by Tuesday, there will not be enough time for all legislators to arrive in the West Bank town of Ramallah for the session, officials close to the negotiations said.

Abbas and Arafat have not met since Saturday, but their aides have been holding marathon talks, including an all-night session that ended early Monday without results, the officials said.

On Monday, Palestinian mediators stepped up efforts to break a deadlock between Abbas and Arafat.

Mediators, such as cabinet minister Nabil Shaath, Arafat aide Tayyeb Abdel-Rahim and two other senior officials of his Fatah faction have been shuttling between Arafat's office and Abbas carrying a bridging proposal.

"The mediation efforts are still under way. We expect brother Abu Mazen to present the cabinet in the coming 48 hours."