Palestinian Prime Minister Ahmed Qorei said:" his government would not quit before its mandatory resignation next month, defying calls by legislators who said it had failed to halt armed chaos".

Lawlessness, however, continued in the coastal territory with the abduction by masked Palestinian gunmen of a U.S. and a British journalist.  

On the political front, Qorei said that, "as dictated by an election law, the Cabinet would remain in place until next month when it would be required to leave office to allow time to prepare for a legislative ballot in January".

"We are staying until the elections campaign begins," he told reporters. "We are at a critical crossroad. We are coming closer to elections. We have to impose law and order."

The Palestinian Parliament had voted to accept a committee report that said the Cabinet mishandled its response to factional anarchy in Gaza that worsened after Israel's pullout last month, and urged President Mahmoud Abbas to form a new government.

Lawlessness in Gaza has increased since Israel completed its pullout on September 12, with rival armed groups rushing to stake a claim to power.

Abbas ordered gunmen outside the security services to give up their weapons. Several gunfights erupted last week between Palestinian militants and policemen.

Citing what they said was the Cabinet's lack of control to combat the chaos, Palestinian members of Parliament called on Abbas to form a new government or face a no-confidence ballot, a move that does not affect his leadership since he was elected by popular vote.

Qorei said:" Abbas told the Parliament in a letter that there was insufficient time to form a new government if the Cabinet resigned now, as officials would be busy campaigning for the election".

Ahmad Deek, a Fatah member of Parliament, said:" legislators would study the letter and if we are not convinced we will hold a no-confidence vote and bring the government down."

" In the latest challenge, to Abbas's approach to lawlessness, a reporter and photographer working for Knight Ridder newspapers were seized by assailants who stopped their car near the town of Khan Younis and took them away at gunpoint", their Palestinian translator, Ziad Abu Mustafa, said.

" Security forces have mounted a search for them", Palestinian Interior Ministry spokesman Tawfiq Abu Khoussa said.

PHOTO CAPTION

Palestinian President Mahmoud Abbas (2nd R) and Palestinian Prime Minister Ahmed Qurie (R) attend Friday prayers during the Muslim holy fasting month of Ramadan in the West Bank city of Ramallah October 14, 2005. (REUTERS)