The United States has welcomed the end of a standoff between Palestinian leader Yasser Arafat and his new prime minister, Mahmoud Abbas, over appointments to the new Palestinian cabinet. White House spokesman Ari Fleischer said the US would now publish its latest peace plan, the so-called "road map", as soon as the Palestinian legislature officially approves the cabinet - possibly on Sunday or Monday.
"When that happens we will officially provide the road map to the parties soon thereafter," Mr. Fleischer said.
Israeli leaders responded cautiously to the news that Mr. Arafat had backed down over the question of who would be in charge of Palestinian security.
It is "of course very important that on the other side there should be a person whose wish is for an end to terror and for peace", Israeli Prime Minister Ariel Sharon said.
Deputy Prime Minister Ehud Olmert told a US television station: "We have to wait and see if the new Cabinet will, in fact, be sworn in and how it will act, taking into account Arafat's staunch resistance to it and his capacity to undermine any process of reform."
The US state department called on the legislative council to confirm the cabinet nominations speedily.
Secretary of State Colin Powell is due to travel to the region soon.
Abbas prevails
The agreement - reached hours before a midnight deadline - sees Mr. Abbas get his choice of Mohammed Dahlan as minister of state for security.
Mr. Arafat and Mr. Abbas - also known as Abu Mazen - had argued bitterly over the role of Mr. Dahlan, leading to fears that Mr. Abbas would leave his post and plunge the peace process into a new crisis.
Mr. Arafat yielded in the face of intense international pressure.
Anonymous Palestinian and Egyptian sources told the Reuters news agency that Mr. Arafat had been given guarantees about his personal safety as part of the deal.
Egypt also reportedly promised to ask Israel to lift the travel restrictions it has kept him under since December of 2001.
Several leading Israeli officials have called for Mr. Arafat to be expelled from the West Bank.
Arafat questions
Mr. Dahlan was Mr. Abbas' choice for internal affairs minister. He is in favour of reform and was the Palestinian security chief in the Gaza Strip before falling out with Mr. Arafat, the overall Palestinians leader.
Correspondents say his appointment was also backed by the US and Israel, perhaps one of the reasons for opposition by Mr. Arafat who may have feared he would be sidelined.
Among the international figures sent to put pressure on Mr. Arafat and Mr. Abbas was Omar Suleiman, the head of Egyptian intelligence, who was a key figure in talks between Palestinian factions in Cairo earlier this year.
Numerous foreign leaders - including Egyptian President Hosni Mubarak and UK Prime Minister Tony Blair - called Mr. Arafat urging a resolution to the dispute.
PHOTO CAPTION
Palestinian President Yasser Arafat (news - web sites) (R) leaves his headquarters with premier-designate Mahmoud Abbas in the West Bank city of Ramallah, April 23, 2003. (Osama Silwadi/Reuters)
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