Palestinian legislators voted 56-18 to ratify Arafat's new ministerial roster in what at times was a stormy session at which critics accused Arafat of failing to make real changes to a government they view as tainted by corruption.

Arafat had pledged that the new cabinet, reduced to 19 members from 21, would overhaul his Palestinian Authority but it looks short of real reformers and was packed mostly with old faces. The United States, which wants regional tensions contained ahead of a possible war on Iraq, said it was "underwhelmed" at the line-up.

But the vote was a victory for Arafat. After warning a "No" vote would cause a collapse of the Palestinian Authority and with it hopes for statehood, he secured the cabinet he wanted and reunited his Fatah movement behind the government.

Israel accuses Arafat of fomenting a two-year uprising in the occupied West Bank and Gaza Strip, and demands that his government and armed security services be overhauled as a prerequisite for resuming talks on Palestinian statehood.

An Israeli government spokeswoman expressed cautious hope for a "good security performance" from the new leadership.

Hours later, a Palestinian gunman killed one person in a Jewish settlement and wounded four others before being shot dead, according to Israeli security sources and media reports.

A POLITICAL BATTLE IN ISRAEL

Arafat's changes coincide with a political battle in Israel that has brought Sharon's coalition close to collapse in a row with his main partner, the Labor Party.

Labor, led by Defense Minister Binyamin Ben-Eliezer, plans to defy Sharon and oppose the 2003 state budget in the Knesset (parliament) Wednesday over funds for Jewish settlements in occupied territories.

Labor wants some of the funds earmarked for the settlements to be reallocated to the poor and the elderly.

Sharon, riding high in opinion polls, vowed to eject Labor from his 19-month coalition if it voted against the budget, a move that would leave him without a parliamentary majority and possibly lead him to declare new elections for January.

There were five new faces in Arafat's roster and, in a move likely to raise eyebrows in Washington, he replaced his interior minister, Abdel-Razzak al-Yahya, regarded as a U.S. favorite for his apparent reformist zeal.

"You can say we are underwhelmed. This does not complete the process of what needs to be done," said a State Department official, who asked not to be named.

Yahya was replaced by Hani al-Hassan, a Fatah member.

The new Palestinian cabinet will serve until presidential and legislative elections on Jan. 20.

An Israeli spokeswoman said the success of Palestinians' national aspirations depended on them reining in "terrorists."

"The performance is the test here. If there will be good security performance by the Palestinians, then we will be able to embark on a road map to fulfill the target of a Palestinian state," Yaffa Ben-Ari of the Israeli Foreign Ministry said.

Israeli troops Tuesday also killed a Palestinian militant in a gun battle near the West Bank city of Jenin, witnesses said. The army said it arrested 23 militant suspects in the West Bank.

At least 1,636 Palestinians and 620 Israelis have been killed since the revolt erupted in September 2000.

(China Daily October 30, 2002)