GAZA CITY, July 19 (AFP) - Yasser Arafat tried to quell a growing challenge to his leadership Monday by naming a new Palestinian security supremo and demoting his unpopular cousin but failed to persuade his prime minister Ahmed Qorei to retract his resignation.
After a night of armed clashes between the security services and militants traditionally loyal to Arafat, the veteran leader said Abdel Razzek al-Majeida would now take overall responsibility for general security in the West Bank and Gaza Strip.
The security chaos and the political impasse with Qorei is fast developing into the most serious challenge to Arafat since he returned from exile some 10 years ago.
Arafat's cousin Musa Arafat, who had originally been named as general security chief after a weekend revamp of the myriad security apparatus, will remain head of general security in Gaza but will be under Majeida. Ismail Jaber will be head of the same service in the West Bank.
Eighteen people were injured overnight in the southern Gaza town of Rafah during the clashes between the security services and fighters from the Al-Aqsa Martyrs Brigades which had fiercely denounced Musa's appointment and branded him the epitome of corruption.
Sources close to Arafat tried to downplay the snub to Musa, insisting that he had only ever been named as head of general security for Gaza and that Majeida was filling a "vacant position".
But the original weekend announcement, which saw the number of security services slashed to three from eight, made no mention that Musa's responsibility was limited to Gaza.
Majeida himself had been shunted aside from his position as head of general security in Gaza and appointed an advisor to Arafat in the weekend revamp.
Supporters of Majeida unleashed celebratory volleys of gunfire outside his offices in Gaza City after the announcement.
"His excellency Yasser Arafat informed me that I am going back to my position as head of the general security in the Palestinian territories," Majeida told the crowds.
The contradictory explanations for the new appointment added to a sense of chaos among the Palestinian leadership as the cabinet held an emergency session after Qorei submitted his resignation at the weekend, a move Arafat has refused to accept.
"I submitted my resignation for obvious reasons, because of the security chaos and I have not received any reply from President Arafat," he said after the cabinet session. "My resignation is accordingly still effective."
Qorei also issued an impassioned appeal for unity and an end to the internicine clashes, calling on "our beloved brothers in Gaza", telling them it "enough, enough and enough!"
"We also wish to say to the Palestinian leadership and to Abu Ammar (Arafat) that nobody in Gaza or elsewhere disagrees with him," he said.
The premier said an inter-ministerial committee had been established to "meet with Arafat, to review the situtation." The committee, he said," will go to Gaza to meet with various officials," and factions there.
A member of the new committee, housing minister Abdelrahmam Hamad, said "the mission of the committee will be to discuss with President Arafat the ways to stop the situation in Gaza."
He said the committee would also tackle the respective "functions of the interior ministry, the Palestinian Authority, the judiciary and the parliament.
Gaza MP and former cabinet minister Ziad Abu Amer said that Arafat still appeared to believe that he was untouchable.
"Yasser Arafat is not concerned with issues of popularity or reforms, he cares about control and political survival," said Abu Amer told AFP.
"It is not the first time Arafat has taken decisions or make appointments that are unpopular among his people, but he believes and Palestinians have him believe that he is the only legitimate leader, the symbol of the Palestinian struggle."