by Hossam Ezzedin
RAMALLAH, West Bank, July 20 (AFP) - Palestinian prime minister Ahmed Qorei reached an uneasy truce with veteran leader Yasser Arafat Tuesday, refusing to retract his resignation but agreeing to stay in his post for the moment.
"There has been no breakthrough. Abu Alaa (Qorei) has not changed his position about resigning," minister without portfolio Qadura Fares said after Qorei and his cabinet met with Arafat at his leadership compound here.
"Abu Alaa is prepared to continue in his position for the time being but only until the formation of a new government," he told AFP.
Qorei submitted his resignation on Saturday after a breakdown in law and order in the Gaza strip including an unprecedented spate of kidnappings but Arafat has refused to accept it.
After street protests in Gaza forced him to execute an embarrassing U-turn over his choice of security supremo on Monday, Arafat can ill afford to be seen losing a battle of wills with his prime minister.
International pressure is also growing on Arafat with UN Secretary General Kofi Annan urging him to grasp control of the situation by working with Qorei.
Arafat's top aide Nabil Abu Rudeina tried to insist that the stand-off between the two men had been resolved in Tuesday's meeting.
"At today's meeting, President Arafat repeated his refusal to accept Abu Alaa's resignation and he renewed his confidence in him," he told reporters.
"The resignation of Abu Alaa has been officially refused and he will remain in his place and the issue is finished."
But negotiations minister Saeb Erakat, an Arafat loyalist, confirmed that the standoff was far from over although he denied it was personal.
"President Arafat completely rejected the resignation of Abu Alaa but Abu Alaa is still insisting that he is resigning," he told AFP.
"The crisis is still ongoing, not because of Abu Alaa's resignation but because of the reasons behind his resignation.
"We hope to overcome this crisis as soon as possible in the interests of the Palestinian people."
The Gaza protests, which at one stage erupted into armed clashes between the security forces and militants traditionally loyal to Arafat, was sparked by the appointment of his unpopular cousin Musa as head of the general security service.
Arafat subsequently demoted Musa on Monday by naming Abdel Razzeq al-Majeida as overall security supremo with his cousin's responsibility limited to Gaza.
While calm has returned to the streets of Gaza, the political and security crisis presented Arafat with his biggest challenge since he returned from exile to the territories some 10 years ago.
One leading Palestinian MP, speaking on condition of anonymity, said Arafat was now on the brink.
"He has reached the edge of the precipice and it is a long way down," the deputy told AFP.
A new opinion poll published by An Najah university, based in the northern West Bank city of Nablus, found that 60 percent of Palestinians believed that Qorei is incapable of performing fully as a prime minister.
The same survey also found that only 23.9 percent believe the Palestinian Authority "is capable of exiting the current political crisis" while just 28 percent said that they are satisfied with the performance of the government.
The issue dominated talks Tuesday between EU foreign policy supremo Javier Solana and Jordanian Foreign Minister Marwan Moasher in Amman.
"The need for calm to be restored in the Palestinian territories as well as the situation in Iraq was the focus of the discussions," a Jordanian official said.
Annan, whose special envoy to the region delivered a damning report into Arafat's stewardship last week, also called for matters to be brought under control quickly.
"It is a serious crisis with the prime minister at the centre of it," Annan said. "Chairman Arafat should really take the time to listen to the prime minister and other members of his leadership, and take the necessary steps to bring the situation under control."
The United Nations, meanwhile, was expected to vote later in the day on a resolution calling on Israel to heed a world court ruling to tear down part of its controversial West Bank separation barrier.
General Assembly resolutions are non-binding but the Palestinians have said the measure would add to international pressure on Israel over the 700 kilometer (435 mile) barrier.
Israel, which says the barrier is vital to prevent suicide bombings, has already vowed to ignore the International Court of Justice's verdict.