DATE=11/9/2003

TYPE=CORRESPONDENT REPORT

TITLE=PALESTINIANS/POLITICS (S)

NUMBER=2-309617

BYLINE=ROSS DUNN

DATELINE=JERUSALEM

CONTENT=

VOICED AT:

INTRO: The Palestinian prime minister, Ahmed Qureia, says he has formed a new government and will present it to parliament for approval. His announcement followed a power struggle with President Yasser Arafat over control of Palestinian security forces. Ross Dunn reports from Jerusalem.

TEXT: Mr. Qureia has won the backing of Mr. Arafat to form a new cabinet by conceding power over the security forces to the Palestinian president.

Mr. Qureia had wanted the Palestinian security commander, Nasser Yousef, to become the interior minister, with control over the various police forces.

But Mr. Yousef has now been excluded from the cabinet lineup in a move to appease Mr. Arafat, who has succeeded in securing the post for one of his strongest loyalists, Hakam Balawi. He will have responsibility for some of the security forces, while others will be overseen by a new national security council headed by Mr. Arafat.

Israeli officials, who accuse Mr. Arafat of orchestrating much of the region's violence, say the Palestinian cabinet deal extends what they call the Palestinian leader's cartel of terror. (SIGNED)

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