JERUSALEM, 28 July 2004 — Palestinian Prime Minister Ahmed Qorei agreed to stay on the job yesterday, ending a 10-day standoff with President Yasser Arafat. Qorei’s chief spokesman said he had won effective control over parts of a security apparatus whose internal corruption and lawlessness are seen by US-led mediators as an obstacle to reviving peacemaking between Palestinians and Israel.

But Arafat retained his grip on the bulk of a dozen security services.

US reaction to what Palestinian officials billed as a breakthrough was skeptical. In Budapest at the start of a tour of Europe and the Middle East, US Secretary of State Colin Powell said he wanted to see action not words from the Palestinians over reforms.

“We need action, not propositions, not proposals, not commitments,” Powell said. “(We need) consolidation of the security services under the direction of the prime minister. We haven’t seen these things happening yet.”

Qorei’s announcement yesterday followed extensive mediation efforts by MPs who said they had secured an agreement by Arafat to implement reforms and crack down on corruption.

“President Arafat demonstrated his confidence in me by rejecting my resignation. I value this confidence that he has placed in me and I will therefore continue in my role,” Qorei said.

“I hope that we can now work together,” the premier added after a meeting of the Palestinian Cabinet in the West Bank town of Ramallah that was also attended by Arafat.

Qorei handed in his notice on July 17 after a spate of kidnappings in Gaza, including that of the head of the Palestinian police force.

But Arafat refused to accept the resignation and mediators spent the whole of last week trying to persuade the two men to resolve their differences.

A committee of MPs held talks with Arafat in Ramallah late Monday at his leadership compound where they secured an agreement for a crackdown on corruption.

“He agreed to publish an order to investigate any corruption file which is brought to him by our committee,” one of the MPs, Mohammed Horani, said.

Arafat “also said that he would order the publication of a law specifying the roles of the security branches and the division of power between the branches.

“We were pleased with this positive position from President Arafat and we will meet him again next week to see how this is being implemented.”

— Additional input from agencies