THE MIDDLE EAST: The ruling Fatah party last night chose former prime minister Mr Mahmoud Abbas as its candidate to succeed Yasser Arafat as leader of the Palestinian Authority in elections scheduled to be held in the West Bank and Gaza Strip on January 9th, writes Peter Hirschberg in Jerusalem
The decision came hours after Israeli leaders, prompted by a visit to the region by US Secretary of State Colin Powell, said they would hold talks with the Palestinians to co-ordinate the elections, and that they would also co-ordinate Israel's planned withdrawal next year from the Gaza Strip and part of the northern West Bank.
Following a meeting with Mr Powell, Prime Minister Mr Ariel Sharon told the Foreign Affairs and Defence Committee in parliament that there would be meetings in the coming days between Israeli and Palestinian officials to discuss arrangements for the elections.
The Palestinians want Israel to withdraw its troops from major urban areas, remove roadblocks in the Occupied Territories and lift other travel restrictions that severely limit movement. The EU announced yesterday that it would send a team to the area - made up of members of the European Parliament - to observe the elections.
After meeting Mr Powell, Israeli foreign minister Mr Silvan Shalom said Israel had agreed the Palestinians should have "freedom of movement" in the run-up to the elections.
"The first priority is the Palestinian election, which will hopefully bring about a Palestinian leadership with whom we can sit down and address all the issues on our agenda," Mr Shalom said.
"I have reassured the secretary today that Israel will do everything in its power to ensure their smooth running."
In the wake of Mr Arafat's death, elections have become the focus of renewed diplomatic activity in the region, with a vote seen as vital in bestowing legitimacy on a new Palestinian leadership. Cabinet minister Mr Saeb Erekat said the American diplomat had told Palestinian officials the US would "stand shoulder to shoulder with us" to ensure elections were "free".
Mr Powell said the US was looking for ways to return to the moribund road map peace plan, adding that the Bush administration wanted to "take advantage of the new opportunities that are before us" - a clear reference to the passing of Mr Arafat, who was ostracised by both Israel and the Americans.
Mr Abbas (69) has already been elected to succeed Mr Arafat as head of the PLO. He resigned as prime minister in 2003, after just several months in office, over Israel's refusal to make concessions as well as clashes with Mr Arafat over the Palestinian leader's refusal to relinquish any of his powers.
Mr Abbas is viewed by some as only an interim leader lacking the broad support needed to rule the Palestinians and to make the concessions that will be necessary if a peace deal is to be reached with Israel and an independent Palestinian state established.
He could face a challenge from inside Fatah if the movement's leader in the West Bank, Mr Marwan Barghouti, decides to run.
Mr Barghouti (45) a member of the younger generation of Palestinian leaders, is serving five life terms in an Israeli jail after being convicted of involvement in attacks that killed five Israelis.