Middle East: The ruling Fatah party on Saturday approved a new cabinet filled with men loyal to Palestinian Authority President, Mr Yasser Arafat, raising the question of how the US and Israel, which has said it will not deal with a cabinet controlled by the Palestinian leader, will relate to the new government, writes Peter Hirschberg in Jerusalem
The radical Islamic Jihad movement, meanwhile, claimed responsibility for the shootings on Friday night in the West Bank settlement of Negohot, near Hebron, in which two Israelis, including a seven-month-old girl, were killed.
The gunman, Mohammed Hamdan (22), was released from an Israeli jail two months ago after serving a 14-month sentence. Hamdan knocked on the door of a mobile home in the settlement as the family was sitting down for the traditional meal to usher in the Jewish New Year, and opened fire. He was shot dead by troops at the scene.
The Central Committee of Fatah approved the make-up of the new government of Prime Minister-designate Mr Ahmed Korei, who replaces Mr Mahmoud Abbas, who stood down earlier this month, after repeated showdowns with Mr Arafat.
Several cabinet places still have to be filled, but Mr Korei expects to present his new government to the Palestinian parliament later this week.
Significantly, the new Interior Minister - a post which includes authority over the security forces - will be Mr Nasser Yussuf, an Arafat loyalist. He effectively replaces Mr Mohammed Dahlan, who was head of security affairs in the previous government and was viewed as a US-backed choice.
Mr Dahlan and outgoing Prime Minister Mr Mahmoud Abbas repeatedly clashed with Mr Arafat over the issue of security control.
The appointment of Mr Yussuf makes a showdown between the Palestinian Authority and militant groups even less likely.
Thousands of Mr Dahlan's supporters gathered on Saturday in Gaza to protest at his non-inclusion in the new cabinet.
Some burned effigies of Fatah Central Committee members.
Mr Korei has said he will call for a ceasefire once he is sworn in, but has given no indication he plans to use force to confront militant groups.
Israel has said that until the Palestinian Authority moves to crush groups like Hamas, as the road map peace plan requires, it will not agree to a renewal of the political process.
If the US decides to engage in open relations with Mr Korei - a likely scenario - Israel will have little choice but to follow suit.
Despite the threat not to deal with an Arafat-dominated government, Israeli Prime Minister, Mr Ariel Sharon, has said that Mr Korei will be judged by his actions - in other words, how he deals with Hamas and Islamic Jihad.
The new government will include many familiar faces, including long-time Arafat loyalists like Mr Yasser Abed Rabbo (Information Minister) and Mr Saeb Erekat (Minister in charge of negotiations).