PALESTINE - July 18 - Violence Flares In Gaza As Qurei Quits.

In an escalating Gaza Strip violence following the July 17 resignation of PM Qurei and the appointment of Moussa Arafat as security chief, a cousin of Arafat, militants storm a security post in the southern city of Khan Younis setting fire to offices and wounding a guard. Pres Arafat has refused to accept Qurei's resignation. According to cabinet minister Saeb Erekat, Arafat, in a meeting said: "I totally reject your resignation and consider it non-existent". The appointment of Moussa Arafat as the new Gaza security chief prompted thousands to march in Gaza to protest against the appointment of what many see as a member of an old guard tainted by corruption. Qurei submitted his resignation July 17 and complained about "unprecedented chaos" in Gaza triggered by the brief abduction on July 16 of four French aid workers, the police chief and another official by gunmen demanding reforms. Talking to Israeli Army Radio, a Palestinian Deputy Minister Sufian Abu Zaideh, said: "Things have changed in the last two days. There are no more sacred cows. People are simply fed up". Palestinian factions continue to wrestle for control ahead of the removal of Jewish settlements and infighting is posing a serious challenge to the rule of Arafat. Diplomats said there was also an emerging power struggle within Arafat's Fatah movement as the veteran leader's grip on his organisation declines.