US Will Accept Arafat as Figurehead

European, US and United Nations leaders on Tuesday tried to show a united international front towards the Palestinian-Israeli conflict, but failed to paper over their considerable differences.

European and Russian leaders on Tuesday insisted that Yassir Arafat was the legitimate leader of the Palestinian people, while the US softened its stance, saying Mr Arafat could maintain a figurehead position.

Colin Powell, US secretary of state, said on US television late on Monday that he would be "more than willing to consider" a plan that would lead to the appointment of a new Palestinian prime minister and leave Mr Arafat as a figurehead president.

The idea is backed by European and Arab states and it has been been put forward recently by Joschka Fisher, German foreign minister.

Giving Mr Arafat a more ceremonial role is seen by the US allies as a compromise between Arab positions and those of President George W. Bush, who recently called for the removal of Mr Arafat.

Russia and several Arab states in particular are wary of pushing aside Mr Arafat and imposing a reform programme from the outside.

Mr Annan, UN secretary-general, said: "We all have our respective positions. The UN still recognises Chairman Arafat and we will continue to deal with him until the Palestinians decide otherwise."

The meeting of the quartet - which includes Mr Powell, US secretary of state, Javier Solana, European Union foreign policy chief, Mr Annan and Igor Ivanov, Russian foreign minister - is part of an attempt to turn the new US policy into a practical workplan.

Following the meeting the leaders condemned on Tuesday's terrorist bombing attack and agreed on the "critical need to build new and efficient Palestinian security capabilities". To that end, Mr Solana said a US-led team would travel to the region within the next two weeks.

The quartet expressed unusually strong language regarding steps Israel must take to support the emergence of a viable Palestinian state. They included "immediate measures to ease the internal closures in certain areas and, as security improves through reciprocal steps, withdrawal of Israeli forces to their pre-September 28 2000 positions".

It also called on Israel to release frozen tax revenues, to stop all new settlement activity and ensure "full, safe and unfettered access for international and humanitarian personnel".

Meanwhile, Egypt, Jordan and Saudi Arabia, which on Tuesday were scheduled to join the quartet in an afternoon discussion, are expected to push for a plan that would call for Palestinian elections and, more controversially, for UN recognition of a Palestinian state even before its borders are finalised.