Palestinian Prime Minister Ahmed Qurei said Sunday that leader Yasser Arafat now in Paris for medical treatment is in good health.

He made the remarks at a meeting of the Palestinian NationalSecurity Council in an explicit effort to demonstrate that Arafat's ailment has not compromised the ability of Palestinian institutions' function.

The prime minister told reporters after the meeting "this situation requires us to control and overcome all obstacles and difficulties ahead."

According to a member of the council, the meeting discussed reforms and ways to rein in anarchy.

Palestinian Negotiation Minister Saeb Erekat said before the meeting "at the moment, our thoughts and prayers are with President Arafat for his speedy recovery."

"At the same time, we have Palestinian institutions that areable to run the daily affairs of the Palestinian people," he added.Arafat, 75, was airlifted to a French army hospital Friday from his shell-battered compound in the West Bank city of Ramallah in sharply deteriorating health.

French doctors were checking Arafat for viral infection after tests ruled out leukaemia and any other life-threatening illness,aides to the Palestinian leader said Sunday.