A new Palestinian leadership emerged Thursday after Arafat died earlier at a French military hospital outside Paris.

Rawhi Fattuh, speaker of the Palestine Legislative Council, was sworn in as interim president for 60 days. Farouk Kadoumy, politburo chief of the Palestine Liberation Organization (PLO), was named head of the mainstream Fatah movement. Former prime minister Mahmoud Abbas was elected chairman of the PLO. Prime Minister Ahmed Qurei took over command of the Palestinian security force.

No disputes tarred the transfer of power, which proceeded as stipulated in Palestinian laws and organizational rules, dispersing fears of a power vacuum or internal wrestling for powerat a time of transition.

However, a smooth power transfer does not do all the job in clearing up worries about the new leadership and the future of the Palestinian cause. After all, to unite the Palestinians, divided in political conviction and organizational affiliation, in the absence of Arafat represents a huge challenge for the new leaders.

The power transfer did not give the new leaders the respect and support Arafat enjoyed among the Palestinians and in the international community. To them, adapting to changes from a single decision-maker to collective leadership and winning the Palestinians' trust is a major challenge. They will be tested on key issues, such as peace talks with Israel, which require them to balance the interests of different armed factions and forces and avoid internal political bickering.

Whatever difficulties may lie ahead, the new leaders may also see hopes coming their way. After years of working as close associates to Arafat, they are already experienced, influential political figures. The Palestinians, weary of violence and conflict that has been part of their life for decades, have a strong thirst for peace, which may deter internal chaos.

The biggest advantage they enjoy, however, is the backing of the international community, including Israel and the United States.

The United States, eager to make headway in the Middle East peace process, hopes to work with the new leadership to revive the stalled "roadmap" peace plan.

"The death of Yasser Arafat is a significant moment in Palestinians' history," US President George W. Bush said in a statement after Arafat's death.

"We hope that the future will bring peace and the fulfillment of the aspirations for an independent democratic Palestine that is at peace with its neighbors," the statement said.

Palestinian Foreign Minister Nabil Shaath has urged Israel to resume implementation of the US-initiated "road map" peace plan, saying Israel had used Arafat as an excuse for refusing to withdraw from West Bank towns.

Israel has its stake in stability on the Palestinian territories. The new leaders are not very tough toward Israel, and therefore helping them maintain stability suits Israel's needs.

Israeli Prime Minister Ariel Sharon said it could be a "turning point" in the peace process if Arafat's successors take measures to end violence.

Israel is likely to help the new leadership gain a solid footing by allowing the Palestinians more benefits ranging from the revival of peace talks, return of occupied territories to an easing on restrictions on Palestinians and economic aid.

Arab countries like Egypt and Jordan have also voiced their support for the new Palestinian leadership. The international community pins hopes on the new Palestinian leadership for stridesin the Middle East peace process.