CHALLENGES TO NEW PALESTINIAN LEADERSHIP

Despite an initial smooth transfer of power last Thursday, the new Palestinian leadership is facing a difficult job of adapting to a collective leadership and winning popular trust in their endeavors towards peace with Israel in the absence of Arafat.

The power transfer did not necessarily give the new leaders therespect and support Arafat had enjoyed among the Palestinians and in the international community. To them, how to unite all the Palestinians and how to win the Palestinians' trust are two major tasks.

Adapting to changes from a single decision-maker to collective leadership will be crucial for Palestine's political stability, analysts here said.

Rawhi Fattuh, speaker of the Palestine Legislative Council, wassworn in as interim president for 60 days as stipulated by Palestinian laws and organizational rules. 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 securityforce.

It's been left unanswered whether the collective leadership canproceed well during the 60 days, what the final power sharing willbe after the 60 days and how the various political parties will participate in the new political structure.

The new leadership, though more moderate, realistic and flexible than Arafat as many analysts anticipated, can not sacrifice the national interests of the Palestinians in exchange for peace with Israel.

Thus how to balance the interests of different armed factions and forces and to avoid internal political bickering will be a great test for the new leaders.

ISRAEL'S UNILATERAL PLAN HITS DEAD END

Israel has long regarded Arafat as the "greatest obstruction topeace" and refused to negotiate with him, but now Arafat has gone and Israel lost the excuse for its refusal of negotiation.

Arafat's death pushed Sharon to re-exam his unilateral plan andits consequences. The four-year-long mass conflicts between Israeland Palestinians have brought huge losses to both sides, which called for peaceful way out.

However, such pricky issues as territories, refugees and the final status of Jerusalem take time to resolve. Therefore, even though peace talks began, that was just the first step towards thepossible realization of the Mideast peace process.

BUSH'S POLICE ON ISRAEL KEY TO MIDEAST SITUATION

US President George W. Bush was re-elected earlier this month, and after Arafat's death Bush promised to establish a Palestinian state within four years.

"I believe we've got a great chance to establish a Palestinian state and I'm prepared over the next four years to spend the capital of the United States to establish such a state," Bush saidafter Arafat's death.

He said he will work with Israeli and Palestinian leaders to complete Israel's withdrawal from the Gaza Strip and part of the West Bank.

Bush's willingness to restart peace talks based on the interests and strategy of the United States, for the continuing conflicts in the Middle East has brought Washington no benefits.

But Bush has given no sign of applying additional pressure on Israel so far, and how to deal with Sharon's unilateral plan remains a big challenge to the US president.