Palestinians urged to move swiftly

The US wants Abbas to govern without interference from Arafat

The United States has urged the Palestinians to quickly install a new cabinet under Prime Minister Mahmoud Abbas.

"The Palestinians can't afford to miss this opportunity," state department spokesman Richard Boucher said in Washington.

Mr Boucher's comments come as Palestinian leader Yasser Arafat and Mr Abbas apparently remain deadlocked over the composition of the new cabinet.

Despite intensive negotiations, Mr Abbas has failed to win approval for his choice of ministers and some officials are talking of a serious crisis.

The two men have given themselves until Wednesday to agree on the make-up of a new Palestinian government, which the US says is a pre-condition for publishing details of a new peace plan.

The formation of a strong and empowered Palestinian cabinet headed by Abu Mazen... is deeply in the interest of the Palestinian people

Richard Boucher, US state department spokesman

The "road map" - as the peace plan is being called - is intended to bring to an end two and a half years of fighting between Israel and the Palestinians.

Unless the new cabinet is agreed by Wednesday, Mr Arafat is likely to choose another prime minister.

Mahmoud Abbas, also known as Abu Mazen, has already threatened to resign after Mr Arafat blocked his choice of former security chief, Mohammed Dahlan, as internal affairs minister.

Mr Arafat is reported to want Hani al-Hassan, an old loyalist of his, to continue to head the ministry, which runs Palestinian security services.

'Moderate'

"It is essential that the Palestinians complete this process of establishing a government urgently," Mr Boucher said.

Without mentioning Mr Arafat by name, the US spokesman said that the confirmation of Mr Abbas' government was key for Washington's release of the "road map".

Mr Arafat is aware of US and Israeli attempts to sideline him

"Our view is that the formation of a strong and empowered Palestinian cabinet headed by Abu Mazen and committed to serious efforts on reforms and security is deeply in the interest of the Palestinian people," Mr Boucher said.

Both Yasser Arafat and Mahmoud Abbas have been holding separate talks with members of Fatah, Mr Arafat's political movement.

Mr Dahlan, in favour of reform, was the Palestinian security chief in the Gaza Strip before a falling out with Mr Arafat.

Mr Abbas, also seen as a moderate, has denounced violence by Palestinian militants as counterproductive to Palestinian statehood goals.

The US wants him to be able to govern without interference from Mr Arafat.

Palestinian sources say Mr Arafat sees the appointment of Mr Dahlan as part of an American agenda, and he is also keenly aware of US and Israeli attempts to sideline him.

According to the BBC's Barbara Plett in Jerusalem, at the moment Mr Arafat appears to be standing firm on the issue - backed by many in Fatah.

The "road map" has been backed by the US, the European Union, Russia and the United Nations.