Will Arafat Step Aside?

The Bush administration might have suffered a setback at the U.N. last week, when talks deadlocked over ousting Saddam, but it got a boost for another sought-after regime change in the Middle East. Palestinian leader Yasser Arafat announced last week that he will begin to ease his grip on power by appointing a Prime Minister. Why did Arafat suddenly accede to a demand that the Israelis--who say they can no longer work with Arafat--and the U.S. have been making for months? It may be the looming war with Iraq. U.S. and Palestinian officials tell TIME that Arafat fears Israel's hawkish Prime...

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