Abbas, a leader of Arafat's Fatah movement, the main faction in the Palestine Liberation Organization (PLO), is trying to craft a “reformist” government and has another 10 days to present a line-up.

U.S. President George W. Bush has promised to unveil the internationally-drafted roadmap setting out the steps to Palestinian statehood by 2005 once the new government has been approved.

However, Abbas, who enjoys sweeping international support for his calls for an end to anti-Israeli attacks by resistance groups, ran into a hitch late Sunday when three senior officials, known for their loyalty to Arafat, refused to join the new cabinet.

Abbas, also known as Abu Mazen, presented the initial draft proposal for a new cabinet to Arafat Saturday night, but the veteran leader was said to be "not happy" with the line-up, which named his former Gaza security chief Mohammad Dahlan as head of internal security.

The three who are refusing to participate in the cabinet are chief negotiator Saeb Erakat, Information Minister Yasser Abed Rabbo and economy minister Maher al-Masri, Palestinian officials told Agence France-Presse (AFP), on condition of anonymity.

Their lack of cooperation could strengthen opposition from the old guard in Abbas' own Fatah faction, while their inclusion may present hurdles when he presents the proposals in parliament, where reformists want a government with more technocrats, AFP predicted.

If Abbas fails to form a government within the time allotted, Arafat can by law ask a new Prime Minister to take over.

Israel Focuses On Syria

Mofaz

While a power struggle was underway in Ramallah, Israel turned its sights on long-time foe Syria, which has come under harsh criticism from Washington for allegedly sheltering members of the deposed Iraqi regime and possessing chemical weapons.

A top Israeli official warned Damascus not to "play with fire" after Syrian Foreign Minister Faruq al-Shara said the Jewish state would suffer if Syria was attacked by U.S. forces who have taken over Iraq.

“Israel is not looking for an escalation with Syria but Damascus is playing with fire by threatening us with its terror arsenal," a senior official close to Prime Minister Ariel Sharon told AFP.

"We warned Syria against the temptation to attack us during the war in Iraq. That would be an even greater mistake for them after the victory of the coalition" of U.S. and British forces in Iraq, said the official, who asked not to be named.

The Israeli official said that at this stage Israel, which occupied the Syrian Golan Heights in the 1967 Arab-Israeli war, was restricting itself to "supporting U.S. efforts to stop Syrian support for terrorism".

Syria shelters leaders from several Palestinian resistance groups, including Hamas and Islamic Jihad.

Israeli Defense Minister Shaul Mofaz also said the Jewish state would brook no threat from Damascus.

"We must monitor what is happening there. The Americans have taken out a 'yellow card' on them, and were right to do so," he said on army radio.

U.S. President George W. Bush sent tensions with Syria soaring on Sunday when he said he believed the country was holding banned chemical weapons.