Yasser Arafat's speech pledging to reform his Palestinian Authority prompted mixed reactions in the Palestinian territories and abroad. DOMESTIC REACTIONS Some political analysts said the real test for Arafat now lies in whether he carries out substantial reforms rather than cosmetic changes, and whether he can introduce changes that please all the many sides making often contradictory calls for reforms.

"He (Arafat) is trying to absorb many critical feelings in Palestinian society and at the same time trying to deal in an open and flexible manner to avoid dangers and pressure - not only internal ones but external ones as well," political analyst Ghassan al-Khatib told Reuters. "The main test is the kind of reforms and changes that he intends to bring about.

These reforms could be cosmetic or they could be positive ones." Manuel Hassassian, professor of political science at Bethlehem University, said the timing of the call for reforms in a speech to the Palestinian Legislative Council (PLC) was crucial as demands intensified on all sides.

"I think the timing for introducing political reforms is important, not because these are considered as certain demands by Israelis and Americans, but because it has been a Palestinian demand as well - especially from people in the mainstream and moderates in Palestinian society," he said.

Palestinian lawmaker Hanan Ashrawi said Arafat must push ahead with promised reforms of the Palestinian Authority, saying pledges were not enough. "What he did was present a statement of intent about the need to address these issues," she told CNN television after Arafat made his address.

"But instead of taking actual concrete steps or presenting us with a work plan, he said 'why don't you discuss these issues and see what can be done'," said Ashrawi.

"The Palestinian people need to see immediate effective concrete steps that would translate this statement of intent into seriousness and implementation," she said.

Ashrawi also said Arafat should set a timetable for polls to choose a new leadership.

Ismail Abu Shanab, a senior member of Hamas in the Gaza Strip, adopted a wait-and-see approach but made clear he did not want change that would make the Palestinian Authority any more pliant towards Israel.

"We support the call for a reform and we see an urgent need for a complete reform," he said.

"What we need is real reform and not a cosmetic one, a true change and reform according to people's needs and not a cosmetic one according to what Israel and the United States wish."

U.S.

Meanwhile, the White House on Wednesday welcomed Arafat's speech, while a top Pentagon official questioned Arafat's ability to make the compromises necessary for peace.

"Yasser Arafat's words are positive," White House spokesman Ari Fleischer said.

"What's important, and the president will wait and see, is whether there will be any action."

For his part, Deputy Defense Secretary Paul Wolfowitz said Arafat did not have the vision and courage of Anwar Sadat, the Egyptian leader who signed a peace accord with Israel in 1979. Wolfowitz repeated the Bush administration's view that an end to Israeli military occupation of Palestinian territory and a Palestinian state was key to solving the Arab-Israeli problem.

"This conflict does not have a military solution. It has a political solution," said Wolfowitz, speaking at a forum at the National Press Club.

E.U.

The European Union head office reacted cautiously to Arafat's words.

EU spokesman Gunnar Wiegand said the 15-nation bloc would welcome "well prepared" reforms in the PA which has been criticized by many for widespread corruption. Any reforms should come quickly, Wiegand said.

"If there is a reasonable time frame and the reforms are well prepared, in the frame of a democratic process, then it will be very welcome," Wiegand told reporters.

"The EU will help as much as we can in the process ... We have a strong interest in the Palestinian Authority being based on a democratic basis."

ISRAEL

Israel's initial reaction to Arafat's speech was dismissive. "He did not say anything new. The Dead Sea is the same Dead Sea, and Arafat is the same Arafat," said Sharon's spokesman Raanan Gissin

PHOTO CAPTION

Palestinian President Yasser Arafat delivers his speech at the Palestinian legislative council in the West Bank City of Ramallah, May 15, 2002. Arafat, responding to widespread pressure for changes in the Palestinian leadership, called for sweeping reforms of the Palestinian Authority and preparations for elections. (Osama Silwadi/Reuters)
- May 15 2:07 PM ET