HIGHLIGHTS: Presidential & Parliamentary Elections Within 6 Months||Election Committee Meets Within 2 Days||Sharon Wants Interim Government Imposed on Palestinians|| STORY: Facing pressure from the United States, Europe and his own people, Palestinian leader Yasser Arafat agreed Thursday to hold presidential and parliamentary elections within six months. Arafat's decision came as Palestinian legislators mounted their most high-profile challenge yet to the Palestinian leader, calling for elections within a year and a new Cabinet within 45 days.(Read photo caption)

Previous attempts to reform Arafat's administration have led to few significant changes, with Arafat ignoring laws passed by parliament as well as decisions by the judiciary. The proposed election would be the first time Arafat faced the voters since he was overwhelmingly elected president of the Palestinian Authority in 1996.

Ahmed Abdel Rahman, secretary general of the Palestinian Cabinet said that Arafat has called for a meeting of the Central Elections Committee within two days.

Israeli officials were skeptical of the proposals.

Palestinian legislators quickly put together a reform plan Wednesday that called for elections and a smaller Cabinet and approved it Thursday. Soon afterward, Abdel Rahman announced Arafat's own plans to hold elections.

Legislators from Arafat's Fatah movement had also demanded the creation of the post of prime minister and called for empowering it with the day-to-day operations of the Palestinian Authority. Arafat's proposal made no mention of a prime minister.

The legislators also called for streamlining the Palestinian Authority's eight security services. Arafat's proposal did not address this issue.

Palestinian legislator Hanan Ashrawi said elections should be held on all levels to bring new people into the government.
Speaking before Arafat's announcement, legislator Hussam Khader, was pessimistic the Palestinian leader was serious about making meaningful changes.

SHARON WANTS INTERIM GOVERNMENT IMPOSED ON PALESTINIANS

Sharon has urged the United States and other nations to reject Arafat's administration and appoint an interim Palestinian government for a year to carry out reforms, Sharon's foreign policy adviser Danny Ayalon said.

Sharon proposed the new government be established whether or not the Palestinians accept it, the Yediot Ahronot daily reported. "The free world must force this government on the Palestinians," the daily quoted him as saying.

PHOTO CAPTION

Palestinian leader Yasser Arafat, center, walks in the West Bank town of Ramallah Wednesday May 15, 2002 with the Palestinian legeslative council spokesman Ahmad Qure, left, into the session where Arafat is to deliver a speech to mark "Al Naqba Day", or Catastrophe Day, the anniversary of the Palestinian uprooting as a result of Israel's creation in 1948. Arafat said that he was not giving up on the search for peace with Israel, despite Israel's recent military raids into Palestinian-controlled areas. (AP Photo/Nasser Nasser)