Jerusalem: Israel dismissed a UN resolution demanding it retract threats to remove Yasser Arafat while Palestinians hailed the vote as another sign of support for their leader.

The overwhelming support in the UN General Assembly on September 19 - 133 nations voted in favour of the measure – comes a day after the incoming Palestinian Prime Minister stridently defended Arafat, saying he is key to peace efforts and the United States should treat him as a real partner.

Prime Minister-designate Ahmed Qureia's criticism of US policy on September 19 was the strongest sign yet he does not plan to challenge Arafat, who Israel and the United States, which opposed the UN resolution, tried to circumvent by pressing for the creation of the post of Prime Minister.

Instead, Arafat appears to have maintained a central role, handpicking Qureia after the resignation of the first Prime Minister, Mahmoud Abbas, and moving to shape a Cabinet of loyalists from his Fatah party.

Regardless, Bush said on September 18 that Arafat "had failed as a leader" and accused him of forcing out Abbas, who resigned on September 6 after wrangling with Arafat for months.

Qureia called Bush's statement "regrettable'' and said it "does not serve the peace process''.

"Arafat is the elected leader of the Palestinian people and represents the will of these people,'' Qureia said. "President Arafat is a real partner.''

Agencies