Palestinian Prime Minister Ahmed Qorie tendered his resignation on Saturday after complaining of chaos in Gaza following kidnappings by gunmen demanding an end to corruption in the security forces.
But President Yasser Arafat rejected Qorie's resignation and ordered a security shake-up in Gaza, where the troubles added to fears of mayhem ahead of a planned Israeli withdrawal.
Arafat is under increasing pressure at home and abroad to trim a jumble of forces and remove officials accused of graft, but such changes may whittle away his powers and little came of previous promises of reform.
Speaking after a cabinet meeting, Prime Minister Qorie appeared to suggest his resignation was not final if he got what he wanted. Cabinet member Azzam al-Ahmad said, "there would be a new position" if Arafat's moves proved satisfactory.
"There will be another meeting on Monday to see where we stand," Qorie told reporters.
A sense of growing anarchy gripped the Gaza Strip, where kidnappers demanding an end to corruption in the security services briefly held four French aid workers and two local officials, including the area's police chief, on Friday.
All were released unharmed.
In apparent response to the gunmen's demands, Arafat fired the police commander and appointed a cousin, Major General Mussa Arafat, as overall security chief for Gaza. He also announced its 12 security services would be combined into three.
But there was little sign it had appeased the kidnappers, while thousands of protesters marched in Gaza City to condemn the move. They said it would bring no change.
"No to corruption. Yes to reform and change," activists from Arafat's Fatah group shouted as gunmen from the group's military wing, al-Aqsa Martyrs Brigades fired into the air.
Some Palestinians worry lawlessness may only intensify as militant groups and security services jockey for position to fill the vacuum after any evacuation of Jewish settlements.
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