By LARA SUKHTIAN, Associated Press

Palestinian Prime Minister Mahmoud Abbas, weakened by a power struggle with Yasser Arafat, submitted his resignation Saturday — a move that dealt a serious blow to a U.S.-backed peace plan.

Abbas, who might have been ousted anyhow in a confidence vote in parliament next week, had his resignation letter delivered to Arafat by two senior officials before addressing the legislature in a closed-door session to explain his decision.

Arafat accepted the resignation soon afterward, said a Palestinian official who spoke on condition of anonymity.

Abbas' departure leaves Israel and the United States without a Palestinian negotiating partner, at least temporarily. Both nations have said they will not do business with Arafat, whom they accuse of fomenting terrorism and consider an obstacle to peacemaking.

Abbas has been frustrated by the constant wrangling with Arafat, his aides said. He was also hurt by the near-collapse of the U.S.-backed "road map" peace plan as militants and Israeli forces continued to attack each other.

Even if he hadn't resigned, Abbas might have been forced out. He faced a vote of confidence in parliament in the coming days, and there was growing dissatisfaction in parliament with his performance and his difficulties with Arafat.

Arafat's international standing could further be weakened if he is seen as having engineered Abbas' ouster.

Abbas and Arafat had been at odds ever since Arafat appointed the prime minister under intense international pressure in April. The latest standoff was over control of the security forces. Abbas, backed by the United States, demanded command over all men under arms, but Arafat refused to relinquish control over four of the eight security branches.

Abbas said he will not clamp down on militants, as required by the U.S.-backed "road map" peace plan. However, being in control of all the security forces would give him greater authority in renewed negotiations with Hamas, Islamic Jihad and renegades from his own Fatah movement.

Earlier this week, Abbas told parliament it must either back him or strip him of his post, saying he is not clinging to the job and would just as soon step down.

Israel's defense minister has threatened to expel Arafat. Israel's government has considered this idea in the past, but has been held back by U.S. opposition and by warnings of its security chiefs that Arafat could do more harm abroad than isolated at his West Bank headquarters.

However, the threshold for taking action against Arafat could be lowered by Abbas' departure.

ISRAEL NEWS AGENCY