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Israel's defense minister said on Friday Palestinian Prime Minister-designate Ahmed Qurie can prove himself a peace partner only by launching a crackdown on militant groups once he takes office.

"As long as (Yasser) Arafat continues to be the Palestinian leader, I don't think there's a chance to move forward in the peace process," Shaul Mofaz told Israel Radio.

"On the other hand, there's a desire to choose a Palestinian prime minister... When (he) is elected, he will have to prove himself by his actions -- first of all, the dismantling of terrorist infrastructures," the hawkish defense chief said.

Mofaz made the remarks after President Bush said on Thursday a U.S.-backed Middle East peace plan, known as the road map, had stalled. He blamed what he called Arafat's failed leadership for the setback. Palestinian Labor Minister Ghassan el-Khatib said Bush's comments were "not constructive."

The decision by Arafat's Fatah faction to leave naming the 24-seat cabinet to the president and Qurie ensures Arafat, whom the United States hoped to sideline, will play a major role in shaping the next government.

Arafat and Qurie planned to consult in the coming days on the composition of a cabinet which Palestinian officials said would be formed next week.

HAMAS SUPPORTER IN CABINET

The cabinet will include a supporter of Hamas and a U.S. favorite, reformist Finance Minister Salam Fayyad, the officials said. Hamas has killed hundreds of Israelis in suicide bombings during a three-year-old uprising for statehood.

Qurie was named prime minister after Mahmoud Abbas resigned saying his efforts to promote the road map had been undermined by Arafat and Israel.

The plan, which calls for an end to violence and the start of reciprocal steps leading to a Palestinian state by 2005, has been battered by a surge of violence that has included suicide bombings and Israeli attacks on militant leaders.

Mofaz said in the radio interview he intended to keep up pressure on militant groups in the West Bank and Gaza Strip.

In the West Bank city of Jenin, an Israeli sweep for militants entered its second day. The army, which imposed a curfew on the city, demolished the family home of a suicide bomber who carried out an attack last year.

Last week, Israel issued an open-ended threat to "remove" Arafat after back-to-back Hamas suicide bombings killed 15 people. It accuses him of fomenting violence in the uprising, an allegation he denies.

The 191-nation U.N. General Assembly was due to meet in emergency session on Friday to take up a request by Arab nations for a vote on their demand that Israel stop threatening Arafat.

On Tuesday, Washington vetoed a Palestinian, Arab-backed resolution in the 15-nation Security Council demanding that Israel neither deport nor threaten Arafat in any way.

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