Arafat begins final journey

The coffin containing Palestinian leader Yasser Arafat has begun its journey from France to Cairo.

His death threw the Middle East into flux today but raised new hopes for a peace deal.

The 75-year-old Palestinian leader died from multiple organ failure in a military hospital outside Paris after a week in a coma.

With breathtaking speed, a new leader of the Palestine Liberation Organisation emerged, former prime minister Mahmoud Abbas, who is regarded as a moderate figure by western leaders.

There was an outpouring of grief for Mr Arafat in the Palestinian territory where his supporters wept in the streets. At least three Palestinians were killed and nine injured during an attack on a Jewish settlement as hardline group Hamas promised to step up its attacks.

But there was cautious optimism for the future of the stalled peace process after the emergence of Mr Abbas, who looks certain to be elected as Palestinian president and to become overall leader.

As Tony Blair flew to the White House, where reviving the peace process took top priority in talks with President Bush, British officials expressed optimism.

One said of Mr Abbas: "We have dealt with him in the past and found we can engage with him." Mr Blair and Mr Bush will try to agree a plan to reinvigorate the "road map" to a twostate solution to the Middle East. But officials said nothing would be published until later.

Foreign Secretary Jack Straw will attend Mr Arafat's funeral in Cairo tomorrow. He wil be buried in the West Bank town of Ramallah.

On news of his death, Palestinian gunmen opened fire on the heavilyfortified Netzarim settlement in the Gaza Strip in what they said signalled a new round of clashes.

The Isaeli army said it killed two men as they prepared to fire rockets.

Witnesses reported heavy fighting between the troops and militants from different organisations, with helicopters sporadically firing machineguns.

Dozens of Palestinian youths threw stones at soldiers at a checkpoint near Ramallah and similar sporadic clashes were taking place in other parts of the West Bank.

Israeli forces killed a 20-year-old man who the army said had been among 400 Palestinian protesters throwing bricks at Jewish settlers' cars and soldiers near the city of Hebron.

Tony Blair, who was flying out to Washington this afternoon, said of Mr Arafat: "Obviously he was an icon for the Palestinian people. Whatever differences we had with him, it is right to recognise that." He told GMTV: "The most important thing is that we reinvigorate the peace process."

Some believe Mr Arafat's death could be the opportunity needed to restart negotiations because Mr Bush had refused to deal with him.

Israeli prime minister Ariel Sharon said it could be a "turning point" for the Middle East.

The appointment of Mr Abbas was seen as an attempt by Palestinian leaders to avoid a divisive battle for power. He takes over with one huge advantage his predecessor never had: the Bush White House likes him.

Also known by his nom de guerre Abu Mazen, Mr Abbas was widely seen as the man who would bring peace when he was appointed prime minister of the Palestinian Authority last year.

Although a dispute with Mr Arafat ensured that he occupied the post for only four months, during that time the Americans came to respect someone they saw as untainted by direct involvement in terrorism.

As one Washington insider put it: "He is everything Arafat is not: sincere, responsible and conciliatory".

Downing Street and the Foreign Office share such sentiments and were equally depressed when Mr Abbas's short tenure as premier ended in acrimony-Meanwhile, as the Palestinian Authority announced a 40-day mourning period, heavily qualified tributes to Mr Arafat poured in from world leaders. Mr Bush described his death as a "significant moment" in Palestinian history.

"We express our condolences to the Palestinian people," he said, adding: "For the Palestinian people, we hope that the future will bring peace and the fulfilment of their aspirations for an independent, democratic Palestine that is at peace with its neighbours."

Chinese president Hu Jintao described Mr Arafat as a "great friend" to the Chinese people and a "brilliant leader" while Russian president Vladimir Putin said his death was a "big loss" for Palestinians.

The Vatican praised Mr Arafat as a charismatic leader who struggled to win independence for his people, and repeated its support of a sovereign Palestinian state alongside Israel.

Hardline Palestinian group Hamas, responsible for many of the suicide bomb attacks in Israel, said it would redouble its efforts in the wake of his death. In the West Bank and Gaza Strip, mosque loudspeakers blared out news of the death along with verses from the Koran.

In Gaza residents fired guns into the air while others hugged one another, saying: "Our father is dead."

Under Palestinian law Mr Arafat will be replaced by a caretaker president, parliamentary speaker Rawhi Fattouh, who will then organise elections within 60 days.