Palestinian killed in clash; Arafat holds talks

JERUSALEM -- Israeli troops raided a suspected militant group's hideout Wednesday, sparking a gunbattle that killed an Israeli soldier and a Palestinian, while Yasser Arafat met with top officials to map out leadership changes in the Palestinian Authority.

Soldiers in the West Bank village of Saida stormed a hideout used by the militant Islamic Jihad group and were fired on by three militants, the army said. One soldier was killed and another slightly injured. Troops fired back, killing a 21-year-old Palestinian and injuring two others, who were arrested.

Arafat was meeting with officials from his Fatah Party Wednesday to discuss the expected appointment of Mahmoud Abbas for the new position of prime minister and the naming of a new Cabinet.

Arafat was expected to sign by today a bill creating the post of prime minister.