RAMALLAH Ñ For the first time, senior Palestinian officials are warning of a collapse of the regime of Yasser Arafat.

The officials described a state of chaos in the Palestinian areas of the West Bank and Gaza Strip amid an escalating economic and military crisis.

They said Arafat, chairman of the Palestinian Authority, has refused to address the issue. On Monday, Arafat left Gaza for Morocco.

Ziyad Abu Amr, a leading PA official, warned that Palestinian society faces collapse unless Arafat launches immediate reforms. Abu Amr said the PA is collapsing and authority has been captured by armed Palestinian groups.

Abu Amr said that so far Arafat has refused to order any changes in his regime. This includes a long-awaited Cabinet reshuffle.

PA Attorney General Khaled Al Qidwa agreed. Al Qidwa said armed groups have taken control of many Palestinian areas.

Over the weekend, the Palestinian Wafa news agency urged for an end to Palestinian attacks against Israel. The agency said the attacks are counterproductive and hurt the Palestinian cause abroad.

For his part, Arafat has warned of an impending collapse of the PA. Israeli sources said Arafat told Italian leaders last week that he would be assassinated by Palestinians unless the United Nations sends international observers.

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