Outgoing US Secretary of State Colin Powell was asked to step down after telling President George W. Bush he wanted more power to confront Israel over the peace process, according to London's Sunday Telegraph.

At the same time, the Sunday Times reported that Secretary of State-designate Condoleezza Rice is convinced Yasser Arafat's death has created a unique opportunity and she believes the revival of the peace process leading to a Palestinian state will be her top priority.

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