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    After U.S. embassy attack, West uneasy over Saleh's role in Yemen

    SANAA, Oct 1 (Reuters) - Seven months after he reluctantly

    handed over the presidency, Ali Abdullah Saleh's continuing sway

    over Yemen is worrying Gulf neighbours and Western nations who

    fear that the political transition could descend into chaos.

    While Saleh is held responsible by many Yemenis for the more

    than 2,000 deaths during last year's uprising, it was the

    storming of the U.S. embassy on Sept 13 that appears to have

    jolted Western countries into changing their view of a man long

    seen by Washington as its best bet for containing militants.

    Soldiers of two units under the control of Saleh's relatives

    allowed hundreds of protesters through checkpoints around the

    embassy, a Yemeni security source and Western diplomats said.

    Breaking through to the inner building, they ripped plaques and

    lettering from outer walls and tried to smash secure glass

    doors.

    President Abd-Rabbu Mansour Hadi has promised an

    investigation into the incident, which followed protest calls by

    Sunni cleric Abdul-Majeed al-Zindani - designated a global

    terrorist by the United States since 2004 - and the Zaydi

    Islamist group Ansarallah, also known as the Houthis.

    One of Saleh's sons used Facebook to deny accusations that

    embassy guards had acted suspiciously. He said the Interior

    Ministry should have sent in riot police.

    "We share the concern over the role that the former

    president and those hardcore elements around him are playing

    right now," a senior Western diplomat in Sanaa said, adding they

    were undermining the government and hindering the transition.

    "We do have concerns about their resistance to following the

    legitimate orders of President Hadi."

    STABILITY IS A PRIORITY

    Restoring stability in Yemen has become an international

    priority for fear that Islamist militants will further entrench

    themselves in a country neighbouring top oil exporter Saudi

    Arabia and lying on major world shipping lanes.

    The writ of central government authority has further

    weakened in the chaotic unraveling of Saleh's system of rule.

    The uprising lifted the lid on myriad social and economic

    problems facing an impoverished country of 24 million people.

    Of all the complications to reestablishing state control,

    including southern secessionists, a Zaydi Shi'ite revival

    movement tussling with Sunni Islamists and a covert U.S. missile

    war on militants, the role of Washington's former strongman in

    Sanaa has emerged as perhaps the most pressing.

    Despite the immunity granted to him under the power transfer

    deal, Saleh could still face the fate of Egypt's Hosni Mubarak

    as activists push for ways to have him prosecuted. Mubarak was

    sentenced to life imprisonment in June for complicity in the

    deaths of protesters during Egypt's uprising.

    Sidelined since Hadi's election in February, Saleh still

    wields influence through his control of the General People's

    Congress (GPC) party, a ruling coalition partner, and through

    powerful relatives who run elite military and security units.

    Saleh has warned in recent comments that the Arabian

    Peninsula state's transition process could descend into chaos,

    depicting himself as being central to Yemen's territorial unity.

    Further, forces loyal to Saleh's relatives have repeatedly

    mutinied against Hadi's efforts to reorganise the armed forces,

    staging attacks on the Interior and Defence Ministry buildings.

    But pressure on Saleh has grown in recent months.

    Thousands of Yemenis have protested against the U.S.- and

    Saudi-backed power transfer deal which offered Saleh his

    immunity from prosecution in exchange for stepping down.

    The government agreed last month to set up a commission of

    inquiry into violations committed during last year's uprising,

    and a transitional justice law could also be passed soon.

    "People have an obligation to fulfill the terms (of the

    transition) and not change them," the diplomat said. "But that

    doesn't mean we have to sit by if there is evidence that Saleh

    is violating the laws of Yemen now and it doesn't mean he

    shouldn't be held to account for that."

    EMBASSY ATTACK A WATERSHED

    The embassy incident has spurred Western states shepherding

    the transition into action.

    Senior diplomats of ten countries, including Gulf Arab

    states, European Union members, the United States and Russia,

    agreed in Sanaa two weeks ago to recommend their governments

    start preparing possible measures against transition "spoilers".

    "They agreed there should be some effort to gather evidence

    that might point the finger at those who might be considered in

    violation of U.N. Security Council resolution 2051," said one

    who was involved in the meeting.

    The June resolution calls for a smooth transition,

    accountability for "all those responsible for human rights

    violations and abuses", and "security sector reform and changes

    in senior appointments in the security and armed forces".

    The diplomat said names were being collected among

    supporters of Saleh, "extremist elements" of the Sunni Islamist

    Islah party - an apparent reference to Zindani and other clerics

    - and figures from the southern secessionist movement.

    "I don't think there's anything imminent regarding

    sanctions," a U.N. diplomatic source said in New York, but he

    added: "Sooner or later it will come to that." He said Russia

    and China were on board with the U.N. moves.

    Analysts say Saleh, his party and others may be able to

    avoid that fate if they contribute to a national dialogue

    intended to map out a new political system this year.

    "Can we force the GPC to accept the idea of a democratic,

    civilian state in the dialogue and that rivalry should be

    regulated through the ballot box? We need the GPC to accept

    this," said political scientist Mohammed al-Mutawakkel.

    STILL IN YEMEN

    The fourth Arab leader to be unseated in "Arab Spring"

    protests, Saleh spent several weeks in the United States for

    medical treatment just before he left office. The U.S.

    ambassador in Sanaa said two weeks ago it would not be possible

    to grant him a visa for now, but gave no more details.

    Once abroad, Saleh would be open to petitions under

    international law or domestic laws of any country he stayed in.

    He recently said he had no intention of leaving Yemen.

    "Revenge dominates in Yemeni society. If people feel wronged

    and no one gives them justice they will try to get it themselves

    in any way," said Human Rights Minister Hooria Mashhour.

    At least 129 activists disappeared during the uprising and

    hundreds of "enforced disappearances" throughout Saleh's rule

    still remain unaccounted for, provoking a campaign of portraits

    on public walls by activists seeking redress.

    The capital still bears signs of last year's confrontation,

    with pock-marked and destroyed buildings such as Yemenia Airways

    offices in Hasaba. The fear remains that street fighting between

    former allies under Saleh's rule will return, or that

    Houthi-Islah confrontations could spread.

    Political analyst Abdulghani al-Iryani said there was little

    chance of the old order reestablishing itself, though Saleh and

    the north Yemeni tribal and religious elites would try to resist

    the shift to decentralisation.

    "It's impossible. If you look at the historical patterns,

    his regime survived for so long against the law of gravity,"

    Iryani said.

    (Additional reporting by Louis Charbonneau in New York, Editing

    by Sami Aboudi and Samia Nakhoul/Janet McBride)