The Assembly voted 124 in favour and 4 against the Arab-sponsored resolution, with 10 abstentions.

The United States, Israel, Micronesia and the Marshall Islands voted against the resolution, which upgrades the Palestinian observer mission to a new status of a non-voting member in the 185-member Assembly.

No nation in the Assembly has a veto, unlike those in the 15-member Security Council, meaning the resolution was adopted with the majority vote.

With the new designation, Palestinian representatives can raise issues of the peace process in the Assembly and co-sponsor draft resolutions on West Asia peace. The representative cannot vote or put forward candidates for UN committees, such as the Security Council. But more important, the vote affirms internationalsupport for Palestinians in the protracted West Asia peace process.

The resolution notes that Palestinians are full members of the Arab League, the group of 77 and other regional organizations and that ``the Palestinian Authority was established on part of the occupied Palestinian territory.''

Meanwhile, in Washington, State Department spokesman James Rubin said yesterday that the US is disappointed over the General Assembly's decision to upgrade the status of the PLO.

``We are pushing very hard, we believe there is a sense of urgency in getting closer on how to put the peace process back on track. Therefore, it is no time to be seeking symbolic victories, and that is why we think this was a mistake,'' he said at his daily briefing yesterday.

AFP adds from Jerusalem: Israel said today it rejected a vote to raise the status of the Palestinian delegation despite its own objections and those of the United States. ``Israel categorically rejects the UN General Assembly's decision, which gives the PLOunjustified additional privileges,'' the foreign ministry said in a statement.

``This decision creates a negative precedent and contradicts the principles of the peace process, and the spirit of the Oslo Accords (on Palestinian autonomy),'' it said.

A Gaza City report said the Palestinians hailed the vote.

``It's an international recognition of Palestinian rights and the international legality of our cause,'' said Palestinian leader Yasser Arafat's spokesman Nabil Abu Rudeina.