Chao Shou-po (趙守博) will probably stay in his post as director-general of the KMT's Organization and Development Committee.
Chao earlier had tendered his resignation over a dispute regarding the party's nomination of the coveted legislator-at-large seats.
The senior KMT official had come under attack last week from Wu Poh-hsiung (吳伯雄), one of the party's five vice chairmen.
Wu was upset that Chao and other senior KMT officials had been included on a list of "recommended" legislator-at-large hopefuls. Chao is a member of a seven-man panel charged with screening candidates.
Chao appeared to have changed his mind yesterday after meeting with party Chairman Lien Chan (連戰), who wants him to remain in his post.
Chao said Lien told him to "grin and bear it," though he had originally wanted Lien to approve his resignation.
"I'll make an all-out effort to fulfill my duty as long as I hold this position," Chao said.
Chao withdrew his registration for the at-large seat on Wednesday after Wu raised doubts about the fairness of the nomination process.
Other senior KMT officials who have been attacked for conflicts of interest have also taken steps to neutralize criticism directed at them. Chiang Ping-kun (江丙坤), executive director of the KMT's National Policy Foundation, on Sunday quit the nine-man panel in charge of the second-stage screening of nominated members.
He'll continue his bid for legislator-at-large.
The party's deputy secretary-general, Huang Cheng-hsiung (黃正雄), a member of the first-stage panel, has dropped his bid for a seat. So too has former National Assembly speaker Chen Ching-jang (陳金讓), a member of the second-stage panel.
Legislator-at-large seats are allocated to political parties based on their total share of the vote in the legislative elections; each party prepares a list of candidates to fill those seats.
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