Netanyahu, Peres hold first post-election talks

Agreements lead to speculation of Likud-Labor coalition

June 4, 1996
Web posted at: 4 p.m. EDT (2000 GMT)

From Jerusalem Bureau Chief Walter Rodgers

JERUSALEM (CNN) -- Prime Minister-elect Benjamin Netanyahu said he and the narrowly defeated Shimon Peres agreed Tuesday on important issues, fueling speculation that Netanyahu may ask Peres' defeated Labor Party to join his Likud Party government. Their two-hour meeting on security issues and the transfer of power was their first face-to-face exchange since Netanyahu's victory in last week's election.

Afterward, the two men smiled and shook hands, and Netanyahu addressed the outgoing prime minister, once his bitter political rival, as "Shimon." The country is witnessing "the coming together of Israeli democracy," Netanyahu said.

Peres didn't rule out a Likud-Labor alliance, but said Labor should wait until Likud makes an offer. Under a "national unity" coalition, Peres or some of his ministers might join Netanyahu's cabinet to help continue peace talks with Palestinians, who are clearly worried about Netanyahu. "He is surrounded by very extreme right-wing people," Palestinian Council member Ziad Abu Ziad told CNN.

Flashpoint

Symbolic of the potential flash points awaiting the new Israeli government is Orient House, a building in the eastern part of Jerusalem. The two-floor stone building is used by Palestinians as a diplomatic meeting place. But Jerusalem Mayor Ehud Olmert, a Netanyahu supporter, wants to ban such meetings, not only at Orient House but throughout the city. "Every activity of the Palestinian Authority -- in every part of Jerusalem -- is illegal," Olmert said.

Palestinians want Jerusalem as the capital of a Palestinian state, something Netanyahu vows he'll never allow to happen. Ziad fears the stalemate will lead to new violence. (125K AIFF or WAV sound) A Likud-Labor alliance would help allay the fears of Israel's Arab negotiating partners, who worry that Netanyahu will renege on peace commitments made by Peres.

Handling Hebron

Asked Tuesday whether he would keep Peres' promise to the Palestinians to pull troops out of most of Hebron this summer, Netanyahu said he had not made up his mind. As a candidate, he said he would keep troops in Hebron, the last West Bank city under Israeli occupation, for at least three more years.

Netanyahu talked tough as a candidate, but since winning the elections he has been intentionally vague about his positions. His advisers are now hinting he is ready to compromise on key issues, including Jewish settlements in the West Bank and Gaza Strip, and territorial compromise on the Golan Heights.

During the campaign, Netanyahu said he would invite Labor to participate in his government, but he has not repeated the offer since. For now, he is conducting coalition negotiations with smaller religious, centrist and rightist factions.

The Associated Press contributed to this report.

Related story:

• Pivotal Elections: Israel

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