Crisis over Shas’ Move to Leave the Government Appears to Abate

The flurry of concern over a possible crisis in the Labor-Likud unity government appeared to abate today as Premier Shimon Peres offered comproise proposals aimed at keeping the small Sephardic religious party, Shas, within the coalition.

Peres and Deputy Premier David Levy, a powerful voice in Likud, emerged from a meeting this morning expressing optimism. Levy commended Peres for taking the issue into his hands. But he repeated his warning of yesterday that the defection by Shas could lead to serious complications.

“The Prime Minister understands that one must make the utmost effort to keep Shas inside the coalition and that there be no development which will endanger the existence of the national unity government,” Levy said.

Shas leader Rabbi Yitzhak Peretz formally submitted his resignation to Peres at yesterday’s Cabinet meeting. It becomes effective tomorrow unless withdrawn. Shas, a client of Likud, is embroiled in a dispute over portfolios with the National Religious Party, backed by Labor. The faction’s importance lies not in its four Knesset mandates but in its threat to tarnish the credibility of Likud as patron if its political demands are not met.

SHAMIR CERTAIN CRISIS CAN BE SOLVED

Deputy Premier and Foreign Minister Yitzhak Shamir, leader of Likud, cut short a Latin American visit and cancelled an appearance in New York to hurry home to deal with the situation. He arrived today and told reporters at Ben Gurion Airport that he was sure the crisis could be solved “with good will” and promised to act forthwith to end it. Continuation of the present broad unity government is essential for the good of the country, Shamir said.

Levy declared over the weekend that Likud would honor its commitments to Shas. He hinted vaguely that Likud might abandon the unity coalition over the issue. But most observers believe such a crisis is not imminent since neither of the major parties is interested in breaking up the unity government at this stage.

NATURE OF THE DISPUTE

The dispute between Shas and the NRP appeared to have been resolved last week when the former agreed to accept the Interior Ministry and the latter the Ministry of Religious Affairs. But the NRP demanded that the several religious functions hither to within the purview of the Interior Ministry, be transferred to Religious Affairs.

Peretz, a Minister-Without-Portfolio, balked. He demanded in addition that a member of his faction be named Deputy Minister of Housing. There were no details today of the compromises offered by Peres. According to one report, the Interior Ministry, under Shas, would retain control over the local religious councils.

The NRP may be forced to agree. Indeed, one NRP Knesset member, Avner Sciaki, spoke out today in favor of reaching an understanding with Shas in order to preserve the unity coalition. He indicated that the NRP, whose Knesset faction was reduced to four in last July’s election, is not interested in joining either Labor or Likud in a narrow coalition should the present national government come apart. There is reason to believe that Shas, basically, holds the same view.