European Stars And Stripes (Newspaper) - December 20, 1988, Darmstadt, Hesse                                Page 28 the stars and stripes tuesday december 20,1988 israeli leaders agree on new coalition Jerusalem a leaders of is Rael s two main political blocs liked and labor agreed monday to form a coalition government Media report said. State run Israel radio and Israel television both reported that the two parties reached agreement when liked s prime minister Yitzhak Shamir agreed to de mands by the Center left labor party that labor be Given leadership of the powerful parliamentary finance com Mittee. Avi Pazner a top aide to Shamir said agreement had been reached on major issues but the prime minister was still trying to get smaller religious and nation Alist parties to join a Broad coalition. We cannot drink l Chaim yet he said referring to the traditional hebrew Toast meaning to  Israel army radio said the agreement seven weeks after parliamentary elections was reached in a meeting be tween negotiators Dan Meridor of the right Wing liked and Moshe Shahal of labor. It said labor and liked also settled dispute Over How Many jewish settlements would be built in the occupied West Bank and Gaza strip agreeing on a figure of five to eight new settlements in the next year. Labor had been trying to hold Down settlements because they could be an obstacle to the party s plan to Trade land for peace with the palestinians. Liked had promised As Many As 40 settlements to a nationalist party it was trying to lure into a coalition. The army radio report said any settlements after the first year would have to be approved by the finance ministry which would be headed by labor Leader Shimon Peres now the foreign minister. Peres agreed to the lesser Post of finance minister in the new government on the condition his party could also chair the finance committee giving labor virtual control Over the country s spending. The to report said that the agreement gave Shamir the right to approve which labor member would head the commit tee. Ron Milo Deputy prime minister and an aide to Shamir said meetings were Tobe held monday night with religious Par ties. Earlier monday both Shamir and Peres said a new government would be formed by monday night either with or without labor. Liked has been trying to form a Broad based coalition with labor to avoid hav ing to make concessions on religious is sues to the orthodox parties. At the same time it has been negotiating with Likely allies in a narrow government with the smaller parties. This weekend a chief Plo official said the Plo s renunciation of terror did not include attacks on israeli military targets. Coalition negotiations have been under Way since nov. 1 elections gave neither liked nor labor a Clear Man Date. Liked won 40 scats in the 120 Mcm bar parliament and labor 39, with the rest split among Small parties. The latest impasse arose Over liked s reported Promise to the nationalistic the Hiya party to build 40 new settlements in the occupied West Bank and Gaza strip during the government s four year ten ure. Negotiators for labor and liked have reportedly agreed that Shamir would Lead the proposed government for its full tenure and would not rotate his position with Peres As he did in the so called Unity government that both parties have led since 1984. Peres would serve As finance minister while Yitzhak Rabin would retain the defense ministry. Liked member Moshe Arens a former defense minister would serve As foreign minister. In the proposed joint government the two parties would have an equal number of ministers in the decision making inner Cabinet. Kemp from Page 1 going to speak on foreign policy during Cabinet meet Ings he said. Kemp s appointment was the eighth that Bush has made for his Cabinet with six More to go. The presi Dent elect has said he Hopes to Complete the task be fore the Christmas holidays. Transition sources said Bush has decided on Chi Cago mass transit official Samuel Skinner As transportation Secretary and said that appointment May be made tuesday. The leading candidate for Secretary of health and human services remains Louis Sullivan the Morehouse medical school president who would be come Bush s first Black Cabinet appointment. After announcing Kemp s appointment Bush remained at the microphone to Field questions on other topics. The president elect said he would take an intolerant View of any terrorism committed by the pales line liberation Organiza a which has renounced such acts As the Price for diplomatic discussions wit the Reagan administration. We would not Start off by showing any tolerance of Plo terror and i Don t care if it comes from a faction of the left or right or the Center or whatever he said. He seemed at Case a he fielded question even As he avoided giving answers to some. When a reporter said he was dancing around the Issue of How much to spend to combat homelessness Bush replied yes i would t have phrased it that Way but that s exactly what i be been  he added that he does t believe commitment to solving a problem is measured solely by Federal spend ing. There Are other ways to skin a cat he said. Bush shed Little Light on the appointments still to be made but said he wants an Energy Secretary knowledgeable about nuclear issues who can help increase the use of nuclear Power. Kemp was known As one of the most ardent adherents to the Supply Side theory of economics that presi Dent Reagan pursued highlighted by the Large income tax cuts of 1981. When the Federal deficit ballooned Kemp astounded fellow republicans by declaring the deficit did t count. In their prepared remarks. Bush and Kemp skipped Over their Campaign rivalry. Kemp had sought the presidential nomination with an Appeal to Bedrock conservative issues and he had said often that Bush would raise taxes despite Bush s Campaign Long pledge not to do so. Asked whether he had assurances that Kemp would shed his critic s role. Bush said i Hope he has t shed it. I want the objectivity of his judgment and knowing Jack i la get  when asked about his political plans Kemp said Haven t ruled out seeking office some Day nor have i ruled it  Kemp s3, a former professional football player served 18 years in Congress from a Buffalo n.y., District before seeking the Republican presidential Nomi nation this year. In Congress Kemp has carved out a reputation not Only for his anti tax Supply Side economic policies but also for his efforts to Appeal to Black voters. His decision to quote King in his Brief remarks was Evi Dence of that. Bakker from Page 1 support for various policies and so Forth. They talked about their Christian beliefs. They talked about the Robertson Campaign Fitzwater continued referring to to evangelist Pat Robertson s at tempt to win the Republican presidential  was just a Friendly  at the time that Bush met with Bakker and his wife Tammy Faye in november 1985, Fitzwater was Bush s vice presidential press Secretary. Bush was gear ing up for his presidential run As was Robertson Whon Bush ultimately Defeated resoundingly in the _ Down from his pal been sexually involved Republican primaries. In March 1987, Bakker stepped ministry admitting that he had be with former Church Secretary Jessica Hahn. A Story in the sunday opinion Section of the Washington Post dealt with Bush s ties to the fallen Broad cast preacher through the i98s meeting and through three close Bush associates who also were hired a consultants by Bakker. Fitzwater characterized As mostly accurate the Story which detailed Bakker s employment of former Bush press Secretary Pete Teeley Doug cad religious Liaison for the Bush Campaign Anco Dean Burch former head of the Federal communications commission and the Republican National committee. Fitzwater said he had no quarrel with the Story except the innuendo there was something wrong with he said however that there was no talk of Bakker taking an administration Job As was alleged by Bak Ker 5 former personal bodyguard Don Hardister according to the Post. Jane s from Page 1 on defense in the coming years will Force a review of the . Military presence around the Globe. "1 think the new administration will conduct a re View of the worldwide presence of the United state defense establishment he told the stars and stripes. South Korea also could be targeted for troop reductions he said. All military commanders almost take it for granted there will be some reductions said Fouquet who also is the european editor for Jane s defence weekly. On the potential of a . Troop reduction in Central Europe Fouquet writes that such cuts could merely amount to the withdrawal of a division or More from Cen trial Europe but at the risk of worrying the nato allies. However Fouquet argues that across the Board Cut were made in . Forces in Europe during the Vietnam War with no major discernible  news briefs Marcos leaves Hospital but will remain under care Honolulu a deposed philippine president Ferdinand Marcos who contends he is too ill to travel for arraignment on racketeering charges will remain under round the clock care for congestive heart failure his doctors said. An ambulance took Marcos Home sunday from the Hospital where his doctors said medication and rest had controlled the ailment a court appointed doctor concluded in lat october that Marcos was Well enough to travel. It was not known whether Marcos hospitalization would affect a court order requiring a trip to new York for an arraignment. Marcos has lived in Honolulu since his ouster in a february 1986 civilian military revolt. He and his wife were indicted in new York accused of plundering their Homeland s Economy and stashing millions in the United states. 2 held in gang shooting that left la teen dead los Angeles a two men were arrested sunday in connection with a gang Sheet ing in a crowded shopping mall that left a teen age bystander dead. Roger Leon White 22, of Sepulveda and Wil Liam stalling 18, of Pacoima were held without bail in the Friday shooting of Sergio Alpuche 16, of Van Guys police said. They said the shooting occurred after Fisl Flohl broke out Between to members of rival Gangland a third gang member opened fire. Alpuche who was not a gang member was hit in the Chest and died in a Hospital saturday. Britain reportedly to build its own heavy Battle tank London a Britain will develop its own heavy Battle tank rather than opt immediately for the .-built Abrams m1a1 of Gener Al dynamics press reports said monday. The unattributed reports apparently inspired by government officials said the official announcement was expected on tuesday. The decision Means that Britain s Only tank manufacturer Vickers defense systems ltd., will continue development of its 72-ton challenger 2tank, which is still on the drawing Board. Reagan Farewell address tentatively set for Jan. 11 Washington a president Reagan s Farewell address to the nation is Likely to be Pajan. 11 but might be on some other Date in mid january his spokesman said  Marlin Fitzwater had previously announced that Reagan would make such an address from the Oval office in the closing Days of Bis administration