The elections to the 12th Knesset were held on I November 1988. Likud won 40 seats, Labour 39, Shas (Sephardi Torah Guardians) 6, Agudat Israel 5, the Citizens Rights Movement 5, National Religious Party 5, Democratic Front 4, Techiyah and Mapam 3 each. Tsomet, Moledet, Shinui and Degel Hatorah 2 each, the Progressive List and the Arab Democratic Party I each. This again meant a deadlock. None of the two major parties could form a viable coalition. Protracted negotiations ensued, requiring once again the intervention of President Herzog, who suggested that the format of the outgoing Government of National Unity be preserved. Since Labour lost 5 seats in the 1988 elections, the principle of rotation Was dropped. Following are the Basic Guidelines of the new government. They do not differ from those of the previous government. It will continue and expand the peace process; consolidate the peace with Egypt and ensure the security of the northern settlements. It will seek to maintain the ties of friendship and understanding with the U.S. and re-establishment of diplomatic relations with the USSR. Mr. Shamir would serve as Prime Minister for the entire four-year term of the government; Mr. Peres would be Vice Premier and Finance Minister; Mr. Rabin will continue as Defense Minister and Mr. Arens will become Foreign Minister. Text:
At the center of the activity of the National Unity Government presented to the 12th Knesset are the following tasks:
1a. Recognition of the shared fate and common struggle of the Jewish people in the homeland and the Diaspora of exile.
b. A sustained effort to create the social, economic and spiritual conditions to attain the State of Israel's central aim: The return of Diaspora Jews to their homeland.
c. Boosting immigration from all countries, encouraging immigration from western countries, and consistently struggling to save persecuted Jews by bringing them to safety and realizing their right to immigrate to Israel.
2. The central policy objectives of the Government during this period are: Continuing and expanding the peace process in the region;. consolidating the peace with Egypt; and ensuring the s--curity of the northern settlements.
3a. The Government will act to cultivate friendly relations and mutual ties between Israel and all peace-loving countries.
b. The Government will continue to foster the deepening of the ties of friendship and understanding between Israel and the U.S.
c. The Government will strive for a resumption of diplomatic relations with the Soviet Union, the establishment of diplomatic relations with China and with other countries which have not yet formed diplomatic ties with Israel.
4. Israel's foreign and defense policies will aim to ensure the country's independence, to strengthen its security, and to establish peace with all its neighbors.
5. The Government will strive to increase the strength, deterrent capability and endurance of the IDF against any military threat, and will take firm action against terrorism, regardless of its source. The IDF and the other security forces will continue to ensure the safety of all the residents, and will act forcefully in order to curb the riots, prevent the violence, and restore order.
6. United Jerusalem, Israel's eternal capital, is one indivisible city under Israeli sovereignty; free access to their holy places and freedom of worship will continue to be guaranteed to members of all faiths.
7. The Government will continue to place its desire for peace at the head of its concerns, and will spare no effort to promote peace.
8. The Government will work to promote and strengthen the mutual ties with Egypt in accordance with the peace treaty'
The Government will call on Egypt to fulfill its part of the peace treaty with Israel, and to give it substance and content in keeping with the spirit of the treaty and with the intentions of its signatories.
9. The Government will work to continue the peace process in keeping with the framework for peace in the Middle East that was agreed upon at Camp David, and to resume negotiations to give full autonomy to the Arab residents in Judea, Samaria and the Gaza District.
10. Israel will call on Jordan to begin peace negotiations, in order to turn over a new leaf in the region, for the sake of [the region's] development and prosperity. The Israel Government will consider proposals for negotiations.
11. The Arabs of Judea, Samaria and the Gaza District will participate in the determination of their future, as stipulated in the Camp David Accords. Israel will encourage representatives of Judea, Samaria and the Gaza District to take part in the peace process.
12. Israel will oppose the establishment of an additional Palestinian state in the Gaza District and in the area between Israel and Jordan.
13. Israel will not negotiate with the PLO.
14. During the term of office of the Unity Government, no change will be made in the sovereignty over Judea, Samaria and the Gaza District except with the consent of the Alignment and the Likud.
15a. The existence and development of settlements set up by the governments of Israel will be ensured. An attached appendix (sections "D," "E," and "F) elaborates on various issues, whose execution will be agreed upon together with other issues in this framework.
b. Between five and eight settlements will be established within a year. (Their names are elaborated on in the attached appendix (section "A').
c. The settlements elaborated on in attached appendix (sections "B" and "C') will be established in subsequent years as per a timetable to be determined in an agreement between the prime minister and the vice premier, toward the conclusion of the first year.
16. The Government will do everything necessary to ensure peace for the Galilee.
17. The socio-economic policy will work to:
a. Reduce the country's economic dependence by cutting the balance of payments deficit, increasing exports, and lessening imports.
b. Maintain the stability of the economy and further reduce the inflation rate. c. Renew economic growth while maintaining full employment.
d. Change the structure of the economy by enlarging productive and export sectors on the basis of competition, reducing the proportion of the public sector, and lessening government involvement.
e. Encourage and advance the settlements areas and development towns and areas throughout the country; distribute the [economic] burden fairly among all sectors of the public; and adequately maintain the systems of education, health, housing and social services.
f. Solve the grave hardship of the retarded, of children under the age of 14 in boarding homes, and of minors-offenders in the prisons.
18. To achieve these goals, the Government will work to:
a. Reduce public-civilian and defense expenditure and consumption, and curb private consumption,
b. Reach a socio-economic agreement with the Histadrut [Labor Federation], the employers, and other factors in the economy.
c. Encourage various kinds of national saving.
d. Promote and develop the capital market by gradually reducing the Government's role therein.
e. Continue tax reform in order to encourage productivity, broaden [tax] collection, and [provide for] just distribution of the tax burden.
f. [Provide] support for the basic commodities so as to ensure regular supply, and as a means of agricultural guidance, while striving for a fixed rate of consumer price supports.
19. The Government will act to:
a. Expand the infrastructure for technological services and render it more efficient in order to develop industries, increase investment and establish high-technology enterprises.
b. Bolster agriculture and increase exports of agricultural produce. c. Encourage domestic and incoming tourism.
d. Maintain housing policies designed to absorb new immigrants and provide housing for young couples and large families.
e. Build apartments for rental at reasonable rates, especially for young couples and large families.
f. Expand and intensify Project Renewal.
g. The Government will act toward a comprehensive reform in the civil service, with a special emphasis to be placed on the role of the public service in improving services to the citizen.
20. The Government will assist sectors of national-social preference, including the settlement sector (within the framework of the Recovery Plan), and [will assist] the populace of development areas.
21. The Government will act to prevent emigration and to bring back to the homeland those citizens who have left it.
22. The Government will act to continue the development of the Arab and Druze sectors, in accordance with Cabinet decisions in these spheres, and to complete ordinance plans for the Arab and Druze settlements in order to facilitate future construction in accordance with the ordinance plans.
23. Special efforts will be made to integrate educated minority group members into the civil service and into various public institutions, in order to advance their participation in state and public responsibility.
24. The Government will look into the issue of the Moslem religious trusts.
25. The principle of national ownership of the land will be preserved. A ministerial committee will be established to deal with exceptional cases.
26. The Government will decide concerning the sale of business assets owned by the state.
27. The socio-economic policy will be based on a comprehensive program which will be brought to the knowledge of the Knesset and the public, and will be implemented in a coordinated and consistent manner to attain its goals.
28. The Government will act with all the public figures, including the Council for the Prevention of Road Accidents, in the fight against road accidents.
29. The Government will continue to act to guarantee full equality of rights to all the inhabitants, regardless of creed, race, nationality, sex or ethnic origin.
30. The Government will act to institute a reform of the Local Government.
31a. The Government will act to eliminate crime and violence and to instill recognition of the supremacy of the rule of law.
b. The Police's capability to fight crime in all its manifestations will be bolstered.
32. The possibility, of changing the governmental and electoral systems will be examined, with the aim of fortifying the country's democratic regime, of augmenting the government's ability to act, and of increasing the connection between voters and those elected.
33. The unity of the nation and the proper functioning of society require the fostering of mutual tolerance and freedom of conscience and religion. The government will prevent all religious or anti-religious coercion from any quarter; will guarantee public religious needs via the state; will maintain freedom of religion and conscience for all the non-Jewish communities, will supply their religious needs at public expense; and will ensure a religious education for all children whose parents desire it.
34. The status quo in matters of religion in the state will be preserved.
35. Education will be founded on the eternal values of the Jewish people.
36. The Government will carry out all the international commitments of the State of Israel.