Israeli Vote Favors the Right

JERUSALEM--Early results in yesterday's parliamentary elections showed the right-wing Likud bloc and left-leaning Labor Party locked in a tight race.

Likud leader and Prime Minister Yitzhak Shamir, buoyed by projections early today that his party was ahead, claimed he had the best chance of forming a new government.

But rival Labor leader and Foreign Minister Shimon Peres said he still had a chance of reaching an alliance with religious parties.

The election was widely seen as a watershed in determining the future of the occupied territories and shaping Israel's policy for dealing with its Arab neighbors.

Labor supported Arab calls for an international peace conference and said it was ready to sacrifice land captured in the 1967 Mideast war for peace agreements.

Likud rejected an international conference and vowed not to yield any of the West Bank and Gaza Strip, pledgingto build more Jewish settlements instead. Shamiralso said his party would take new and toughermeasures to put down the Palestinian uprising inthe occupied lands, now 11 months old.

A smiling Shamir told supporters at campaignheadquarters he believed Likud could from a rulingmajority in the 120-seat Knesset, or parliament,with small parties.

"Based on the facts we have before us, it seemsthat the situation commands and enables the Likudto form Israel's next government," Shamir said ina nationally televised speech.

He said he had meetings scheduled today withparties in the national camp, which is made up ofreligious and right-wing parties.

The 73-year-old Shamir made his statement onthe basis of television projections and beforesignificant official results were available.

A TV projection early this morning indicatedLikud leading Labor 40 seats to 39. News of theforecast brought cheers in Likud headquarters.

Israel radio projected Likud would win 39 seatsto Labor's 38, based on results from 904 of the4,800 polling stations, or about 20 percent.

Peres, 65, speaking at Labor headquartersminutes after Shamir's speech, said Labor wasstill in the race.

"The results...are not yet final," said Peres,who urged his followers: "Let's not lose faith,and let's consider the options for forming agovernment in the next 24 hours."

Peres indicated the left bloc held an edge with49 seats compared to 47 for Likud and itsright-wing allies. His count excluded fourreligious parties that were expected to get about18 seats and hold the balance of power.

Arab-oriented parties were expected to get theremaining seats but are traditionally excludedfrom coalitions.

Labor officials noted that Rabbi Yitzhak Peretzof the Shas, a religious party oriented toSephardic Jews of Middle East origin, left thedoor open to a possible alliance with Labor. Shaswas projected to get as many as seven seats.

Israelis voted in an atmosphere of violencecreated by the Palestinian rebellion coupled witha sudden outburst of attacks on Jewish civilians.

Politicians from both left and right said theattacks on civilians in recent days would helpLikud and hurt Labor.

About 80 percent of the 2.9 million eligiblevoters turned out, reflecting the galvanizingeffect of the rebellion, which has killed 10Israelis and more than 300 Palestinians since itbegan Dec. 8, 1987.

A huge force of 13,000 police and othersecurity personnel protected the 4,800 votingstations