WORLD : Shamir Bows to Likud Hard-Liners

TEL AVIV —  Prime Minister Yitzhak Shamir today turned back a challenge to his leadership by hard-liners in the Likud Party who opposed his election plan for peace negotiations.

But in reaching a compromise, Shamir accepted the positions of his rivals and may have burdened his Middle East peace initiative with conditions that make it unacceptable to Palestinians.

In a rousing speech before the party’s central committee, Shamir endorsed opponents’ demands that East Jerusalem Arabs be excluded from voting and that the violence of the Palestinian uprising be ended as a condition for peace negotiations. He also said Israel will not accept a Palestinian state or the participation of the Palestine Liberation Organization.

The compromise was a victory for Shamir, who had threatened to resign if the rebel faction voted against his plan.