Rabin Names Rival Peres as Foreign Minister : Politics: Israeli prime minister-designate is suspicious of Labor cohort but seeks party unity as he readies his Cabinet.

In a move that extended the dovish leanings of his new government, Prime Minister-to-be Yitzhak Rabin on Saturday named an old rival, Shimon Peres, to be foreign minister and prepared to present his center-left coalition Cabinet to Parliament for a vote of confidence.

At the same time, efforts by Rabin to lure a rightist party into his coalition continued to founder. Rafael Eitan, leader of the Tsomet Party, insisted he could not join Rabin’s government as long as it pledges to freeze spending on new settlements in the occupied West Bank and Gaza Strip. “This will lead to the destruction of Israel,” Eitan said, using the kind of rhetoric indicating that compromise is out of reach.

Ever since Rabin’s June 23 election victory, in which his Labor Party won a strong plurality of seats in the Knesset (Parliament), the fate of Peres, a former Labor leader whom Rabin ousted in party primaries, has been a subject of speculation. The two had battled politically for 20 years; Rabin blamed Peres for difficulties encountered during Rabin’s first term as prime minister, 1974 to 1977, and for Labor’s electoral woes thereafter.

Rabin has considered Peres a mischief-maker and had hoped to keep him in a marginal post, party officials said. But Peres’ continued popularity within party ranks made that difficult, and Rabin’s inability to form a broad coalition has placed a greater value on party unity.

Rabin is trying to keep Peres from taking a lead role in U.S.-brokered Middle East peace talks, which are expected to resume late this summer. Under an agreement worked out with Peres, Rabin will maintain close control over negotiations aimed at giving self-rule to the Palestinians, while Peres will handle regional talks with Israel’s Arab neighbors on such issues as arms control, economics and water rights. Peres has advocated moving faster toward Palestinian self-rule than Rabin and has proposed giving up the occupation of the Gaza Strip almost immediately.

During the past week, Rabin forged a coalition that joins Labor’s 44 seats in the new Parliament with 12 seats of the militantly dovish Meretz party and six seats of Shas, a party of ultra-Orthodox Sephardic Jews. The combination gives Rabin a controlling 62 seats in the 120-seat Knesset. That edge will be bolstered by support from two Arab-based parties that together have five seats. The Arab parties were not offered Cabinet portfolios but are being rewarded with money for community development. They also support Rabin’s plans to speed up peace talks.

Despite the cushion, Rabin aspired to entice Tsomet into his coalition and thus, in the process, give his government a centrist flavor. Extremist settlers are threatening violence if Rabin grants Palestinians autonomous rule over parts of the West Bank and Gaza Strip, and Eitan’s presence in government would have represented at least a shield against right-wing criticism.

But Eitan demanded either the defense or education portfolio. Rabin gave education to Meretz and will act as his own defense minister. Labor officials say they will still try to attract Eitan by offering him the Police Ministry.

Rabin is expected to present his Cabinet for a vote of confidence as early as Monday, after getting Labor’s agreement today on his proposed Cabinet.