reason" to celebrate, despite a stunning election victory that saw his Likud Party doubling its seats in Israel’s Parliament.

Addressing an enthusiastic flags waving crowd in Likud Party Headquarters, in Tel Aviv, Sharon warned his supporters they "don’t have room for celebrations" after the "historic victory" because "the battle against terrorist organizations still claims victims every day."

In addition there was the war against Iraqi "hanging over our head" and Israel’s shattered economy, which he suggested "had divided" Israelis. Sharon said that only if these issues are resolved "we will have a victory for all people" of Israel.

As he tried to calm down slogans shouting people, the prime minister stressed that he still wanted a government of national unity, adding that he wanted first to talk with "Zionist parties."

BIBLICAL REFERENCES

In a speech rich of rhetoric and Biblical references, Sharon referred to the assassinated Israeli Prime Minister Yitzhak Rabin from the Labour Party, who once said that all "Israelis are brothers" in times of crisis and that they all share the same faith.

Prime Minister Sharon said he had forgiven people who had tried "to dirty" his name by implicating him in vote buying and business scandals, ahead of Election Day. "The battles of the elections are now behind us," he said.

Sharon stressed that the Bible or the Torah show that "Israel was only allowed to receive the Torah when acting as one. We are one person…The eyes of the people are upon us. Everyone in the world wants to see if we can unite," he said on laud applause.

LABOUR DEFEATED

However the largest opposition party Labour, which suffered its biggest defeat ever, has rejected any cooperation with Sharon in a broad based new government, said its prime ministerial candidate Amram Mitzna.

Labour only received about 18 seats, and Likud 36, a television poll said. Former Labour prime minister Ehud Barak suggested in an interview that it was impossible to cooperate with Sharon as he refuses to make any concessions to Palestinians.

Barak said it was not realistic to expect a man "who dedicated his whole life to Jewish settlements, to take away dozens of settlements." Barak spoke shortly after a Palestinian Christian family expressed concern that Jewish settlers will take away land from Christian farmers in the Bethlehem area.

PALESTINIANS DISAPPOINTED

Officials from the Palestinian Authority projected more "suffering for the Palestinians" under the new Sharon government.

On Tuesday at least 7 Palestinians died during Israeli military raids in Palestinian territories, reports said. Israeli officials stressed the operation was part of a campaign against alleged militants, in an effort to prevent more suicide attacks against Israel.

Despite the tensions, Sharon urged Israeli communities around the world to come to Israel. The prime minister, who recently attended an event of pro-Israel Christians from around the world, pledged his government "would support Jewish immigration."

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