Left: Prime Minister-elect Binyamin Netanyahu pledged to continue peace talks during a victory rally Sunday in Jerusalem. A security guard is at right. `Yigal Amir Won' Bottom Left: Labor supporters were crushed after returns indicated a Netanyahu victory. Rabin's secular, dovish heirs see Netanyahu's victory as a reason for more mourning. Bottom Right: Netanyahu supporters cruise Jerusalem's streets claiming victory. LARRY DERFNER ISRAEL CORRESPONDENT Below: Defeat hung heavily on Prime Minister Peres, seen here at Hebrew University, site of his first public speech since losing the election. PHOTO BY DEB BIE HILL Tel Aviv ter Shimon Peres postponed that follow- ing the spring wave of Islamic bombings that killed about 60 Israelis. Then he put it off until after the May 29 elections. The ball has now passed to Mr. Netanyahu's coalition of the hawkish and the pious. Danny Hizmi, 45, runs the settlers' cafe beside the Tomb of the Patriarchs. "This will be our government," he insisted, "a Jewish government that should take care of the Jews — and the Palestinians — but first the Jews." In the narrow Arab shopping streets, s dawn approached on May 30 and it became increasingly clear that Binyamin Ne- tanyahu was going to be Is- rael's next prime minister, many Shimon Peres sup- porters greeted each other by asking, "So when are you leaving?" — as in leaving Is- rael. They weren't serious, but the question re- flected a feeling that their country, which they liked to think of as a Western-orient- ed, rational, peace-loving place, had been taken over by secular hawks, Orthodox hawks, and hawkish Haredi medievalists. The half of the country — actually 49.5 percent — who voted for Mr. Peres, espe- cially the hard-core devotees of the peace process, were beyond depression. "I'm in mourning," said one man. Added a woman: "I could never bring myself to think about the possibility of Netanyahu winning, be- cause it was too horrible to contemplate." Leah Rabin, widow of the assassinated prime minister, was not alone when she said, "I look at the closet with my suitcas- es and I feel like packing up and getting out of here." (She said later that she had been quoted out of context, and that she had no such intention.) There was a widespread feeling that, as the phrase went, "Yigal Amir won." The sense was that Yitzhak Rabin had been killed twice. After all the idealism of the post-assassination period, Mr. Rabin's po- litical enemies had triumphed; his heirs had lost. Mr. Netanyahu, who had led so many demonstrations where "Rabin is a traitor" was one of the milder chants, had emerged on top. A wholly different constellation of Israelis with their broken-down banana stalls and steaming chickpeas, congested traffic and veiled Muslim matrons, the talk is less of a return to the seven-year intifada of fly- ing stones and burning tires than of guns and TNT. "This time," warned Basil Nassar, a 20-year-old driver who served six months in an Israeli security prison, "there'll be armed attacks, there will be suicide at- tacks. And if they by to settle more Jews in Hebron, there'll be a war here." For Azam Muhtased, 41, an office worker, last week's elections proved that Israelis did not want peace. "The ex- tremists on both sides have won. Ne- tanyahu's victory is a blow to all the peace forces in the Middle East. Iran will now step up its support for Hamas be- cause llamas' way has proved it gets re- , sults." But there is no heat, yet, in the Pales- tinians' resentment. Like the Jews, they are waiting to see which way Mr. Ne- tanyahu jumps. Haj Nimer Jiyawi, a 50- year-old jeweler with a double chin, had come to power. Shas, the Sephardi Or- thodox party, had garnered many thousands of votes by passing out amulets carrying the blessing of a 106-year-old rabbi and kab- balist. Chabad Chasidim had attracted many yeahs for Mr. Netanyahu by display- ing banners and handing out bumper stick- ers that read, "Netanyahu — Good for the Jews." In a Tel Aviv dentist's office, the recep- tionist said, "I want separation — separa- tion between me and those other crazy Jews. I want to put up a wall between the Greater Tel Aviv area and keep Jerusalem on the other side." A Jerusalem man who is planning to leave the city said, "Listen, the ultra-Or- thodox want to keep a few of us secular. They need us to pay their taxes and defend them in the army." There was a lot of black humor in the air. SECULAR FEARS "Alienation" was the watchword among the political losers. The country had been theirs for four years. Finally the occupation was ending and peace was being made, even if in bloody fits and starts. The Supreme Court, Meretz and the Reform and Conser- vative movements were chipping away at Orthodox religious hegemony. The country was becoming more progressive, more nor- mal, more hopeful. Then came the upheaval. The country had been taken over by forces who had made it pointedly clear that the left was the cause of all the country's ills. Mr. Netanyahu, with his implacable ha- tred of Yassir Arafat and the Oslo Accords, was now in charge of making peace. The re- ligious nationalists and the Haredim, who had accused the government of destroying brown business suit and white keffiyeh head scarf, sells gold trinkets under a proud photograph of himself shaking hands with a beaming Mr. Arafat. "The peace agreement," he argued, "was be- tween two nations, not two individuals ... so Netanyahu has no choice but to car- ry it out." Maybe, but Mayor Natshe isn't as op- timistic. "If Netanyahu doesn't go on with the peace process, he will pay the price at the next elections," he said. "A lot of blood could be shed before then."