According to a report on Israel Radio Saturday morning significant progress was made in coalition talks between the Kadima and Labor parties during a secret meeting held Thursday night between the two party leaders.



According to the report it seems likely that Peretz will be appointed Defense Minister and possibly Deputy Prime Minister. The additional ministers to be awarded portfolios within the Labor party will reportedly be Education Minister Yuli Tamir, Minister of Agriculture Shalom Simhon, Minister of National Infrastructure Binyamin Ben Eliezer, Minister of Tourism Ophir Paz-Pines and

Ministers Without Portfolios Isaac Herzog and Eitan Cabel.



Olmert is slated to meet on Sunday with Uriel Reichman who had been promised the Education portfolio by Ariel Sharon, to discuss transferring the reigns of the Education Ministry to the Labor party. Reports late Saturday night speculated that Olmert will offer Reichman the Justice Ministry as a consolation prize; however, Reichman’s aides said he will turn it down.



Although Labor officials were concerned that they would only be awarded five or six government portfolios during earlier coalition negotiations, the reported agreement between Olmert and Peretz will grant the Labor party seven government portfolios. The Labor negotiators have been reviewing a draft of the basic guidelines that they received at the start of last week and negotiators for both parties met Saturday evening to work out their remaining issues in Tel Aviv in an attempt to finalize a coalition agreement.



The reported agreement will leave the Finance , Foreign Affairs, Justice, Interior, Transportation and Negev and Galilee Development ministries under Kadima party control. However no agreement has been reported regarding the Labor party demand to raise the national minimum wage.