ITALIAN COALITION MEETS AS GOVERNMENT CRISIS LOOMS
Leaders of Italy's five coalition parties
have agreed to meet today to try to settle their differences
which are mainly between Prime Minister Bettino Craxi's
Socialist Party and the majority Christian Democrats.
    Sources close to Deputy Prime Minister Arnaldo Forlani said
Craxi told him he would announce his resignation next week,
allowing negotiations on a new government leader.
    The conservative Christian Democrats demanded the meeting
after Craxi said a pact agreed during a government crisis last
August, under which he was to hand over the prime minister's
job next month, was unlikely to be fulfilled.
    Political sources said the Christian Democrats are likely
to leave the coalition, which also includes Republicans, Social
Democrats and Liberals, unless they get the prime minister's
job. They said Craxi's plans to resign show he has decided to
stick to the pact but talks on a leader, a government program
and sharing of ministries will not be easy.
    They said there is dissent among the partners and that
Forlani has been trying to mediate to avoid a crisis. They said
the five are likely to begin talks tomorrow on whether
formation of a new government is feasible or early elections
are inevitable. Elections are not due until 1988.
 REUTER
