JERUSALEM, JUNE 9 -- Prime Minister Yitzhak Shamir denied today that the new coalition government he has formed will shift Israel toward narrow right-wing policies, but several hard-line leaders in the incoming administration predicted it would expand Jewish settlement in the occupied territories while cracking down on the ongoing Arab uprising.

In an interview broadcast on Israel radio, Shamir said the new coalition of nationalist and religious parties, formed after a three-month political crisis, "represents the majority of the people" and would continue the diplomatic initiatives of the previous "unity" government, which matched Shamir's Likud with the left-wing Labor Party. The new coalition, which commands a two-vote majority in the Knesset, or parliament, is due to seek a vote of confidence on Monday.

"We are not interested in any wars, in any confrontations with any neighbors," Shamir said. "We want peace with all our neighbors and the only way to achieve this peace is to sit down around a table of negotiations. I think the Arab world will have to decide . . . to sit down and negotiate with Israel about the conditions of peace."

The statement reflected the new government's apparent intention to emphasize a call for bilateral negotiations between Israel and Arab states, while playing down the Israeli-Palestinian talks that the United States and Egypt have tried to arrange. Asked what Israel's position on the proposed Israeli-Palestinian negotiations would now be, Shamir avoided a direct response, saying "it's too early to talk now about the first operational steps" of the government.

The prime minister's moderate tone contrasted with tough declarations issued by hard-line leaders in the Likud and the small nationalist parties now allied with it. Ariel Sharon, the leader of opposition within the Likud to the peace process during the last government and now the incoming housing minister, told Israel radio that "one of the main goals" of the new administration would be "to restore law and order" in the occupied West Bank and Gaza Strip. The Arab uprising, or intifada, there has led to nearly 1,000 deaths in the last 30 months.

Sharon, who in the past has advocated the mass expulsion of Palestinian leaders from the territories, added: "I think we now have a homogenous government which can take a decision, and will do so. I never preached for harsher steps, I preached for different steps, and that's what should be done."

Sharon's remarks reflected widespread expectation that the new government will end six years of stagnation under the unity governments and three months of governmental paralysis that followed the Labor-Likud coalition's March 15 collapse.

Both Sharon and Gyula Cohen, a leader of the right-wing Tehiya party, predicted that the government would step up Jewish settlement in the occupied territories despite the opposition of the Bush administration and a warning by Soviet President Mikhail Gorbachev that it could lead to the suspension of Soviet Jewish emigration to Israel.

"Israel has been building {settlements} all over the country, and that's what we're going to do," said Sharon. "We are not going to interfere where the Jews will be living. . . . Everyone can live where he chooses."

The prominence of Sharon and other rightists in the government has prompted critics to say Shamir has lost control of the Likud to the far right. "What is happening really," said Labor Party General Secretary Micha Harish, "is that the Likud is dominated by the forceful political threat and blackmail of Mr. Sharon. Mr. Shamir in the last year has been all the time giving in to initiatives by Mr. Sharon toward the extreme right and against the peace process."

A prominent American Jewish representative in Israel, Harry Wall of the Anti-Defamation League of B'nai B'rith, said the new government "will have to exert itself more than the previous one on the peace process, if for no other reason than to prove that it's not intransigent."

The new foreign minister is expected to be David Levy, 52, a Moroccan-born construction-worker-turned-politician who joined Sharon in opposing Israeli-Palestinian talks. Levy, whose political base lies among Israel's Sephardic Jews, has been questioned by reporters about his ability to serve in his new post because he does not speak English.

"The language will not be an obstacle. I'll surprise everyone," Levy answered on Israel radio today. "Anyway, there are some English-speaking people who don't understand what you tell them."