In March 1990 the coalition government fell after Prime Minister Yitzhak Shamir and his Likud Party refused to make a compromise according to which Israel could accept a peace initiative proposed by Secretary of State James Baker. The Shamir-Rabin plan, which developed into the Israeli government initiative of May 14, 1989, was initially launched at a time when Israel had little choice but to react to regional and global changes. Based on the Camp David agreements, the plan called for elections in the West Bank and Gaza, where a delegation representing the Palestinians in negotiations with Israel would be chosen. Prime Minister Shamir's initial reaction to the content of Hosni Mubarak's plan was to reaffirm the Israeli government plan as the only initiative to which Israel was bound. By contrast, Shimon Peres thought that with some exceptions the Egyptian initiative could serve as a basis for negotiations on the election plan.