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Accord relatif à la bande de Gaza et à la région de Jéricho: Autorité Palestinienne, présence internationale, Protocole de Paris

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UNITED
NATIONS
A S

      General Assembly
      Security Council
A/49/180
S/1994/727

20 June 1994

GENERAL ASSEMBLY
Forty-ninth session
Item 38 of the preliminary list*
THE SITUATION IN THE MIDDLE EAST
SECURITY COUNCIL
Forty-ninth year




Letter dated 27 May 1994 from the Permanent Representatives
of the Russian Federation and the United States of America
to the United Nations addressed to the Secretary-General


As co-sponsors of the peace process launched at Madrid in October 1991 and witnesses to the signing at Cairo on 4 May 1994 of the Agreement on the Gaza Strip and the Jericho Area, including its annexes and maps, and an exchange of letters by the Government of the State of Israel and the Palestine Liberation Organization, the representative of the Palestinian people, we have the honour to enclose the above document (see annex).

We would be grateful if you would have the present letter, the attached Agreement, including its annexes and maps, and the exchange of letters distributed as an official document of the General Assembly, under item 38 of the preliminary list, and of the Security Council.


(Signed) Yuliy M. VORONTSOV
Ambassador
Permanent Representative
to the United Nations of the
Russian Federation
(Signed) Madeleine K. ALBRIGHT
Ambassador
Permanent Representative
to the United Nations of the
United States of Americ




* A/49/50/Rev.1.


Letter dated 27 May 1994 from the Permanent Representative
of Israel to the United Nations addressed to the Secretary-General


Following my letter to you of 8 October 1993, concerning the Declaration of Principles on Interim Self-Government Arrangements, signed on 13 September 1993 at Washington, D.C. (see A/48/486-S/26560), I have the honour to enclose the Agreement on the Gaza Strip and the Jericho Area, including its annexes and maps, signed on 4 May 1994 at Cairo, as well as the exchange of letters signed on the same day by the Government of the State of Israel and the Palestine Liberation Organization, the representative of the Palestinian people, and witnessed by the United States of America, the Russian Federation and the Arab Republic of Egypt (see annex).

I would be grateful if you would have the present letter, the attached Agreement, including its annexes and maps, and the exchange of letters distributed as an official document of the General Assembly, under item 38 of the preliminary list, and of the Security Council.

(Signed) Gad YAACOBI
Ambassador
Permanent Representative of Israel
to the United Nations


Letter dated 27 May 1994 from the Permanent Observer
of Palestine to the United Nations addressed to the Secretary-General


Following my letter to you of 8 October 1993, concerning the Declaration of Principles on Interim Self-Government Arrangements, signed on 13 September 1993 at Washington, D.C. (see A/48/486-S/26560), I have the honour to enclose the Agreement on the Gaza Strip and the Jericho Area, including its annexes and maps, signed on 4 May 1994 at Cairo, as well as the exchange of letters signed on the same day by the Government of the State of Israel and the Palestine Liberation Organization, the representative of the Palestinian people, and witnessed by the United States of America, the Russian Federation and the Arab Republic of Egypt (see annex).

I would be grateful if you would have the present letter, the attached Agreement, including its annexes and maps, and the exchange of letters distributed as an official document of the General Assembly, under item 38 of the preliminary list, and of the Security Council.

(Signed) Dr. Nasser AL-KIDWA
Permanent Observer of Palestine
to the United Nations




ANNEX*


AGREEMENT ON THE GAZA STRIP AND THE JERICHO AREA







Cairo, 4 May 1994












* The present annex is being published as received, without formal editing.






AGREEMENT ON THE GAZA STRIP AND THE JERICHO AREA




The Government of the State of Israel and the Palestine Liberation
Organization (hereinafter "the PLO"), the representative of the
Palestinian people;







PREAMBLE


WITHIN the framework of the Middle East peace process initiated
at Madrid in October 1991;


REAFFIRMING their determination to live in peaceful coexistence,
mutual dignity and security, while recognizing their
mutual legitimate and political rights;


REAFFIRMING their desire to achieve a just, lasting and comprehensive
peace settlement through the agreed political process;


REAFFIRMING their adherence to the mutual recognition and commitments
expressed in the letters dated September 9, 1993, signed
by and exchanged between the Prime Minister of Israel and
the Chairman of the PLO;


REAFFIRMING their understanding that the interim self-government
arrangements, including the arrangements to apply in the
Gaza Strip and the Jericho Area contained in this
Agreement, are an integral part of the whole peace process
and that the negotiations on the permanent status will
lead to the implementation of Security Council Resolutions
242 and 338;


DESIROUS of putting into effect the Declaration of Principles on
Interim Self-Government Arrangements signed at Washington,
D.C. on September 13, 1993, and the Agreed Minutes thereto
(hereinafter "the Declaration of Principles"), and in
particular the Protocol on withdrawal of Israeli forces
from the Gaza Strip and the Jericho Area;


HEREBY AGREE to the following arrangements regarding the Gaza Strip and
the Jericho Area:




Article I

Definitions


For the purpose of this Agreement:

a. the Gaza Strip and the Jericho Area are delineated on map Nos. 1
and 2 attached to this Agreement;


b. "the Settlements" means the Gush Katif and Erez settlement
areas, as well as the other settlements in the Gaza Strip, as
shown on attached map No. 1;


c. "the Military Installation Area" means the Israeli military
installation area along the Egyptian border in the Gaza Strip,
as shown on map No. 1; and


d. the term "Israelis" shall also include Israeli statutory
agencies and corporations registered in Israel.



Article II

Scheduled Withdrawal of Israeli Military Forces


1. Israel shall implement an accelerated and scheduled withdrawal of
Israeli military forces from the Gaza Strip and from the Jericho
Area to begin immediately with the signing of this Agreement. Israel
shall complete such withdrawal within three weeks from this date.


2. Subject to the arrangements included in the Protocol Concerning
Withdrawal of Israeli Military Forces and Security Arrangements
attached as Annex I, the Israeli withdrawal shall include evacuating
all military bases and other fixed installations to be handed over
to the Palestinian Police, to be established pursuant to Article IX
below (hereinafter "the Palestinian Police").


3. In order to carry out Israel's responsibility for external security
and for internal security and public order of Settlements and
Israelis, Israel shall, concurrently with the withdrawal, redeploy
its remaining military forces to the Settlements and the Military
Installation Area, in accordance with the provisions of this
Agreement. Subject to the provisions of this Agreement, this
redeployment shall constitute full implementation of Article XIII of
the Declaration of Principles with regard to the Gaza Strip and the
Jericho Area only.


4. For the purposes of this Agreement, "Israeli military forces" may
include Israel police and other Israeli security forces.


5. Israelis, including Israeli military forces, may continue to use
roads freely within the Gaza Strip and the Jericho Area.
Palestinians may use public roads crossing the Settlements freely,
as provided for in Annex I.


6. The Palestinian Police shall be deployed and shall assume
responsibility for public order and internal security of
Palestinians in accordance with this Agreement and Annex I.





Article III

Transfer of Authority


1. Israel shall transfer authority as specified in this Agreement from
the Israeli military government and its Civil Administration to the
Palestinian Authority, hereby established, in accordance with
Article V of this Agreement, except for the authority that Israel
shall continue to exercise as specified in this Agreement.


2. As regards the transfer and assumption of authority in civil
spheres, powers and responsibilities shall be transferred and
assumed as set out in the Protocol Concerning Civil Affairs attached
as Annex II.


3. Arrangements for a smooth and peaceful transfer of the agreed powers
and responsibilities are set out in Annex II.


4. Upon the completion of the Israeli withdrawal and the transfer of
powers and responsibilities as detailed in paragraphs 1 and 2 above
and in Annex II, the Civil Administration in the Gaza Strip and the
Jericho Area will be dissolved and the Israeli military government
will be withdrawn. The withdrawal of the military government shall
not prevent it from continuing to exercise the powers and
responsibilities specified in this Agreement.


5. A Joint Civil Affairs Coordination and Cooperation Committee
(hereinafter "the CAC") and two Joint Regional Civil Affairs
Subcommittees for the Gaza Strip and the Jericho Area respectively
shall be established in order to provide for coordination and
cooperation in civil affairs between the Palestinian Authority and
Israel, as detailed in Annex II.


6. The offices of the Palestinian Authority shall be located in the
Gaza Strip and the Jericho Area pending the inauguration of the
Council to be elected pursuant to the Declaration of Principles.




Article IV

Structure and Composition of the Palestinian Authority


1. The Palestinian Authority will consist of one body of 24 members
which shall carry out and be responsible for all the legislative and
executive powers and responsibilities transferred to it under this
Agreement, in accordance with this Article, and shall be responsible
for the exercise of judicial functions in accordance with Article
VI, subparagraph 1.b. of this Agreement.


2. The Palestinian Authority shall administer the departments
transferred to it and may establish, within its jurisdiction, other
departments and subordinate administrative units as necessary for
the fulfillment of its responsibilities. It shall determine its own
internal procedures.


3. The PLO shall inform the Government of Israel of the names of the
members of the Palestinian Authority and any change of members.
Changes in the membership of the Palestinian Authority will take
effect upon an exchange of letters between the PLO and the
Government of Israel.


4. Each member of the Palestinian Authority shall enter into office
upon undertaking to act in accordance with this Agreement.




Article V

Jurisdiction


1. The authority of the Palestinian Authority encompasses all matters
that fall within its territorial, functional and personal
jurisdiction, as follows:


a. The territorial jurisdiction covers the Gaza Strip and the
Jericho Area territory, as defined in Article I, except for
Settlements and the Military Installation Area.


Territorial jurisdiction shall include land, subsoil and
territorial waters, in accordance with the provisions of this
Agreement.


b. The functional jurisdiction encompasses all powers and
responsibilities as specified in this Agreement. This
jurisdiction does not include foreign relations, internal
security and public order of Settlements and the Military
Installation Area and Israelis, and external security.


c. The personal jurisdiction extends to all persons within the
territorial jurisdiction referred to above, except for Israelis,
unless otherwise provided in this Agreement.


2. The Palestinian Authority has, within its authority, legislative,
executive and judicial powers and responsibilities, as provided for
in this Agreement.


3. a. Israel has authority over the Settlements, the Military
Installation Area, Israelis, external security, internal
security and public order of Settlements, the Military
Installation Area and Israelis, and those agreed powers and
responsibilities specified in this Agreement.


b. Israel shall exercise its authority through its military
government, which, for that end, shall continue to have the
necessary legislative, judicial and executive powers and
responsibilities, in accordance with international law. This
provision shall not derogate from Israel's applicable
legislation over Israelis in personam. 4. The exercise of
authority with regard to the electromagnetic sphere and airspace
shall be in accordance with the provisions of this Agreement.


5. The provisions of this Article are subject to the specific legal
arrangements detailed in the Protocol Concerning Legal Matters
attached as Annex III. Israel and the Palestinian Authority may
negotiate further legal arrangements.


6. Israel and the Palestinian Authority shall cooperate on matters of
legal assistance in criminal and civil matters through the legal
subcommittee of the CAC.




Article VI

Powers and Responsibilities of the Palestinian Authority


1. Subject to the provisions of this Agreement, the Palestinian
Authority, within its jurisdiction:


a. has legislative powers as set out in Article VII of this
Agreement, as well as executive powers;


b. will administer justice through an independent judiciary;

c. will have, inter alia, power to formulate policies, supervise
their implementation, employ staff, establish departments,
authorities and institutions, sue and be sued and conclude
contracts; and


d. will have, inter alia, the power to keep and administer
registers and records of the population, and issue certificates,
licenses and documents.


2. a. In accordance with the Declaration of Principles, the
Palestinian Authority will not have powers and responsibilities
in the sphere of foreign relations, which sphere includes the
establishment abroad of embassies, consulates or other types of
foreign missions and posts or permitting their establishment in
the Gaza Strip or the Jericho Area, the appointment of or
admission of diplomatic and consular staff, and the exercise of
diplomatic functions.


b. Notwithstanding the provisions of this paragraph, the PLO may
conduct negotiations and sign agreements with states or
international organizations for the benefit of the Palestinian
Authority in the following cases only:


(1) economic agreements, as specifically provided in Annex IV of
this Agreement;


(2) agreements with donor countries for the purpose of
implementing arrangements for the provision of assistance to
the Palestinian Authority;


(3) agreements for the purpose of implementing the regional
development plans detailed in Annex IV of the Declaration of
Principles or in agreements entered into in the framework of
the multilateral negotiations; and


(4) cultural, scientific and educational agreements.

c. Dealings between the Palestinian Authority and representatives
of foreign states and international organizations, as well as
the establishment in the Gaza Strip and the Jericho Area of
representative offices other than those described in
subparagraph 2.a. above, for the purpose of implementing the
agreements referred to in subparagraph 2.b. above, shall not be
considered foreign relations.




Article VII

Legislative Powers of the Palestinian Authority


1. The Palestinian Authority will have the power, within its
jurisdiction, to promulgate legislation, including basic laws, laws,
regulations and other legislative acts.


2. Legislation promulgated by the Palestinian Authority shall be
consistent with the provisions of this Agreement.


3. Legislation promulgated by the Palestinian Authority shall be
communicated to a legislation subcommittee to be established by the
CAC (hereinafter "the Legislation Subcommittee"). During a period of
30 days from the communication of the legislation, Israel may
request that the Legislation Subcommittee decide whether such
legislation exceeds the jurisdiction of the Palestinian Authority or
is otherwise inconsistent with the provisions of this Agreement.


4. Upon receipt of the Israeli request, the Legislation Subcommittee
shall decide, as an initial matter, on the entry into force of the
legislation pending its decision on the merits of the matter.


5. If the Legislation Subcommittee is unable to reach a decision with
regard to the entry into force of the legislation within 15 days,
this issue will be referred to a board of review. This board of
review shall be comprised of two judges, retired judges or senior
jurists (hereinafter "Judges"), one from each side, to be appointed
from a compiled list of three Judges proposed by each.


In order to expedite the proceedings before this board of review,
the two most senior Judges, one from each side, shall develop
written informal rules of procedure.


6. Legislation referred to the board of review shall enter into force
only if the board of review decides that it does not deal with a
security issue which falls under Israel's responsibility, that it
does not seriously threaten other significant Israeli interests
protected by this Agreement and that the entry into force of the
legislation could not cause irreparable damage or harm.


7. The Legislation Subcommittee shall attempt to reach a decision on
the merits of the matter within 30 days from the date of the Israeli
request. If this Subcommittee is unable to reach such a decision
within this period of 30 days, the matter shall be referred to the
Joint Israeli-Palestinian Liaison Committee referred to in Article
XV below (hereinafter "the Liaison Committee"). This Liaison
Committee will deal with the matter immediately and will attempt to
settle it within 30 days.


8. Where the legislation has not entered into force pursuant to
paragraphs 5 or 7 above, this situation shall be maintained pending
the decision of the Liaison Committee on the merits of the matter,
unless it has decided otherwise.


9. Laws and military orders in effect in the Gaza Strip or the Jericho
Area prior to the signing of this Agreement shall remain in force,
unless amended or abrogated in accordance with this Agreement.




Article VIII

Arrangements for Security and Public Order


1. In order to guarantee public order and internal security for the
Palestinians of the Gaza Strip and the Jericho Area, the Palestinian
Authority shall establish a strong police force, as set out in
Article IX below. Israel shall continue to carry the responsibility
for defense against external threats, including the responsibility
for protecting the Egyptian border and the Jordanian line, and for
defense against external threats from the sea and from the air, as
well as the responsibility for overall security of Israelis and
Settlements, for the purpose of safeguarding their internal security
and public order, and will have all the powers to take the steps
necessary to meet this responsibility.


2. Agreed security arrangements and coordination mechanisms are
specified in Annex I.


3. A joint Coordination and Cooperation Committee for mutual security
purposes (hereinafter "the JSC"), as well as three joint District
Coordination and Cooperation Offices for the Gaza district, the Khan
Yunis district and the Jericho district respectively (hereinafter
"the DCOs") are hereby established as provided for in Annex I.


4. The security arrangements provided for in this Agreement and in
Annex I may be reviewed at the request of either Party and may be
amended by mutual agreement of the Parties. Specific review
arrangements are included in Annex I.




Article IX

The Palestinian Directorate of Police Force


1. The Palestinian Authority shall establish a strong police force, the
Palestinian Directorate of Police Force (hereinafter "the
Palestinian Police"). The duties, functions, structure, deployment
and composition of the Palestinian Police, together with provisions
regarding its equipment and operation, are set out in Annex I,
Article III. Rules of conduct governing the activities of the
Palestinian Police are set out in Annex I, Article VIII.


2. Except for the Palestinian Police referred to in this Article and
the Israeli military forces, no other armed forces shall be
established or operate in the Gaza Strip or the Jericho Area.


3. Except for the arms, ammunition and equipment of the Palestinian
Police described in Annex I, Article III, and those of the Israeli
military forces, no organization or individual in the Gaza Strip and
the Jericho Area shall manufacture, sell, acquire, possess, import
or otherwise introduce into the Gaza Strip or the Jericho Area any
firearms, ammunition, weapons, explosives, gunpowder or any related
equipment, unless otherwise provided for in Annex I.




Article X

Passages


Arrangements for coordination between Israel and the Palestinian
Authority regarding the Gaza-Egypt and Jericho-Jordan passages, as well
as any other agreed international crossings, are set out in Annex I,
Article X.




Article XI

Safe Passage between the Gaza Strip and the Jericho Area


Arrangements for safe passage of persons and transportation between the
Gaza Strip and the Jericho Area are set out in Annex I, Article IX.






Article XII

Relations Between Israel and the Palestinian Authority


1. Israel and the Palestinian Authority shall seek to foster mutual
understanding and tolerance and shall accordingly abstain from
incitement, including hostile propaganda, against each other and,
without derogating from the principle of freedom of expression,
shall take legal measures to prevent such incitement by any
organizations, groups or individuals within their jurisdiction.


2. Without derogating from the other provisions of this Agreement,
Israel and the Palestinian Authority shall cooperate in combatting
criminal activity which may affect both sides, including offenses
related to trafficking in illegal drugs and psychotropic substances,
smuggling, and offenses against property, including offenses related
to vehicles.




Article XIII

Economic Relations


The economic relations between the two sides are set out in the Protocol
on Economic Relations signed in Paris on April 29, 1994 and the
Appendices thereto, certified copies of which are attached as Annex IV,
and will be governed by the relevant provisions of this Agreement and
its Annexes.




Article XIV

Human Rights and the Rule of Law


Israel and the Palestinian Authority shall exercise their powers and
responsibilities pursuant to this Agreement with due regard to
internationally-accepted norms and principles of human rights and the
rule of law.




Article XV

The Joint Israeli-Palestinian Liaison Committee


1. The Liaison Committee established pursuant to Article X of the
Declaration of Principles shall ensure the smooth implementation of
this Agreement. It shall deal with issues requiring coordination,
other issues of common interest and disputes.


2. The Liaison Committee shall be composed of an equal number of
members from each Party. It may add other technicians and experts as
necessary.


3. The Liaison Committee shall adopt its rules of procedure, including
the frequency and place or places of its meetings.


4. The Liaison Committee shall reach its decisions by Agreement.



Article XVI

Liaison and Cooperation with Jordan and Egypt


1. Pursuant to Article XII of the Declaration of Principles, the two
Parties shall invite the Governments of Jordan and Egypt to
participate in establishing further liaison and cooperation
arrangements between the Government of Israel and the Palestinian
representatives on the one hand, and the Governments of Jordan and
Egypt on the other hand, to promote cooperation between them. These
arrangements shall include the constitution of a Continuing
Committee.


2. The Continuing Committee shall decide by agreement on the modalities
of admission of persons displaced from the West Bank and the Gaza
Strip in 1967, together with necessary measures to prevent
disruption and disorder.


3. The Continuing Committee shall deal with other matters of common
concern.




Article XVII

Settlement of Differences and Disputes


Any difference relating to the application of this Agreement shall be
referred to the appropriate coordination and cooperation mechanism
established under this Agreement. The provisions of Article XV of the
Declaration of Principles shall apply to any such difference which is
not settled through the appropriate coordination and cooperation
mechanism, namely:


1. Disputes arising out of the application or interpretation of this
Agreement or any subsequent agreements pertaining to the interim
period shall be settled by negotiations through the Liaison
Committee.


2. Disputes which cannot be settled by negotiations may be settled by a
mechanism of conciliation to be agreed between the Parties.


3. The Parties may agree to submit to arbitration disputes relating to
the interim period, which cannot be settled through conciliation. To
this end, upon the agreement of both Parties, the Parties will
establish an Arbitration Committee.




Article XVIII

Prevention of Hostile Acts


Both sides shall take all measures necessary in order to prevent acts of
terrorism, crime and hostilities directed against each other, against
individuals falling under the other's authority and against their
property, and shall take legal measures against offenders. In addition,
the Palestinian side shall take all measures necessary to prevent such
hostile acts directed against the Settlements, the infrastructure
serving them and the Military Installation Area, and the Israeli side
shall take all measures necessary to prevent such hostile acts emanating
from the Settlements and directed against Palestinians.




Article XIX

Missing Persons


The Palestinian Authority shall cooperate with Israel by providing all
necessary assistance in the conduct of searches by Israel within the
Gaza Strip and the Jericho Area for missing Israelis, as well as by
providing information about missing Israelis. Israel shall cooperate
with the Palestinian Authority in searching for, and providing necessary
information about, missing Palestinians.




Article XX

Confidence Building Measures


With a view to creating a positive and supportive public atmosphere to
accompany the implementation of this Agreement, and to establish a solid
basis of mutual trust and good faith, both Parties agree to carry out
confidence building measures as detailed herewith:


1. Upon the signing of this Agreement, Israel will release, or turn
over, to the Palestinian Authority within a period of 5 weeks, about
5,000 Palestinian detainees and prisoners, residents of the West
Bank and the Gaza Strip. Those released will be free to return to
their homes anywhere in the West Bank or the Gaza Strip. Prisoners
turned over to the Palestinian Authority shall be obliged to remain
in the Gaza Strip or the Jericho Area for the remainder of their
sentence.


2. After the signing of this Agreement, the two Parties shall continue
to negotiate the release of additional Palestinian prisoners and
detainees, building on agreed principles.


3. The implementation of the above measures will be subject to the
fulfillment of the procedures determined by Israeli law for the
release and transfer of detainees and prisoners.


4. With the assumption of Palestinian authority, the Palestinian side
commits itself to solving the problem of those Palestinians who were
in contact with the Israeli authorities. Until an agreed solution is
found, the Palestinian side undertakes not to prosecute these
Palestinians or to harm them in any way.


5. Palestinians from abroad whose entry into the Gaza Strip and the
Jericho Area is approved pursuant to this Agreement, and to whom the
provisions of this Article are applicable, will not be prosecuted
for offenses committed prior to September 13, 1993.




Article XXI

Temporary International Presence


1. The Parties agree to a temporary international or foreign presence
in the Gaza Strip and the Jericho Area (hereinafter "the TIP"), in
accordance with the provisions of this Article.


2. The TIP shall consist of 400 qualified personnel, including
observers, instructors and other experts, from 5 or 6 of the donor
countries.


3. The two Parties shall request the donor countries to establish a
special fund to provide finance for the TIP.


4. The TIP will function for a period of 6 months. The TIP may extend
this period, or change the scope of its operation, with the
agreement of the two Parties.


5. The TIP shall be stationed and operate within the following cities
and villages: Gaza, Khan Yunis, Rafah, Deir El Ballah, Jabaliya,
Absan, Beit Hanun and Jericho.


6. Israel and the Palestinian Authority shall agree on a special
Protocol to implement this Article, with the goal of concluding
negotiations with the donor countries contributing personnel within
two months.



Article XXII

Rights, Liabilities and Obligations


1. a. The transfer of all powers and responsibilities to the
Palestinian Authority, as detailed in Annex II, includes all
related rights, liabilities and obligations arising with regard
to acts or omissions which occurred prior to the transfer.
Israel will cease to bear any financial responsibility regarding
such acts or omissions and the Palestinian Authority will bear
all financial responsibility for these and for its own
functioning.


b. Any financial claim made in this regard against Israel will be
referred to the Palestinian Authority.


c. Israel shall provide the Palestinian Authority with the
information it has regarding pending and anticipated claims
brought before any court or tribunal against Israel in this
regard.


d. Where legal proceedings are brought in respect of such a claim,
Israel will notify the Palestinian Authority and enable it to
participate in defending the claim and raise any arguments on
its behalf.


e. In the event that an award is made against Israel by any court
or tribunal in respect of such a claim, the Palestinian
Authority shall reimburse Israel the full amount of the award.


f. Without prejudice to the above, where a court or tribunal
hearing such a claim finds that liability rests solely with an
employee or agent who acted beyond the scope of the powers
assigned to him or her, unlawfully or with willful malfeasance,
the Palestinian Authority shall not bear financial
responsibility.


2. The transfer of authority in itself shall not affect rights,
liabilities and obligations of any person or legal entity, in
existence at the date of signing of this Agreement.



Article XXIII

Final Clauses


1. This Agreement shall enter into force on the date of its signing.


2. The arrangements established by this Agreement shall remain in force
until and to the extent superseded by the Interim Agreement referred
to in the Declaration of Principles or any other agreement between
the Parties.


3. The five-year interim period referred to in the Declaration of
Principles commences on the date of the signing of this Agreement.


4. The Parties agree that, as long as this Agreement is in force, the
security fence erected by Israel around the Gaza Strip shall remain
in place and that the line demarcated by the fence, as shown on
attached map No. 1, shall be authoritative only for the purpose of
this Agreement.


5. Nothing in this Agreement shall prejudice or preempt the outcome of
the negotiations on the interim agreement or on the permanent status
to be conducted pursuant to the Declaration of Principles. Neither

Party shall be deemed, by virtue of having entered into this
Agreement, to have renounced or waived any of its existing rights,

claims or positions.

6. The two Parties view the West Bank and the Gaza Strip as a single
territorial unit, the integrity of which will be preserved during
the interim period.

7. The Gaza Strip and the Jericho Area shall continue to be an integral
part of the West Bank and the Gaza Strip, and their status shall not
be changed for the period of this Agreement. Nothing in this
Agreement shall be considered to change this status.


8. The Preamble to this Agreement, and all Annexes, Appendices and maps
attached hereto, shall constitute an integral part hereof.




Done in Cairo this fourth day of May, 1994.




__________________________
For the Government of the
State of Israel
________________
For the PLO
Witnessed By:

___________________________
The United States of America
____________________________
The Russian Federation
__________________________
The Arab Republic of Egypt




ANNEX I

Protocol Concerning Withdrawal of
Israeli Military Forces and Security Arrangements


Article I

Arrangements for Withdrawal of Israeli Military Forces


1. Subject to the provisions of this Annex, withdrawal of Israeli
military forces from the Gaza Strip and from the Jericho Area shall
begin on the date of the signing of this Agreement and shall be
completed within three weeks (21 days) from that date.


2. a. The Joint Security Coordination and Cooperation Committee set up
under Article II hereunder shall develop a plan to ensure full
coordination between the Israeli military forces and the
Palestinian Police during the withdrawal phases and the entry
and deployment of the Palestinian Police.


b. This coordination will be implemented through the District
Coordination Offices set up under Article II hereunder, that
shall start functioning on the date of the signing of this
Agreement.


c. The plan will include arrangements for the entry of the
Palestinian Police, the introduction of police arms, ammunition
and equipment and related matters, as well as arrangements
intended to facilitate a smooth transfer of responsibility,
including the transfer of civil authority, so that no vacuum in
authority exists.





Article II

Coordination and Cooperation In Security Matters


1. Joint Security Coordination and Cooperation Committee

a. A joint Security Coordination and Cooperation Committee for
Mutual Security Purposes (hereinafter "the JSC") is hereby
established.


b. The JSC shall:

(1) recommend security policy guidelines for the approval of the
Joint Israeli- Palestinian Liaison Committee and implement
such approved guidelines;


(2) deal with security issues raised by either side;

(3) provide the proper channel for exchanging information
between the two sides, needed to solve security problems;
and


(4) provide directives for the District Coordination Offices.

c. The JSC shall comprise between five and seven members from each
side. Decisions of the JSC will be reached by agreement between
the two sides.


d. The JSC shall determine its rules of procedure. Meetings of the
JSC shall be held every two weeks. In the event that either side
requests a special meeting, it shall be convened within
forty-eight (48) hours.


e. Unless otherwise agreed by the two sides, JSC meetings will be
hosted by each of the sides alternately.


2. District Coordination Offices

a. Three (3) District Coordination Offices are hereby established,
one each for the districts of Gaza, Khan Yunis and Jericho
(hereinafter "the DCOs").


b. The DCOs shall:

(1) monitor and manage the matters requiring coordination as
determined by the JSC, according to the policy and
guidelines established by the JSC;


(2) monitor and manage all matters of a joint nature within the
specific district of each DCO, including the coordination of
activities by one side which may affect the other side;


(3) review, investigate and report to the JSC on the overall
situation within the DCO's respective district, with special
regard to specific events, incidents and activities
occurring in the district;


(4) direct the Joint Patrols and Joint Mobile Units as defined
in this Article, operating within the DCO's respective
district; and


(5) direct the Liaison Bureau established under Article X below,
operating at passages and crossing points as detailed in
Article VII and X below, in conjunction with the Joint Civil
Affairs Coordination and Cooperation Committee set up under
Annex II to the Agreement (hereinafter the "CAC").


c. Each DCO will be continuously staffed by a team of up to six
officers from each side, comprising one commander and five duty
officers.


d. The DCOs will be operated jointly by both sides, 24 hours a day.
At least one duty officer from each side will be present during
each eight-hour shift, as well as the necessary number of
assistants.


e. With a view to preventing friction and to enabling the two sides
to deal with possible incidents, both sides shall ensure that
the relevant DCO shall immediately be notified of any of the
following events:


(1) routine, scheduled or irregular activity or deployment by
the Israeli military forces or the Palestinian Police that
directly affect the other side. This includes activity or
deployment in the proximity of Settlements or Palestinian
villages, as the case may be;


(2) events that pose a threat to public order;

(3) activities which disturb the regular flow of traffic on the
main roads, including roadblocks and road works;


(4) incidents involving both Israelis and Palestinians, such as
road accidents, rescue of casualties or persons in mortal
danger, engagement steps or any incident in which a weapon
is used;


(5) a terrorist action of any kind and from any source;

(6) infiltrations across the lines of the Gaza Strip and the
Jericho Area; and


(7) all cases in which Israelis are hospitalized in the Gaza
Strip or the Jericho Area or in which Palestinians of the
Gaza Strip or the Jericho Area are hospitalized in Israel.


f. Each DCO shall notify the relevant Israeli and Palestinian
headquarters, as well as the Joint Patrols and Joint Mobile
Units operating in the relevant district, of the occurrence of
any of the events listed in subparagraph e. above.


g. The JSC may modify the content of the list of events outlined in
subparagraph e. above.


h. Any event involving injury to Israelis, at any location within
the Gaza Strip or the Jericho Area, shall be immediately
reported to Israel through the relevant DCO. Israel may employ
any means necessary for the evacuation and treatment of such
injured persons, and will coordinate such activity through the
relevant DCO.


i. The DCOs shall be equipped with the necessary means of
communication to enable direct and immediate contact both with
the Joint Patrols and the Joint Mobile Units, as well as with
the respective district headquarters.


3. Joint Patrols

a. The mission of the Joint Patrols is to ensure free, unimpeded
and secure movement along the roads and in the areas described
in Articles IV and V of this Annex.


b. Unless the JSC decides otherwise, the Joint Patrols shall each
be composed of two 4-wheel drive vehicles, one Palestinian and
one Israeli. The vehicles shall be marked so as to be easily
distinguishable from all other vehicles in the area. There will
be four persons in each vehicle: an officer, a signal operator,
a driver and a guard.


c. The Joint Patrols will patrol 24 hours a day, in vehicles and on
foot, along their routes of activity and on the adjacent sides
of the roads upon which the security of traffic along these
roads is dependent, or as directed by the DCO.


d. In roads under Israeli security responsibility, the Israeli
vehicle will be the leading vehicle. In roads under Palestinian
security responsibility, the Palestinian vehicle will be the
leading vehicle. The Joint Patrol will be under the direction of
the relevant DCO.


e. The Joint Patrols shall monitor continuously movement within
their area of operation with a view to preventing incidents that
may threaten or endanger persons using the roads. They shall
report any such incident or threat thereof to the relevant DCO,
and to the Israeli and Palestinian district headquarters.


f. On reaching the scene of an incident, the Joint Patrol will
provide as much assistance as possible. Where the incident is
dealt with by the authorities functioning in the area, the Joint
Patrol shall verify that the appropriate measures have been
taken and report to the relevant DCO accordingly.


g. Immediately upon becoming aware of the occurrence of one of the
events listed in subparagraph 2.e above, the Joint Patrols shall
report the event to the relevant DCO, as well as to the
respective headquarters of the two sides.


4. Joint Mobile Units

a. The mission of the Joint Mobile Units is to provide rapid
response in the event of incidents and emergency situations, in
order to ensure free, unimpeded and secure movement at the
junctions where they are located, as well as along their
designated routes of activity.


b. The composition of the Joint Mobile Units shall be similar to
that of the Joint Patrols.


c. The duties of the Joint Mobile Units are:

(1) to monitor movement along designated roads from stationary
locations on agreed junctions, from where they may patrol at
random on agreed roads as directed by the relevant DCO, in
which case their duties shall be the same as those of Joint
Patrols; and


(2) in the event of an incident involving both Israelis and
Palestinians, to reach the site of the incident in order to
provide assistance and to investigate.


5. Review of Security Arrangements

The JSC shall meet six months after the signing of this Agreement,
and at six-month intervals thereafter, to review the security
arrangements and to recommend changes. Amendments will be adopted by
mutual agreement based, among other factors, on the regular reports
and recommendations received from the DCOs.





Article III

The Palestinian Directorate of Police Force


1. General

The Palestinian Directorate of Police Force (hereinafter "the
Palestinian Police") shall function in accordance with the following
principles:


a. It will be responsible for public order and internal security
within the jurisdiction of the Palestinian Authority in
accordance with Article V of the Agreement.


b. Movement of Palestinian policemen between the Gaza Strip and the
Jericho Area will be conducted in accordance with Article IX of
this Annex.


2. Duties and Functions

a. Subject to the provisions of this Agreement, in the areas under
Palestinian jurisdiction the duties of the Palestinian Police
shall be as follows:


(1) performing normal police functions, including maintaining
internal security and public order;


(2) protecting the public and its property and acting to provide
a feeling of security and safety;


(3) adopting all measures necessary for preventing crime in
accordance with the law; and


(4) protecting public installations and places of special
importance.


3. Structure and Composition

a. The Palestinian Police shall consist of one integral unit under
the control of the Palestinian Authority. It shall be composed
of four branches:


(1) Civil Police (Al Shurta);

(2) Public Security;

(3) Intelligence; and

(4) Emergency Services and Rescue (Al Difa'a Al Madani).

In each district, all members of the four Police branches shall
be subordinate to one central command.


b. The Palestinian Police will establish a Palestinian Coastal
Police unit (hereinafter the "Palestinian Coastal Police") in
accordance with Article XI of this Annex.


c. The Palestinian Police will be comprised of up to 9,000
policemen in all its branches.


4. Recruitment

a. The Palestinian Police shall consist of policemen recruited
locally, and from abroad (from among individuals holding
Jordanian passports or Palestinian documents issued by Egypt).
The number of Palestinian recruits from abroad shall not exceed
7,000, of whom 1,000 will arrive three months after the signing
of the Agreement.


b. Palestinians recruited from abroad should be trained as
policemen. The employment of policemen who have been convicted
of serious crimes or have been found to be actively involved in
terrorist activities subsequent to their employment will be
immediately terminated. The list of Palestinians recruited,
whether locally or from abroad, shall be agreed on by both
sides.


c. Palestinian policemen coming from abroad may be accompanied by
spouse and children.


5. Arms, Ammunition and Equipment

a. Uniformed policemen, as well as other policemen on duty who hold
special accreditation, may carry arms.


b. The Palestinian Police will possess the following arms and
equipment:


(1) 7,000 light personal weapons.

(2) Up to 120 machine guns of 0.3" or 0.5" caliber.

(3) Up to 45 wheeled armored vehicles of a type to be agreed on
between the two sides, and of which 22 will be deployed in
protecting Palestinian Authority installations. The use of
wheeled armored vehicles in the Security Perimeter, on the
Lateral Roads and on their adjacent sides, or in the
vicinity of the Settlements shall be approved through the
relevant DCO. Movement of such vehicles along the central
North-South road (Road No. 4) in the Gaza Strip may take
place only after providing notification to the relevant DCO.


(4) Communication systems, subject to Article II of Annex II of
this Agreement.


(5) Distinctive uniforms, identification badges and vehicle
markings.


c. Relevant police equipment and infrastructure funded from the
budget of the Civil Administration shall be transferred to the
Palestinian Police.


6. Introduction of Arms and Equipment and Foreign Assistance

a. All foreign contributions and other forms of assistance to the
Palestinian Police must comply with the provisions of this
Agreement.


b. The introduction into the Gaza Strip or the Jericho Area of
arms, ammunition or equipment for the Palestinian Police, from
all sources, shall be coordinated through the JSC.


7. Deployment

The Palestinian Police shall be initially deployed in the Gaza Strip
and the Jericho Area as shown on attached maps Nos. 4 and 5. Any
changes to this deployment will be agreed on in the JSC.




Article IV

Security Arrangements in the Gaza Strip


1. The Delimiting Line

For the purpose of the present Agreement only, and without prejudice
to the final status, the line delimiting the northern and eastern
edge of the Gaza Strip follows the fence on the ground, as
delineated on attached map No. 1 by an unbroken green line
(hereinafter "the Delimiting Line") and shall have no other effect.


2. Security Perimeter

a) There will be a security perimeter along the Delimiting Line
inside the Gaza Strip as delineated on attached map No. 1 by a
broken green line (hereinafter "the Security Perimeter").


b) In accordance with the provisions of this Agreement, the
Palestinian Police will be responsible for security in the
Security Perimeter.


c) The Palestinian Police will enforce special security measures
aimed at preventing infiltrations across the Delimiting Line or
the introduction into the Security Perimeter of any arms,
ammunition or related equipment, except for the arms, ammunition
or equipment of the Palestinian Police, authorized through the
relevant DCO.


d) Activities of the Palestinian Police inside the Security
Perimeter will be coordinated through the relevant DCO. Security
activities in Israel in the vicinity of the Delimiting Line that
directly affect the other side will be coordinated with the
Palestinian Police through the relevant DCO.


3. The Israeli Settlements

a. In accordance with the Declaration of Principles, during the
interim period, the Gush Katif and Erez settlement areas, as
well as the other settlements in the Gaza Strip, as delineated
on attached map No. 1 by a blue line, will be under Israeli
authority.


b. Palestinians will be free to move along the coast road and along
the road from the Netzarim Junction to the seashore.


4. The Yellow Areas

a. In the areas delineated by a broken red line and shaded in
yellow on attached map No. 1 (hereinafter "the Yellow Areas"),
and without derogating from Palestinian authority,
responsibility will be shared as follows: The Israeli
authorities will have the overriding responsibility and powers
for security, and the Palestinian Authority will have the
responsibility and powers for civil affairs, subject to this
Agreement. In addition, with regard to the Yellow Areas,
cooperation and coordination in security matters, including
joint patrols, as agreed, will be implemented.


b. Entry of Palestinian policemen into the Yellow Areas and their
activity therein may take place as agreed upon through the
relevant DCO.


5. The Mawasi Area

a. Two joint patrols will operate in the Mawasi area, the
fishermen's wharves of Rafah and Khan Yunis, and along the coast
road led by the Israeli vehicle.


b. Access of Palestinians to the Mawasi Area, as delineated on
attached map No. 1, will be by the following roads:


(1) Rafah - Tel Sultan - Mawasi;

(2) Khan Yunis - El Bahr Village; and

(3) Deir El Ballah - along the beach to the Mawasi.

c. The Mawasi Beach

(1) Notwithstanding Israeli authority over the Gush Katif
settlement area, the Palestinian Authority may operate
sections of the Mawasi beach extending to the east up to the
coast road, totalling, together with the Rafah and Khan
Yunis wharves, five (5) kilometers.


(2) Upon the completion of the withdrawal of Israeli military
forces from the Gaza Strip and the Jericho Area, Israel will
notify the Palestinian Authority of the locations of these
sections.


(3) These sections may be used for the following purposes:

(a) sport and recreation, including boat hire facilities;

(b) operating food establishments;

(c) enlarging the wharves; and

(d) expanding the facilities for fishermen, such as offices,
wharehouses and cold storage facilities.


(4) In these sections, the Palestinian Authority, in exercising
its civil authority, will be able to grant licenses for
businesses, collect fees and taxes, set and enforce public
health standards and develop and manage the tourist sector.


(5) In each of the fishermen's wharves, the Palestinian
Authority may have an office building which shall be
protected.


(6) There will be not be any construction by Israelis of new
sites along the beach.


(7) During a period of three months from the signing of this
Agreement, Israel may consider, in light of the security
situation, the use by the Palestinian Authority of
additional beach sections.


6. The Egyptian Border

The Military Installation Area along the Egyptian border in the Gaza
Strip, as delineated on attached map No. 1 by a blue line and shaded
in pink, will be under Israeli authority.


The village of Dahaniya will remain part of the Military
Installation Area pending a declaration of a general amnesty for the
residents of the village, and provision having been made for their
protection. Upon realization of the above amnesty and protection,
the village of Dahaniya will become part of the Yellow Area.


7. Lateral Roads to the Settlements

a. Without derogating from Palestinian authority and in accordance
with the Declaration of Principles:


(1) On the three lateral roads connecting the Israeli
settlements in the Gaza Strip to Israel, namely: the
Kissufim-Gush Katif road; the Sufa-Gush Katif road; and the
Karni-Netzarim road, as delineated by a light blue line on
attached map no. 1, including the adjacent sides upon which
the security of traffic along these roads is dependent
(hereinafter "the Lateral Roads"), the Israeli authorities
will have all necessary responsibilities and powers in order
to conduct independent security activity, including Israeli
patrols.


(2) Joint Israeli-Palestinian patrols will operate along the
Lateral Roads. Such joint patrols will be led by the Israeli
vehicle.


(3) Where the Israeli authorities carry out engagement steps,
they will do so with a view to transferring, at the earliest
opportunity, the continued handling of the incidents falling
within Palestinian responsibility, to the Palestinian
Police.


(4) Overpasses will be constructed on intersections between the
Lateral Roads and the central North-South road (Road No. 4).


(5) These arrangements will be reviewed by the JSC one year
after the date of the signing of this Agreement.


b. Where the Lateral Roads overlap the Security Perimeter the two
sides, in the exercise of their respective powers and
responsibilities, will fully coordinate their activity in order
to prevent friction.


8. The Central North-South Road (Road No. 4) A joint patrol led by the
Palestinian vehicle will be operated along the central North-South
road (Road No. 4) in the Gaza Strip between Kfar Darom and Wadi
Gaza.


9. Joint Mobile Units

a. Joint Mobile Units will be located at the following junctions:

(1) the Nissanit junction;

(2) the Netzarim junction:

(3) the Deir el-Ballah junction; and

(4) the Sufa-Morag junction.

b. At the Netzarim junction, the Israeli side of this Joint Mobile
Unit will check Israeli vehicles, which will then be able to
continue their journey without interference. This Joint Mobile
Unit will also operate as a Joint Patrol between the Netzarim
Junction and Wadi Gaza under the direction of the relevant DCO.


10. Coordination and Cooperation in the Gaza Strip Two DCOs will
function in the Gaza Strip as follows:


a. A DCO for the Gaza district, located at the Erez crossing point
with subordinate Joint Liaison Bureaus at the Erez and Nahal Oz
crossing points.


b. A DCO for the Khan Yunis district, located at the Nuriya Camp
with subordinate Joint Liaison Bureaus at the Sufa crossing
point and at the Rafah terminal.




Article V

Security Arrangements in the Jericho Area


1. Clarifications Concerning the Jericho Area With regard to the
definition of the Jericho Area, as delineated on attached map No. 2,
it is hereby clarified that Route No. 90 crossing Auja from South to
North and the East-West road connecting Route No. 90 with Yitav, and
their adjacent sides, shall remain under Israeli authority. For the
purpose of this Article, the width of each such road and its
adjacent sides, as shown on attached map No. 2, shall extend at
least 12 meters on each side measured from its center.


2. A Joint patrol led by the Palestinian vehicle shall operate along
the main North-South road crossing Jericho (Route No. 90).


3. Joint Mobile Units

a. A Joint Mobile Unit shall be located at the Auja junction being
the intersection of Route No. 90 and the road to Yitav. This
unit shall be led by the Israeli vehicle, and may be directed by
the DCO to deal with certain incidents occurring on the road
between Auja and Jericho in which Palestinians are involved.


b. A Joint Mobile Unit shall be located at the Nahal Elisha
junction on the road from Jericho to the Mousa Allami project.


4. Coordination and Cooperation in the Jericho Area A DCO located at
the Vered Yericho crossing point will function in the Jericho Area
and will maintain a subordinate Joint Liaison Bureau in the Allenby
Terminal.


5. a. Pending the entry into force of the interim agreement, the holy
site of Nebi Mousa will be under the auspices of the Palestinian
Authority, for religious purposes.


b. During religious events that take place three times a year and
other special occasions that will be coordinated with the
Israeli authorities, Palestinians will have the right to
religious pilgrimage to the al-Maghtas under the Palestinian
flag.


c. Palestinian private projects, as well as joint ventures in
accordance with the Declaration of Principles, will be located
as agreed on the shore of the Dead Sea.


d. Safe passage will be provided from the Jericho Area to Nebi
Mousa, al-Maghtas and the projects and ventures as agreed in
subparagraph c. above on the shore of the Dead Sea for the
aforementioned purposes.


6. Within three months of the signing of this Agreement, Israel may
consider, in light of the security situation, the possibility of
widening of the Jericho Area.




Article VI

Security Arrangements Concerning
Planning, Building and Zoning



1. Notwithstanding the provisions relating to planning, building and
zoning set out elsewhere in this Agreement, the provisions of this
Article shall apply with respect to the areas specified below.


2. These arrangements will be reviewed within a period of six months
from the signing of this Agreement and, thereafter, every six
months, with a view to modifying them, with due consideration to
Palestinian plans for establishing economic projects, and to the
security concerns of both sides.


3. The limitations set out below on the construction of buildings and
installations in specific areas shall not require the demolition or
removal of existing buildings or installations.


4. The existing buildings, installations and natural and artificial
culture in the Gaza Strip within a distance of 100 meters from the
Delimiting Line shall remain as they are at present.


5. Within the next 500 meters of the Security Perimeter, and within the
Yellow Areas, buildings or installations may be constructed,
provided that:


a. one building or installation may be constructed on each plot,
the size of which shall not be less than 25 dunams; and


b. such building or installation shall not exceed two floors, of a
size not exceeding 180 sq. meters per floor.


The Palestinian Authority shall maintain the predominantly
agricultural character of the remaining areas of the Security
Perimeter.


6. Buildings or installations shall not be constructed on either side
of the Lateral Roads up to a distance of 75 meters from the center
of these Roads.


7. In the Jericho Area, no bridges or other structures will be built
above Route No. 90 which may prevent the movement on this road of
vehicles with a height of up to 5.25 meters.


8. For the purpose of enforcing this Article, the United States will
provide both sides with satellite photographs of the Gaza Strip
depicting the buildings, installations and natural and artificial
culture existing at the time of the signing of this Agreement.





Article VII

The Crossing Points


1. General

a. Israel declares that work to relocate the Erez, Nahal Oz and
Sufa crossing points currently within the Gaza Strip, to a
location within Israel adjacent to the Delimiting Line, is
underway. Israel will attempt to complete this work not later
than 12 months from the date of the signing of this Agreement
with regard to the Erez crossing point, and not later than 8
months from the date of the signing of this Agreement with
regard to the Nahal Oz and Sufa crossing points. Pending the

completion of this work, Israel shall retain control over these
crossing points and operate them in accordance with the
provisions of this Article.


b. Israelis entering the Gaza Strip and the Jericho Area shall
carry Israeli documentation (if they are above the age of
16)
and, if driving a vehicle, a driving license and vehicle
registration documentation recognized in Israel. Tourists to

Israel entering the Gaza Strip and the Jericho Area shall carry
their passports and other relevant documentation.


c. Entry of residents of the Gaza Strip and the Jericho Area to
Israel shall be subject to Israeli laws and procedures
regulating entry into Israel, and such residents shall be

required to carry the identity card as agreed upon in this
Agreement, as well as documentation specified by Israel and
notified through the CAC to the Palestinian Authority.


d. The provisions of this Agreement shall neither prejudice the
use of safe passage nor Israel's right, for security and safety

considerations, to close the crossing points to Israel and to
prohibit or limit the entry into Israel of residents and of
vehicles from the Gaza Strip and the Jericho Area.

2. Passage between the Gaza Strip and Israel

a. Passage between the Gaza Strip and Israel will be via one or
more of the following crossing points:

(1) the Erez crossing point;

(2) the Nahal Oz crossing point; and

(3) the Sufa crossing point.


b. The Palestinian Authority may set up a checkpoint, within the
Gaza Strip, on the road leading to the Erez crossing point and
on the road leading to the Nahal Oz crossing point, at locations

to be coordinated between the two sides, for the purpose of
inspection and identification of passengers and vehicles.
Israelis and tourists to Israel passing through these
checkpoints may be only required to identify themselves by
presenting Israeli documentation or a passport, as set out in
subparagraph 1.b. above. The above requirements shall not apply
to uniformed members of the Israeli military forces.


c. The Palestinian Authority may set up a checkpoint, within the
Gaza Strip, on the road leading to the Sufa crossing point, at a
location acceptable to both sides, for the purpose of inspection
and identification of Palestinian passengers and vehicles.

Israeli vehicles may bypass this checkpoint unimpeded.

d. Passage of Israelis, and tourists to Israel, between the Gaza
Strip and Israel may, in addition, be via the following crossing

points:

(1) the Karni crossing point;


(2) the Kisufim crossing point;


(3) the Kerem Shalom crossing point; and


(4) the Elei Sinai crossing point.


e. Israelis, and tourists to Israel, who have passed through any of
the above crossing points into the Gaza Strip shall not be

required to undergo any inspection, identification or other
requirement in addition to the stated provisions for entry into

the Gaza Strip outlined in this Article.

Tourists to the Gaza Strip and the Jericho Area from countries
having diplomatic relations with Israel, who have passed through
an international crossing, will not be required to pass any
additional entry control before entry to Israel.

f. Arrangements for the movement of goods between the Gaza Strip
and Israel through the crossing points are set out in Annex IV

g. A Palestinian liaison officer will be present at each of the
crossing points on the Lateral Roads.


3. Passage to and from the Jericho Area

a. Passage between the Jericho Area and the rest of the West Bank

shall be governed by the same rules regulating the movement of
persons and vehicles within the West Bank, and shall not need to

be effected through designated crossing points.

b. Passage between the Jericho Area and Israel via the West Bank
shall be governed by the currently applicable rules regulating
the movement of persons and vehicles between the West Bank and
Israel.



Article VIII

Rules of Conduct in Security Matters


1. Subject to the provisions of this Agreement, the security and public
order personnel of both sides shall exercise their powers and
responsibilities pursuant to this Agreement with due regard to
internationally-accepted norms of human rights and the rule of law
and shall be guided by the need to protect the public, respect human
dignity and avoid harassment.


2. In the Yellow Areas and on the Lateral Roads and their adjacent
sides, vehicles bearing Israeli license plates shall not be stopped,
obstructed or delayed by the Palestinian Police, and no
identification shall be required.


3. On the central North-South road (Road No. 4) in the Gaza Strip
between the Netzarim Junction and Kfar Darom, and on the main
North-South road crossing the Jericho Area (Route No. 90),
vehicles
bearing Israeli license plates may be stopped for identification by
a Joint Patrol or a Joint Mobile Unit. The Israeli side of such a
patrol or unit may carry out identity and vehicle documentation

checks

4. Without prejudice to the provisions of this Article regarding the
areas mentioned in paragraphs 2 and 3 above, the following rules of
conduct shall apply throughout the rest of the Gaza Strip and the
Jericho Area:


a. Vehicles bearing Israeli license plates may be stopped by the
Palestinian Police for the purpose of checking the driving

license, and passengers' identity documentation (if above the
age of sixteen).

b. Israelis shall under no circumstances be apprehended, arrested
or placed in custody or prison by Palestinian authorities.

However, where an Israeli is suspected of having committed of an
offense, he or she may be detained in place by the Palestinian
Police while ensuring his or her protection, in accordance with
the provisions of Annex III, until the arrival of a Joint Patrol
or Joint Mobile Unit, called immediately by the Palestinian

Police, or of other Israeli representatives dispatched by the
relevant DCO.

5. Pedestrians may be required to produce identity documentation (if
above the age of sixteen). Thereafter, they shall be treated in
accordance with the Provisions of this Article

6. Uniformed members of the Israeli military forces, as well as
vehicles of the Israeli military forces, shall not be stopped by
the
Palestinian Police in any circumstances, and shall not be subject to

any identification requirements. Without derogating from the above,
in the event of suspicion regarding such a person or vehicle, the
Palestinian Police may notify the Israeli authorities through the
relevant DCO, in order to request appropriate assistance.

7. Notwithstanding the provisions of this Article, persons who are
subject to identification pursuant to this Article and who claim
to
be Israelis but cannot present appropriate identification
documentation may be detained in place by the Palestinian Police, in

accordance with the provisions of Annex III, until the arrival of a
Joint Patrol or Joint Mobile Unit, called by the Palestinian Police,
or of other Israeli representatives dispatched by the relevant DCO.

8. a. Each side shall enforce upon civilians subject to its
authority
a prohibition on possession or carrying weapons without a license.


b. The Palestinian Authority may grant licenses to possess or carry
pistols for civilian use. The modalities for granting such

licenses, as well as categories of persons who may be granted
such licenses, will be agreed upon in the JSC.

9. Rules of Engagement

a. For the purpose of this Article, "engagement" shall mean an

an immediate response to an act or an incident constituting
a danger to life or property that is aimed at preventing or

terminating such an act or incident, or at apprehending its
perpetrators.

b. Within the territory under the jurisdiction of the Palestinian
Authority, in places where Israeli authorities exercise their
security functions in accordance with this Annex, and in their
immediate vicinities, the Israeli authorities may carry out
engagement steps in cases where an act or an incident requires
such action. In such cases, the Israeli authorities will take
any measures necessary to bring to an end such an act or
incident with a view to transferring, at the earliest
opportunity, the continued handling of the incident falling
within the Palestinian responsibility to the Palestinian Police.
The Palestinian Authority will immediately be notified, through
the relevant DCO, of such engagement steps.

c. Engagement with the use of firearms shall not be allowed, except
as a last resort after all attempts at controlling the act or
the incident such as warning the perpetrator or shooting in the

air have failed. Use of firearms should be aimed at deterring
and not at killing the perpetrator. The use of firearms shall

cease once the danger is past.

d. Any activity involving the use of firearms other than for
immediate operational purposes shall be subject to prior

notification to the relevant DCO.

10. If a person is injured or otherwise in need of assistance, such
assistance will be provided by the side that first reaches the
site.
If such a person is under the authority of the other side, the

assisting side shall notify the relevant DCO and the appropriate
provisions of Article II of this Annex, as well as the provisions of
Annex II, Article II, regarding arrangements for treatment and
hospitalization, shall be applied.



Article IX

Arrangements for Safe Passage

Between the Gaza Strip and the Jericho Area


1. General

a. There shall be safe passage between the Gaza Strip and the
Jericho Area for residents of the Gaza Strip and the Jericho

Area and visitors to these areas from abroad, as detailed in
this Article.

b. Israel will ensure safe passage during daylight hours (from
sunrise to sunset) for persons and transportation.

c. Safe passage will be effected via the following designated
crossing points:

(1) the Erez crossing point; and

(2) the Vered Yericho crossing point.


d. Israel will make safe passage available through one or more of
the routes delineated on attached map No. 3.

2. The usage of safe passage

a. As detailed below, persons using safe passage shall carry, in
addition to the personal and vehicle documentation, the

following documents:

(1) a safe passage card; and


(2) (for drivers only) a vehicle safe passage permit.


Arrangements for implementation of safe passage, as well as
modalities for the issuance by Israel of safe passage cards and
vehicle safe passage permits, shall be discussed and agreed in

the CAC.

b. Residents of the Gaza Strip and the Jericho Area in possession
of a permit enabling them to enter Israel will be able to use

this permit as a safe passage card.

c. Safe passage cards and vehicle safe passage permits shall be

stamped by the Israeli authorities at the crossing point with
the time of departure from the crossing point and the estimated

time of arrival.

d. Residents of the Gaza Strip and the Jericho Area who are denied
entry into Israel may be permitted by Israel to use safe passage

in accordance with special arrangements to be made in each
individual case through the JSC.

e. Special arrangements will apply with respect to passage of
Palestinian leaders, senior Palestinian Authority officials and
distinguished personalities. The CAC will define the scope and

nature of these special arrangements, in consultation with the
JSC.

f. The mode of passage of Palestinian policemen on duty, between
the Gaza Strip and the Jericho Area, will be coordinated through
the JSC.

g. Any additional matters relating to the usage of safe passage

will be coordinated through the JSC.

3. Passage and Mode of Transit


a. Persons and vehicles in transit under these arrangements shal
neither break their journey nor depart from the designated

routes, and shall complete the transit within the designated
time stamped on their safe passage cards and permits, unless a
delay is caused bye a medical emergency or a technical breakdown.

b. Persons using safe passage shall be subject to the laws and

regulations applicable in Israel and in the West Bank
respectively.

c. Persons and vehicles using safe passage shall not carry
explosives, firearms or other weapons or ammunition, except
for special cases that will be agreed to in the JSC.

4. General Provisions Regarding the Routes

a. The above arrangements shall in no way affect the status of the
routes used for safe passage.

b. Routes used for safe passage shall be closed on Yom Kippur,

Israel's Memorial Day and Israel's Independence Day.

c. Without prejudice to the use of safe passage, Israel may, for

security or safety reasons, temporarily modify the arrangements
for safe passage. Notice of such temporary modification shall be

given to the Palestinian authority through the JSC. At least one
route of safe passage shall, however, remain open.

d. Israel shall notify the Palestinian Authority of incidents

involving persons using safe passage.



Article X


Passages


1. General

a. While Israel remains responsible during the interim period for
external security, including along the Egyptian border and the
Jordanian line, border crossing shall take place according to
the arrangements included in this Article. These arrangements

aim at creating a mechanism that facilitates the entry and exit
of people and goods, reflecting the new reality created by the
Declaration of Principles, while providing full security for
both sides.

b. The arrangements included in this Article shall apply to the
following border crossings:


(1) the Allenby Bridge crossing; and


(2) the Rafah crossing.


c. The same arrangements will be applied by the Parties, with the
necessary adjustments, to agreed seaports, airports or other
international crossings, such as the Abdullah and Damya bridges.


d. The two sides are determined to do their utmost to maintain the
dignity of persons passing through the border crossings. To this

end, the mechanism created will rely heavily on brief and modern
procedures.

e. In each border crossing there will be one terminal, consisting
of two wings. The first wing will serve Palestinian residents of
the Gaza Strip and West Bank and visitors to these areas
(hereinafter "the Palestinian Wing"). The second wing will serve
Israelis and others (hereinafter "the Israeli Wing"). There will
be a closed Israeli checking area and a closed Palestinian
checking area, as set out below.

f. Special arrangements will apply to VIPs crossing through the
Palestinian Wing. The liaison bureau to be established pursuant
to paragraph 5 below (hereinafter "the Liaison Bureau") will
define the scope and the nature of these special arrangements.

2. Control and Management of the Passages

a. For the purpose of this Article, "passage" is defined to mean
the area from the crossing barrier at the Egyptian border or the
Allenby Bridge, passing through and including the terminal and:


(1) with regard to the Allenby Bridge crossing, from the
terminal up to the Jericho Area; and


(2) with regard to the Rafah crossing, from the terminal up to
the outer limit of the Israel military location along the

Egyptian border.

b. (1) Israel will have the responsibility for security throughout
the passage, includinq for the terminal.

(2) An Israeli director-general will have the responsibility for
the management and security of the terminal.


(3) The director-general will have two deputies who will report
to him:


(a) an Israeli deputy who will be the manager of the Israeli

Wing. Israel will have exclusive responsibility for the
management of the Israeli Wing; and

(b) a Palestinian deputy,- appointed by the Palestinian

Authority, who will be the manager of the Palestinian Wing.

(4) Each deputy will have an assistant for security and an
assistant for administration. The assignments of the
Palestinian deputies for security and administration will be
agreed upon by the two sides.


(5) There will be maximum coordination between the two sides.
Both sides will maintain cooperation and coordination on
matters of mutual concern.


(6) The director-general will continue to use Palestinian
contractors to provide bus services and other administrative

and logistical services.

(7) Palestinian policemen present at the terminal will be armed
with handguns. Their deployment will be decided upon by the
two sides. Other Palestinian officials present at the
terminal will be unarmed.

(8) The details of management and security and Liaison Bureau
issues will be dealt with by the two sides.

(9) The two sides will work together in order to seek ways for
additional arrangements in the Rafah terminal.

(10) Both sides will review these procedures in a year's time.


c. Except for the arrangements included in this Article, the
current procedures and arrangements applicable outside the
terminal shall continue to apply throughout the passage.

d. (1) Once incoming passengers have crossed the terminal, they

will proceed to the Jericho Area or the Gaza Strip, as
appropriate, without any interference from Israeli
authorities (safe passage).

(2) Outgoing passengers may proceed to the terminal without any
interference from Israeli authorities after joint
verification that such passengers hold the necessary
documentation for exiting the area to Jordan or Egypt, as
set out in this Agreement.

3. Arrangements for Entry from Egypt and Jordan Through the Palestinian
Wing


a. At the entrance to the Palestinian Wing there will be a
Palestinian policeman and a raised Palestinian flag.

b. Before entering the Palestinian Wing, passengers will identify
their personal luggage and it will be placed on a conveyor belt.
Each side will be able to inspect such luggage inside its own
checking area, using its own personnel and, if necessary, may
open the luggage for inspection in the presence of the owner and
a Palestinian policeman.

c. Persons entering the Palestinian Wing will pass through a
magnetic gate. An Israeli policeman and a Palestinian policeman

will be posted on each side of this gate. In the event of
suspicion, each side will be entitled to require a physical
inspection to be conducted in inspection booths to be located
adjacent to the gate. Passengers will be inspected by a
Palestinian policeman in the presence of an Israeli policeman.
Accompanying personal belongings may also be inspected at this
point.

d. Having completed the above phase, persons entering the
Palestinian Wing will pass through one of three lanes for the

purpose of identification and document control, as follows:

(1) The first lane will be used by Palestinian residents of the
Gaza Strip and the Jericho Area. These passengers will pass

via a Palestinian counter, where their documents and
identity will be checked. Their documents will be checked by
an Israeli officer who will also check their identity
indirectly in an invisible manner.

(2) The second lane will serve other Palestinian residents of
the West Bank. These passengers will first pass via a

Palestinian counter, where their documents and identity will
be checked. Then they will continue via an Israeli counter,
where their documents and identity will be checked. The two
counters will be separated by tinted glass and a revolving
door.

(3) The third lane will serve visitors to the Gaza Strip and
West Bank. An identical procedure as in paragraph 3.d(2)

above will apply to such visitors, except that they will
first pass via the Israeli counter, and then continue via
the Palestinian counter.

e. In the event of suspicion regarding a passenger in any of the
three lanes described in subparagraph d. above, each side may
question such passenger in its closed checking area. Suspicion
justifying questioning in the closed checking area may be one of

the following:

(1) the passenger was involved, directly or indirectly, in
criminal or planned criminal activity, in terrorist or
planned terrorist activity and is not a beneficiary of
the
amnesty provisions of this Agreement.

(2) the passenger conceals arms, explosives or related
equipment;

(3) the passenger holds forged or non-valid documentation or the
details included in the documentation are inconsistent with

those included in the population registry (in case of a
resident) or in the data base (in case of a visitor), except
that questions relating to such inconsistency will initially
be raised at the counter and the passenger will be
questioned in the closed checking area only if the suspicion
has not been removed; or

(4) the passenger acts in an obviously suspicious behavior
during the passage via the terminal.

If, at the conclusion of this questioning, the suspicion has not
been removed, such passenger may be apprehended, after the other
side has been notified. In case of a Palestinian suspect being

apprehended by the Israeli side, a Palestinian policeman will be
asked to meet with the suspect. Following notification to the
Liaison Bureau, any further treatment of the apprehended person
will be in accordance with Annex III.

f. In the Palestinian Wing, each side will have the authority to
deny the entry of persons who are not residents of the Gaza

Strip and West Bank.

For the purpose of this Agreement, "residents of the Gaza Strip

and West Bank" means persons who, on the date of entry into
force of this Agreement, are registered as residents of these
areas in the population registry maintained by the military
government of the Gaza Strip and West Bank, as well as persons
who have subsequently obtained permanent residency in these
areas with the approval of Israel, as set out in this Agreement.

g. Following the above procedure, the passengers will collect their
luggage and proceed to the customs area as described in Annex
IV.

h. The Palestinian side will provide passengers whose entry is
approved with an entry permit stamped by the Palestinian side
and attached to their documents.

At the conclusion of the direct and indirect checking of the

documents and identity of passengers passing via the first lane
and stamping their entry permits, the Palestinian officer will

provide the passenger with a white card issued by the Israeli
officer. A Palestinian official posted at the exit of the
Palestinian Wing will verify that the passenger holds such a
white card and will collect the cards with indirect and
invisible Israeli checking.

For passengers going through the second and third lanes, the
Israeli officer will provide the passengers with a blue card,

after checking their documents and identity, and verifying their
entry permits. An Israeli and a Palestinian official posted at
the exit of the Palestinian Wing will verify and collect the
cards. White and blue cards collected will be checked by Israeli
and Palestinian officials.

In cases where either side denies the entry of a non-resident
passenger, that passenger will be escorted out of the terminal
and sent back to Jordan or Egypt, as appropriate, after
notifying the other side.

4. Arrangements for Exit to Egypt and Jordan Through The Palestinian
Wing

Passengers exiting to Egypt or Jordan through the Palestinian Wing
will enter the terminal without their luggage. Thereafter, the same
procedures described in paragraph 3 above will apply to them, except
that the order of passing via the Israeli and Palestinian counters
will be reversed.

5. Liaison Bureau


a. There will be a liaison bureau at each crossing point in order
to deal with matters arising regarding passengers passing
through the Palestinian Wing, issues requiring coordination, and
differences regarding the implementation of these arrangements.
Without derogating from Israel's responsibility for security,
the bureau will also deal with incidents.

b. This bureau will be comprised of an equal number of
representatives from each side and will be located at a

specified location inside each terminal.

c. This bureau will be subordinate to the relevant subcommittee of
the CAC.


6. Miscellaneous

a. Special arrangements will be agreed upon by the two sides
regarding the passage of goods, buses, trucks and
privately-owned vehicles. Pending this agreement, the
current arrangements will continue to apply.


b. Israel will attempt to complete the structural alterations on
the Rafah and Allenby Bridge terminals not later than the date
of the completion of the withdrawal of Israeli forces from the

Gaza Strip and the Jericho Area. If these structural alterations
are not completed by that time, the arrangements described in
this Article shall apply, except for those arrangements that
cannot be implemented without the structural alterations.

c. In order to cross through the crossing points into and out of
the Gaza Strip and the Jericho Area, residents of these areas
will use documents as detailed in Annex II. Pending the entry
into force of the Interim Agreement, other West Bank residents
will continue to use the existing documents issued by the
military government and its Civil Administration .



Article XI

Security Along the Coastline and in the Sea of Gaza


1. Maritime Activity Zones

a. Extent of Maritime Activity Zones The sea off the coast of the
Gaza Strip will be divided into three Maritime Activity Zones,

K, L, and M as shown on map No. 6 attached to this Agreement,
and as detailed below:

(1) Zones K and M


(a) Zone K extends to 20 nautical miles in the sea from the
coast in the northern part of the sea of Gaza and 1.5
nautical miles wide southwards.


(b) Zone M extends to 20 nautical miles in the sea from the
coast, and one (1) nautical mile wide from the Egyptian
waters.


(c) Subject to the provisions of this paragraph, Zones K and
M will be closed areas, in which navigation will be
restricted to activity of the Israel Navy.


(2) Zone L


(a) Zone L bounded to the south by Zone M and to the north
by Zone K extends 20 nautical miles into the sea from

the coast.

(b) Zone L will be open for fishing, recreation and economic
activities, in accordance with the following provisions:

(i) Fishing boats will not exit Zone L into the open
sea and may have engines of up to a limit of 25 HP
for outboard motors and up to a maximum speed of

15 knots for inboard motors. The boats will
neither carry weapons nor ammunition nor will they
fish with the use of explosives.

(ii) Recreational boats will be permitted to sail up to
a distance of 3 nautical miles from the coast

unless, in special cases, otherwise agreed within
the Maritime Coordination and Cooperation Center
as referred to in paragraph 3 below. Recreational
boats may have engines up to a limit of 10
horsepower. Marine motor bikes and water jets will
neither be introduced into Zone L nor be operated
therein.

(iii) Foreign vessels entering Zone L will not approach

closer than 12 nautical miles from the coast
except as regards activities covered in paragraph
4 below.

b. General Rules of the Maritime Activity Zones

(1) The aforementioned fishing boats and recreational boats
and
their skippers sailing in Zone L shall carry licenses issued

by the Palestinian Authority, the format and standards of
which will be coordinated through the JSC.

(2) The boats shall have identification markings determined by
the Palestinian Authority. The Israeli authorities will be
notified through the JSC of these identification markings.

(3) Residents of Israeli settlements in the Gaza Strip fishing
in Zone L will carry Israeli licenses and vessel permits.

(4) As part of Israel's responsibilities for safety and security
within the three Maritime Activity Zones, Israel Navy
vessels may sail throughout these zones, as necessary and
without limitations, and may take any measures necessary
against vessels suspected of being used for terrorist
activities or for smuggling arms, ammunition, drugs, goods,
or for any other illegal activity. The Palestinian Police
will be notified of such actions, and the ensuing procedures
will be coordinated through the Maritime Coordination and
Cooperation Center.

2. The Palestinian Coastal Police


a. The Palestinian Coastal Police may function in Zone L, up to a
distance of 6 nautical miles from the coast. In special cases,

it may also exercise control over Palestinian fishing boats
fishing in Zone L in an additional area of 6 nautical miles, up
to the limit of 12 nautical miles from the coastline, after
clearance and coordination through the Maritime Coordination and
Cooperation Center.

b. The Palestinian Coastal Police shall have up to 8 boats with a
displacement of up to 30 tons. They will sail at a speed of up
to 20 knots.

c. The boats shall carry weapons of up to a 7.62 mm caliber.


d. Boats of the Palestinian Coastal Police may fly a Palestinian
flag, have police identification markings and shall operate
identification lights.

e. The Parties shall cooperate on all sea matters, including mutual
help at sea, and pollution and environmental issues.

f. The boats of the Palestinian Coastal Police will initially use
the Gaza Wharf

g. Boats belonging to Israelis are solely subject to the control,
authority and jurisdiction of Israel and the Israel Navy.

3. Maritime Coordination and Cooperation Center


a. A Maritime Coordination and Cooperation Center (hereinafter "the

MC") shall function as part of the JSC, to coordinate civil
maritime activities and coastal police affairs off the coast of
the Gaza Strip.

b. The MC shall function within the relevant DCO, and will
determine its own rules of procedure.

c. The MC shall function 24 hours a day.

d. The MC shall be staffed by members of the Israel Navy and the
Palestinian Coastal Police, each providing a liaison officer and
an assistant liaison officer.

e. A direct radio telephone link (hot line) shall be set up between
the Israel Navy vessels and the Palestinian Coastal Police
vessels.

f. The role of the MC is to coordinate:


(1) assistance between the Coastal Police and the Israel Navy as

may be necessary to deal with incidents arising at sea;

(2) Coastal Police training involving the use of firearms;


(3) joint activities between the Coastal Police and the Israel
Navy when pre-planning is operationally necessary;

(4) radio contact between Coastal Police and Israel Navy vessels
in the event that "hot line" communication between vessels
of the two sides was not established;

(5) search and rescue operations; and

(6) maritime activities related to an agreed port, when
established in the Gaza Strip.

4. Gaza Strip Port

a. Plans for the establishment of a port in the Gaza Strip in
accordance with the Declaration of Principles, its location, and
related matters of mutual interest and concern, as well as

licenses for vessels and crews sailing on international voyages
will be discussed and agreed upon between Israel and the
Palestinian Authority taking into consideration the provisions
of Article X of this Agreement. To this end a special committee
will be established by the two sides.

b. The Gaza Sea Port Authority referred to in the Declaration of
Principles, shall act on behalf of the Palestinian Authority in

accordance with the provisions of this Agreement.

c. Pending construction of a port, arrangements for entry and exit
of vessels, passengers and goods by sea, as well as licenses for
vessels and crews sailing on international voyages in transit to
the Gaza Strip and the Jericho Area, shall be through Israeli
ports in acordance with the relevant rules and regulations
applicable in Israel and in accordance with the provisions of
Annex IV .



Article XII

Security of the Airspace



1. Operation of aircraft for the use of the Palestinian Authority in
the Gaza Strip and the Jericho Area shall be initiallv as follows:


a. Two (2) transport helicopters for VIP transportation within and
between the Gaza Strip and the Jericho Area.

b. Four (4) up to twenty persons capacity fixed-wing transport
aircraft, for transporting persons between the Gaza Strip and
the Jericho Area.

2. Changes in the number, type and capacity of aircraft may be
discussed and agreed upon in a Joint Aviation Subcommittee
(hereinafter "the JAC") to be established within the JSC.

3. The Palestinian Authority may immediately establish and operate in
the Gaza Strip and the Jericho Area provisional airstrips for the

helicopters and fixed-wing aircraft referred to in subparagraphs 1.a
and 1.b above, in accordance with arrangements and modalities to be
discussed and agreed upon in the JAC.

4. All aviation activity or usage of the airspace by any aerial vehicle
in the Gaza Strip and the Jericho Area shall require prior approval
of Israel. It shall be subject to Israeli air traffic control
including, inter alia, monitoring and regulation of air routes as
well as relevant regulations and requirements to be implemented in
accordance with the Israel Aeronautical Information Publication, the
relevant parts of which will be issued after consultation with the
Palestinian Authority.

5. Aircraft taking off from, and landing in the Gaza Strip and the
Jericho Area shall be registered and licensed in Israel or in other

states members of ICAO. Air crews of such aircraft shall be licensed
in Israel or in such other states, provided that such licenses have
been approved and recommended by the Palestinian Authority and
validated by Israel.

6. Aircraft referred to in this Article shall not carry firearms,
ammunition, explosives or weapons systems, unless otherwise approved
by both sides. Special arrangements for armed guards escorting
high-ranking officials, will be agreed upon in the JAC.

7. The location of navigational aids and other aviation equipment will
be approved by Israel through the JAC.

8. a. The Palestinian Authority shall ensure that only the aviation
activity in accordance with this Agreement will take place in
the Gaza Strip and the Jericho Area.

b. Further powers and responsibilities may be transferred to the
Palestinian Authority through the JAC.


c. The Palestinian Authority may establish a Palestinian Civil
Aviation Department to act on its behalf in accordance with the
provisions of this Article and of this Agreement.


9. a. Aviation activity by Israel will continue to be operated above
the Gaza Strip and the Jericho Area, with the same limitations
applicable in Israel regarding civil and military flights over
densely-populated areas.


b. Israel will notify the Palestinian Authority of emergency rescue
operations, searches and investigations of aerial accidents
carried out in the Gaza Strip and the Jericho Area. Searches and
investigations of civilian aircraft accidents will be conducted
by Israel with the participation of the Palestinian Authority.


10. Commercial, domestic and international air services to, from and
between the Gaza Strip and the Jericho Area may be operated
by
Palestinian, Israeli or foreign operators approved by both sides,
certified and licensed in Israel or in ICAO member states
maintaining bilateral aviation relations with Israel. Arrangements

for such air services, beginning with a service between Gaza and
Cairo using two (2) fixed-wing aircraft with capacity up to fifty
passengers each, as well as arrangements regarding the establishment
and operation of airports and air terminals in the Gaza Strip and

the Jericho Area, will be discussed and agreed upon by the two sides
in the JAC.

Any such international commercial air services will be carried out
in accordance with Israel's bilateral aviation agreements. The
implementation phase will be discussed and agreed upon in the JAC.






ANNEX II

PROTOCOL CONCERNING CIVIL AFFAIRS



Article I

Liaison and Coordination in Civil Matters


A. Joint Civil Affairs Coordination and Cooperation Committee

1. A Joint Civil Affairs Coordination and Cooperation Committee
(hereinafter "the CAC") is hereby established.


2. The functions of the CAC are to coordinate between the
Palestinian Authority on one hand, and Israel and the Civil
Administration that shall continue to function in the rest of
the West Bank on the other hand, concerning the following
day-to-day matters:


a. Civil matters, including issues concerning the transfer of
powers and responsibilities from the Israeli military
government and its Civil Administration to the Palestinian
Authority.


b. Matters arising with regard to roads, power lines and other
infrastructure which require coordination according to this
Agreement.


c. Questions regarding passage to and from the Gaza Strip and
the Jericho Area and safe passage between the Gaza Strip and
the Jericho Area, including crossing points and
international crossings.


d. Day-to-day contacts between the two sides as regards matters
such as employment permits, hospitalization, transportation
licensing, transfer of information, etc.


e. Joint projects, matters of mutual interest and other matters
requiring coordination and cooperation.


3. The CAC shall be comprised of an equal number of representatives
from Israel and from the Palestinian Authority, and shall
convene at least once a month unless otherwise agreed.


Each side may initiate the convening of a special meeting on
short notice.


4. The CAC shall determine by agreement its mode of procedure.

5. Matters of principle and policy not settled within the CAC shall
be passed on to the Joint Israeli-Palestinian Liaison Committee.


B. Joint Regional Civil Affairs Subcommittees

1. The CAC shall establish two Joint Regional Civil Affairs
Subcommittees (hereinafter "the Subcommittees") for the Gaza
Strip and the Jericho Area respectively.


2. Each Subcommittee shall deal with the day-to-day civil affairs
matters as detailed in paragraph A.2 above.


The Jericho Area Subcommittee shall also coordinate the
relations between the Palestinian Authority and the military
government and Civil Administration in the rest of the West
Bank.


3. Each Subcommittee may establish ad hoc working groups if and
when the need arises.


4. Each Subcommittee shall be comprised of an equal number of
representatives from Israel and from the Palestinian Authority
and shall convene no less than once every two weeks.


C. General

1. Means of communication shall be set up with a view to ensuring
efficient and direct contact 24 hours a day, in order to deal
with any urgent matter arising in the civil affairs field.


2. Each side shall inform the other of its representatives to each
committee prior to a meeting. Meetings of the CAC and its
subcommittees shall be organized and hosted by the two sides
alternately unless otherwise agreed.


3. The provisions detailed above shall not impede daily contacts
between representatives of Israel and of the Palestinian
Authority in all matters of mutual concern.





Article II

Transfer of Powers and Responsibilities of the
Civil Administration



A. 1. The transfer of powers and responsibilities from the Israeli
military government and its Civil Administration to the
Palestinian Authority shall be coordinated through the CAC and
implemented in accordance with the following arrangements in a
smooth, peaceful and orderly manner.


2. Preparations for the transfer of such powers and
responsibilities shall commence immediately upon the signing of
this Agreement, and shall be completed within 21 days.


a. The Israeli authorities shall provide all necessary
assistance to the Palestinian Authority, including access to
offices, registers, records, systems and equipment and all
necessary information, data and statistics required for the
transfer of powers and responsibilities.


b. Israel shall provide the Palestinian Authority with all the
details as described in subparagraph 38 below.


3. On the date fixed for the transfer of powers and
responsibilities, Israel shall transfer from the possession of
the Israeli military government and its Civil Administration to
the Palestinian Authority offices, budgetary allocations,
financial funds and accounts, equipment, registers, files,
computer programs and other movable property necessary for its
functioning.


B. All powers and responsibilities of the Civil Administration shall be
transferred to the Palestinian Authority in the Gaza Strip and the
Jericho Area, in accordance with the following provisions:


1. Interior Affairs:

This sphere includes, inter alia, municipal affairs, licensing
of newspapers and publications, censorship of films and plays
and appointment of Mukhtars. In the Gaza Strip, this sphere
shall also include fire fighting and Ottoman Societies.


2. Fisheries:

a. This sphere includes, inter alia, licensing of fishermen,
marine agriculture and vessels' permits.


b. Security restrictions are dealt with in Annex I, Article XI.


3. Surveying:

This sphere includes, inter alia, licensing of surveyors and
performing surveys in areas falling within the Palestinian
Authority's jurisdiction.


4. Statistics:

a. The transfer of powers and responsibilities in this sphere
includes inter alia transfer of research reports and
publications prepared by the Department of Statistics.


b. The application and validity of censuses which may be
conducted by the Palestinian Authority shall be subject to the
provisions of subparagraph 27.l below.


c. Methods of cooperation regarding the collection of data on
the movement of goods, services and labor between Israel and the
Gaza Strip and the Jericho Area is dealt with in Annex IV.


5. Comptrol

6. Civil Administration Employees:

The Palestinian Authority assures that it shall keep employing
the present Palestinian Civil Administration employees in the
Gaza Strip and the Jericho Area and shall maintain their rights.






Annex III

PROTOCOL CONCERNING LEGAL MATTERS



Article I

Criminal Jurisdiction


1. The criminal jurisdiction of the Palestinian Authority covers all
offenses committed in the areas under its territorial jurisdiction
(hereinafter, for the purposes of this Annex, "the Territory")
subject to the provisions of this Article.


2. Israel has sole criminal jurisdiction over the following offenses:

a. offenses committed in the Settlements and the Military
Installation Area subject to the provisions of this Annex; and


b. offenses committed in the Territory by Israelis.

3. In exercising their criminal jurisdiction, each side shall have the
power, inter alia, to investigate, arrest, bring to trial and punish
offenders.


4. In addition, and without derogating from the territorial
jurisdiction of the Palestinian Authority, Israel has the power to
arrest and to keep in custody individuals suspected of having
committed offenses which fall within Israeli criminal jurisdiction
as noted in paragraphs 2 and 7 of this Article, who are present in
the Territory, in the following cases:


a. The individual is an Israeli, in accordance with Article II of
this Annex; or


b. (1) The individual is a non-Israeli suspected of having just
committed an offense in a place where Israeli authorities
exercise their security functions in accordance with Annex
I, and is arrested in the vicinity in which the offense was
committed. The arrest shall be with a view to transferring
the suspect, together with all evidence, to the Palestinian
Police at the earliest opportunity.


(2) In the event that such an individual is suspected of having
committed an offense against Israel or Israelis, and there
is a need for further legal proceedings with respect to that
individual, Israel may retain him or her in custody and the
question of the appropriate forum for prosecuting such a
suspect shall be dealt with by the Legal Committee on a
case-by-case basis.


5. In the case of an offense committed in the Territory by a
non-Israeli against Israel or an Israeli, the Palestinian Authority
shall take measures to investigate and prosecute the case, and shall
report to Israel on the result of the investigation and any legal
proceedings.


6. a. Tourists in transit to or from Israel through the Gaza Strip or
the Jericho Area, who are present on the Lateral Roads or on the
main North-South road crossing the Jericho Area (Route No. 90),
may be arrested and questioned only by the Israeli authorities
which shall notify the Palestinian Authority. Where the Israeli
authorities conclude that an offense under the prevailing law
has been committed, and that further legal proceedings in
respect of the tourist are required, such proceedings shall be
taken by the Palestinian Authority.


b. Where such a tourist present outside these areas is detained or
arrested by the Palestinian Authority, it shall notify the
Israeli authorities immediately and shall enable them at the
earliest opportunity to meet the detainee and to provide any
necessary assistance, including consular notification, requested
by the detainee.


7. Nothing in this Article shall derogate from Israel's criminal
jurisdiction in accordance with its domestic laws over offenses
committed outside Israel (including in the Territory) against Israel
or an Israeli with due regard to the principle that no person can be
tried twice for the same offense. The exercise of such jurisdiction
shall be subject to the provisions of this Annex and without
prejudice to the criminal jurisdiction of the Palestinian Authority.




Article II

Legal Assistance in Criminal Matters


1. General

a. Israel and the Palestinian Authority shall cooperate and provide
each other with legal assistance in criminal matters. Such
cooperation shall include the arrangements detailed in this
Article.


b. For the purpose of this Article, "Israeli military forces" may
include Israel Police and other Israeli security forces.


c. Documents served by one Party in the territory under the
responsibility of the other, shall be accompanied by a certified
translation into the official language of the other Party.


2. Cooperation in Criminal Matters

a. The Israel Police and the Palestinian Police shall cooperate in
the conduct of investigations. Subject to detailed arrangements
to be agreed upon, such cooperation shall include the exchange
of information, records and fingerprints of criminal suspects,
vehicle ownership registration records, etc.


b. Where an offense is committed in the Territory by an Israeli
acting jointly with an individual under Palestinian personal
jurisdiction, the Israeli military forces and the Palestinian
Police will cooperate in conducting an investigation.


c. The Palestinian authorities shall not arrest or detain Israelis
or place them in custody. Israelis can identify themselves by
presenting Israeli documentation.


However, where an Israeli commits a crime against a person or
property in the Territory the Palestinian Police upon arrival at
the scene of the offense shall immediately notify the Israeli
authorities through the relevant DCO. Until the arrival of the
Israeli military forces the Palestinian Police may, if
necessary, detain the suspect in place while ensuring his
protection and the protection of all those involved and shall
prevent interference with the scene of the offense, collect the
necessary evidence and conduct preliminary questioning.


d. Without derogating from the jurisdiction of the Palestinian
Authority over property located or transported within the
Territory, where the property is being transported or carried by
an Israeli, the following procedure shall apply: The Palestinian
authorities have the power to take any measures necessary in
relation to Israeli vehicles or personal belongings where such
vehicle or belongings have been used in commission of a crime
and present an immediate danger to public safety or health. When
such measures are taken the Palestinian authorities shall
immediately notify the Israeli authorities through the relevant
DCO, and shall continue to take the necessary measures until
their arrival.


3. a. When an Israeli is suspected of committing an offense and is
present in the Territory, the Israeli military forces shall be
able to arrest, search and detain the suspect as required, in
the presence of and with the assistance of the Palestinian
Police.


b. When an Israeli commits an offense and is present in the Yellow
Areas or on the Lateral Roads and their adjacent sides as
defined in Annex I, the Israeli military forces may, without
derogating from the territorial jurisdiction of the Palestinian
Authority, arrest, search and detain the offender and shall
notify the Palestinian Police immediately, provide it with all
necessary information, and coordinate wherever possible.


4. When an offense is committed inside a Settlement, and all those
involved are Palestinians of the Gaza Strip or the Jericho Area or
their visitors, the Israeli military forces shall notify the
Palestinian Police immediately and shall hand over the offender and
the collected evidence to the Palestinian Police unless the offense
is security- related.


5. Restraining Orders

Each side shall execute orders issued by the competent organ of the
other side restraining a person under the jurisdiction of that side
from travelling abroad.


6. Summons and Questioning of Witnesses

a. Where the statement of a witness who is an Israeli or other
person present in Israel is required for a Palestinian
investigation, the statement shall be taken by the Israel Police
in the presence of a Palestinian Police officer in an Israeli
facility at an agreed location.


b. Where the statement of a non-Israeli witness present in the
Territory is required for an Israeli investigation, the
statement shall be taken by the Palestinian Police in the
presence of an Israeli police officer in a Palestinian facility
at an agreed location.


c. In exceptional cases, each side may take a statement requested
by the other side itself, without the presence of the requesting
side.


7. Transfer of Suspects and Defendants

a. Where a non-Israeli suspected of, charged with or convicted of
an offense that falls within Palestinian criminal jurisdiction
is present in Israel, the Palestinian Authority may request
Israel to arrest and transfer the individual to the Palestinian
Authority.


b. Where an individual suspected of, charged with or convicted of
an offense that falls within Israeli criminal jurisdiction is
present in the Territory, Israel may request the Palestinian
Authority to arrest and transfer the individual to Israel.


c. Requests under subparagraphs a. and b. above shall specify the
grounds for the request and shall be supported by an arrest
warrant issued by a competent court.


d. Where the request is for the transfer of a suspect who is not a
Palestinian requested by the Palestinian Authority:


(1) the arrest warrant shall only be issued pursuant to an
application made by or on behalf of the Attorney-General,
confirming that there is reasonable evidentiary basis that
the offense was committed by the suspect;


(2) the offense must be punishable by not less than 7 years'
imprisonment under the law of the requesting side.


e. (1) Individuals suspected of offenses punishable by less than 7
years' imprisonment shall be interrogated by the
investigating side in a facility of the other side or at an
agreed location.


(2) Interrogation shall take place in the presence of a police
officer of the other side.


(3) Upon the request of the investigating side the other side
may detain the suspect in custody pending and during the
questioning.


(4) Where the presence of the suspect is required for an
objective reason such as confronting witnesses and
identification of site, the suspect shall be transferred for
that purpose only.


f. (1) Both sides, upon receipt of a request in accordance with
this Article, shall effect the arrest and transfer
requested.


(2) If the individual requested is detained in custody or is
serving a prison sentence, the side receiving the request
may delay the transfer to the requesting side for the
duration of the detention or imprisonment.


g. No person shall be transferred in respect of an offense
punishable by capital punishment unless the requesting side
undertakes that capital punishment shall not be imposed in the
case.


h. (1) Both sides shall take all necessary measures to ensure that
the treatment of individuals transferred under this Article
complies with the applicable legal arrangements in Israel
and in the Territory and with internationally- accepted
norms of human rights regarding criminal investigations.


(2) Suspects transferred under this paragraph shall have the
right to be assisted during the investigation period by an
advocate of their own choice.


i. Each side may, upon the request of the other side, detain, for
no more than seven days, an individual in respect of whom a
request for arrest and transfer is to be made, pending the
submission of such a request.


j. The transfer of foreigners by Israel to the Palestinian
Authority under this Article shall be subject to the applicable
conventions to which Israel is a party and in coordination with
the foreigner's state of origin.


k. Both sides may agree that an individual convicted in the courts
of one side shall serve his sentence in a prison of the other
side, subject to arrangements and conditions to be agreed
between the sides.


8. Assistance in the Execution of Court Orders for the Purposes of
Investigation


a. Israel and the Palestinian Authority shall execute orders issued
by each others' courts for the purposes of investigations (e.g.,
search warrants, orders for the production of documents and
seizure orders), subject to the provisions of local law.


b. Where, for the purposes of an investigation, Israel or the
Palestinian Authority requires that tests or examinations (such
as fingerprinting or blood analysis) be effected in relation to
an item situated in territory under the responsibility of the
other side, that side shall effect the tests or examinations
required and transfer the results to the side conducting the
investigation. Where these results are not sufficient for the
purposes of the investigation, arrangements shall be made for
the transfer of the item to the side conducting the
investigation.


9. Legal Assistance in the Conduct of Judicial Proceedings

a. Summons and subpoenas issued by an Israeli court in respect of
defendants and witnesses present in the Territory, shall be
effected through the Palestinian Authority which shall be
responsible for the service of summons, and the execution of
subpoenas by the Palestinian Police. Subpoenas issued in respect
of an Israeli defendant or witness shall be executed by the
Israeli military forces in the presence of and with the
assistance of the Palestinian Police.


b. Summons or subpoenas issued by a Palestinian court in respect of
defendants and witnesses present in Israel shall be effected
through the Israel Police who shall be responsible for the
service of summons and the execution of subpoenas.


c. Where the evidence of an Israeli witness is required in
connection with proceedings conducted by a Palestinian court,
the evidence of the witness shall be taken at a Palestinian
court situated at an agreed location close to one of the
crossing points, and the witness shall be accompanied by
representatives of the Israeli military forces together with the
Palestinian Police.


d. Where the evidence of a witness is required in connection with
proceedings conducted by a court of one side, such a request
will be notified to the authorities of the other side to summon
the witness.




Article III

Civil Jurisdiction


1. The Palestinian courts and judicial authorities have jurisdiction in
all civil matters, subject to this Agreement.


2. Israelis conducting commercial activity in the Territory are subject
to the prevailing civil law in the Territory relating to that
activity.


Nevertheless, any enforcement of judicial and administrative
judgments and orders issued against Israelis and their property
shall be effected by Israel. Israel undertakes to execute such
judgments and orders within a reasonable time.


3. The Palestinian courts and judicial authorities have no jurisdiction
over civil actions in which an Israeli is a party, except for the
following cases:


a. the subject matter of the action is an ongoing Israeli business
situated in the Territory (the registration of an Israeli
company as a foreign company in the Territory being evidence of
the fact that it has an ongoing business situated in the
Territory);


b. the subject matter of the action is real property located in the
Territory;


c. the Israeli party is a defendant in the action and has consented
to such jurisdiction by notice in writing to the Palestinian
court or judicial authority;


d. the Israeli party is a defendant in an action the subject matter
of which is a written agreement, and the Israeli party has
consented to such jurisdiction by a specific provision in this
agreement;


e. the Israeli party is a plaintiff who has filed an action in the
Territory. If the defendant in the action is an Israeli, his
consent to such jurisdiction in accordance with subparagraphs c.
or d. above shall be required; or


f. actions concerning other matters as agreed between the Parties.

4. The jurisdiction of the Palestinian courts and judicial authorities
does not cover actions against the State of Israel including its
statutory entities, organs and agents.




Article IV

Legal Assistance in Civil Matters


1. Service of Legal Documents Israel and the Palestinian Authority will
be responsible, in the areas under their respective territorial
responsibility, for the service of legal documents, including
subpoenas, issued by the judicial organs under the responsibility of
the other Party.


2. Interim Orders

a. Interim orders (e.g., temporary orders of attachment, the
appointment of a receiver, restraining orders) issued by
judicial organs under the responsibility of either Party will
not have effect in the areas under the territorial
responsibility of the other Party.


b. Judicial organs under the responsibility of both Parties will be
authorized to issue interim orders which shall apply in the
areas under their territorial responsibility, even in cases in
which the primary action was filed with the judicial organs
under the responsibility of the other Party.


c. The judicial organs of each side may issue orders restraining an
individual from travelling abroad when the order relates to a
matter being tried by that organ, subject to the relevant
provisions of the domestic laws.


3. Taking of evidence

Israel and the Palestinian Authority will make arrangements for
taking evidence from witnesses, when necessary, within the areas
under their territorial responsibility, when such evidence is sought
in connection with proceedings conducted by the judicial organs
under the responsibility of the other side.


4. Enforcement of judgements

a. Israel and the Palestinian Authority will enforce judgements
rendered by the judicial organs under the responsibility of the
other Party, provided that the judicial organ concerned had the
jurisdiction to render the judgement and further provided that
the enforcement is not contrary to public policy. The execution
office under the responsibility of Israel and the Palestinian
Authority shall execute such judgements as if rendered by their
own judicial organs.


b. In executing any judgement against Israelis the Palestinian
execution offices will be authorized to issue orders (e.g.,
attachments, receivership, eviction) against Israeli property
within the Territory.


c. Orders against the freedom of Israelis (e.g., imprisonment
orders, restraining orders) shall only be issued by Israeli
execution offices.


d. All orders issued by execution offices against Israelis or
Israeli property within the Territory will be executed by the
Israel Police with the assistance of the Palestinian Authority,
or where the Israel Police notifies the Palestinian Authority
that it has no objection, by the Palestinian Police.



PROTOCOL ON ECONOMIC RELATIONS
between
the Government of the State of Israel
and
the P.L.O., representing the Palestinian people



PREAMBLE


The two parties view the economic domain as one of the cornerstone in
their mutual relations with a view to enhance their interest in the
achievement of a just, lasting and comprehensive peace. Both parties
shall cooperate in this field in order to establish a sound economic
base for these relations, which will be governed in various economic
spheres by the principles of mutual respect of each other's economic
interests, reciprocity, equity and fairness.


This protocol lays the groundwork for strengthening the economic base
of the Palestinian side and for exercising its right of economic
decision making in accordance with its own development plan and
priorities. The two parties recognise each other's economic ties with
other markets and the need to create a better economic environment
for their peoples and individuals.



Article I

FRAMEWORK AND SCOPE OF THIS PROTOCOL


1. This protocol establishes the contractual agreement that will
govern the economic relations between the two sides and will
cover the West Bank and the Gaza Strip during the interim period.
The implementation will be according to the stages envisaged in
the Declaration of Principles on Interim Self Government
Arrangements signed in Washington D.C. on September 13, 1993 and
the Agreed Minutes thereto. It will therefore begin in the Gaza
Strip and the Jericho Area and at a later stage will also apply
to the rest of the West Bank, according to the provisions of the
Interim Agreement and to any other agreed arrangements between
the two sides.


2. This Protocol, including its Appendixes, will be incorporated
into the Agreement on the Gaza Strip and the Jericho Area (in
this Protocol - the Agreement), will be an integral part thereof
and interpreted accordingly. This paragraph refers solely to the
Gaza Strip and the Jericho Area.


3. This Protocol will come into force upon the signing of the
Agreement.


4. For the purpose of this Protocol, the term "Areas" means the
areas under the jurisdiction of the Palestinian Authority,
according to the provisions of the Agreement regarding
territorial jurisdiction.
The Palestinian Jurisdiction in the subsequent agreements could
cover areas, spheres or functions according to the Interim
Agreement. Therefore, for the purpose of this Protocol, whenever
applied, the term "Areas" shall be interpreted to mean functions
and spheres also, as the case may be, with the necessary
adjustments.



Article II

THE JOINT ECONOMIC COMMITTEE


1. Both parties will establish a Palestinian-Israeli Joint Economic
Committee (hereinafter - the JEC) to follow up the implementation
of this Protocol and to decide on problems related to it that may
arise from time to time. Each side may request the review of any
issue related to this Agreement by the JEC.


2. The JEC will serve as the continuing committee for economic
cooperation envisaged in Annex III of the Declaration of
Principles.


3. The JEC will consist of an equal number of members from each side
and may establish sub-committees specified in this Protocol.


A sub-committee may include experts as necessary.

4. The JEC and its sub-committees shall reach their decisions by
agreement and shall determine their rules of procedure and
operation, including the frequency and place or places of their
meetings.



Article III

IMPORT TAXES AND IMPORT POLICY


1. The import and customs policies of both sides will be according
to the principles and arrangements detailed in this Article.


2. a. The Palestinian Authority will have all powers and
responsibilities in the sphere of import and customs policy
and procedures with regard to the following:


(1) Goods on List Al, attached hereto as Appendix I
locally-produced in Jordan and in Egypt particularly and
in the other Arab countries, which the Palestinians will
be able to import in quantities agreed upon by the two
sides up to the Palestinian market needs as estimated
according to para 3 below.


(2) Goods on List A2, attached hereto as Appendix II, from the
Arab, Islamic and other countries, which the Palestinians
will be able to import in quantities agreed upon by the
two sides up to the Palestinian market needs as estimated
according to para 3 below.


b. The import policy of the Palestinian Authority for Lists Al
and A2 will include independently determining and changing
from time to time the rates of customs, purchase tax, levies,
excises and other charges, the regulation of licensing
requirements and procedures and of standard requirements. The
valuation for custom purposes will be based upon the GATT 1994
agreement as of the date it will be introduced in Israel, and
until then - on the Brussels Definition of Valuation (BDV)
system. The classification of goods will be based on the
principles of "the Harmonized Commodity Description and Coding
System". Concerning imports referred to in Article VII of this
Protocol (Agriculture), the provisions of that Article will
apply.


3. For the purposes of para 2(a) above, the Palestinian market needs
for 1994 will be estimated by a sub-committee of experts. These
estimates will be based on the best available data regarding past
consumption, production, investment and external trade of the
Areas. The sub-committee will submit its estimate within three
months from the signing of the Agreement. These estimates will be
reviewed and updated every six months by the sub-committee, on
the basis of the best data available regarding the latest period
for which relevant data are available, taking into consideration
all relevant economic and social indicators. Pending an agreement
on the Palestinian market needs, the previous period's estimates
adjusted for population growth and rise in per-capita GNP in the
previous period, will serve as provisional estimates.


4. The Palestinian Authority will have all powers and
responsibilities to independently determine and change from time
to time the rates of customs, purchase taxes; levies, excises and
other charges on the goods on List B, attached hereto as Appendix
III, of basic food items and other goods for the Palestinian
economic development program, imported by the Palestinians to the
Areas.


5. a. With respect to all goods not specified in Lists Al, A2 and B,
and with respect to quantities exceeding those determined in
accordance with paras 2(a) & 3 above (hereinafter - the
Quantities), the Israeli rates of customs, purchase tax,
levies, excises and other charges, prevailing at the date of
signing of the Agreement, as changed from time to time, shall
serve as the minimum basis for the Palestinian Authority. The
Palestinian Authority may decide on any upward changes in the
rates on these goods and exceeding quantities when imported by
the Palestinians to the Areas.


b. With respect to all goods not specified in Lists A1 and A2,
and with respect to quantities exceeding the Quantities,
Israel and the Palestinian Authority will employ for all
imports the same system of importation, as stipulated in para
10 below, including inter alia standards, licensing, country
of origin, valuation for customs purposes etc.


6. Each side will notify the other side immediately of changes made
in rates and in other matters of import policy, regulations and
procedures, determined by it within its respective powers and
responsibilities as detailed in this Article. With regard to
changes which do not require immediate application upon decision,
there will be a process of advance notifications and mutual
consultations which will take into consideration all aspects and
economic implications.


7. The Palestinian Authority will levy VAT at one rate on both
locally produced goods and services and on imports by the
Palestinians (whether covered by the three Lists mentioned above
or not), and may fix it at the level of 15% to 16%.


8. Goods imported from Jordan, Egypt and other Arab countries
according to para 2(a)(1) above (List A1) will comply with rules
of origin agreed upon by a joint sub-committee within three
months of the date of the signing of the Agreement. Pending an
agreement, goods will be considered to have been "locally
produced" in any of those countries if they conform with all the
following:


a. (i) They have been wholly grown, produced, or manufactured in
that country, or have been substantially transformed there
into new or different goods, having a new name, character, or
use, distinct from the goods or materials from which they were
so transformed;


(ii) They have been imported directly from the said country;

(iii) The value or the costs of the materials produced in that
country, plus the direct processing costs in it, do not fall
short of 30 percent of the export value of the goods. This
rate may be reviewed by the joint committee mentioned in para
16 a year after the signing of the Agreement.


(iv) The goods are accompanied by an internationally
recognized certificate of origin;


(v) No goods will be deemed as substantially new or different
goods, and no material will be eligible for inclusion as
domestic content, by virtue of having merely undergone simple
combining or packaging, or dilution with water or other
substances, which do not materially alter the characteristics
of the said goods.


9. Each side will issue import licences to its own importers,
subject to the principles of this Article and will be responsible
for the implementation of the licensing requirements and
procedures prevailing at the time of the issuance of the
licenses.
Mutual arrangements will be made for the exchange of information
relevant to licensing matters.


10. Except for the goods on Lists A1 and A2 and their Quantities - in
which the Palestinian Authority has all powers and
responsibilities, both sides will maintain the same import policy
(except for rates of import taxes and other charges for goods in
List B) and regulations including classification, valuation and
other customs procedures, which are based on the principles
governing international codes, and the same policies of import
licensing and of standards for imported goods, all as applied by
Israel with respect to its importation. Israel may from time to
time introduce changes in any of the above, provided that changes
in standard requirements will not constitute a non-tariff-barrier
and will be based on considerations of health, safety and the
protection of the environment in conformity with Article 2.2. of
the Agreement on Technical Barriers to trade of the Final Act of
the Uruguay Round of Trade Negotiations.
Israel will give the Palestinian Authority prior notice of any

such changes, and the provisions of para 6 above will apply.

11. a. The Palestinian Authority will determine its own rates of
customs and purchase tax on motor vehicles imported as such,
to be registered with the Palestinian Authority. The vehicle
standards will be those applied at the date of the signing of
the Agreement as changed according to para 10 above.
However, the Palestinian Authority may request, through the
sub-committee on transportation, that in special cases
different standards will apply.
Used motor vehicles will be imported only if they are
passenger cars or dual-purpose passenger cars of a model of
no more than three years prior to the importation year. The
sub-committee on transportation will determine the procedures
for testing and confirming that such used cars comply with the
standards' requirements for that model year.
The issue of importing commercial vehicles of a model prior to
the importation year will be discussed in the joint
sub-committee mentioned in para 16 below.


b. Each side may determine the terms and conditions for the
transfer of motor vehicles registered in the other side to the
ownership or use of a resident of its own side, including the
payment of the difference of import taxes, if any, and the
vehicle having been tested and found compatible with the
standards required at that time by its own registration
administration, and may prohibit transfer of vehicles.


12. a. Jordanian standards, as specified in the attached Appendix I,
will be acceptable in importing petroleum products into the
Areas, once they meet the average of the standards existing in
the European Union countries, or the USA standards, which
parameters have been set at the values prescribed for the
geographical conditions of Israel, the Gaza Strip and the West
Bank.
Cases of petroleum products which do not meet these
specifications will be referred to a joint experts' committee
for a suitable solution. The committee may mutually decide to
accept different standards for the importation of gasoline
which meet the Jordanian standards even though, in some of
their parameters, they do not meet the European Community or
USA standards. The committee will give its decision within six
months.
Pending the committee's decision, and for not longer than six
months of the signing of the Agreement, the Palestinian

Authority may import to the Areas, gasoline for the
Palestinian market in the Areas, according to the needs of
this market, provided that:


(1) this gasoline is marked in a distinctive colour to
differentiate it from the gasoline marketed in Israel; and


(2) the Palestinian Authority will take all the necessary
steps to ensure that this gasoline is not marketed in
Israel.


b. The difference in the final price of gasoline to consumers in
Israel and to consumers in the Areas, will not exceed 15% of
the official final consumer price in Israel. The Palestinian
Authority has the right to determine the prices of petroleum
products, other than gasoline, for consumption in the Areas.


c. If Egyptian gasoline standards will comply with the conditions
of sub-para (a) above, the importation of Egyptian gasoline
will also be allowed.


13. In addition to the points of exit and entry designated according
to the Article regarding Passages in Annex I of the Agreement for
the purpose of export and import of goods, the Palestinian side
has the right to use all points of exit and entry in Israel
designated for that purpose. The import and export of the
Palestinians through the points of exit and entry in Israel will
be given equal trade and economic treatment.


14. In the entry points of the Jordan River and the Gaza Strip:

a. Freight shipment

The Palestinian Authority will have full responsibility and
powers in the Palestinian customs points (freight-area) for
the implementation of the agreed upon customs and importation
policy as specified in this protocol, including the inspection
and the collection of taxes and other charges, when due.


Israeli customs officials will be present and will receive
from the Palestinian customs officials a copy of the necessary
relevant documents related to the specific shipment and will
be entitled to ask for inspection in their presence of both
goods and tax collection.


The Palestinian customs officials will be responsible for the
handling of the customs procedure including the inspection and
collection of due taxes.


In case of disagreement on the clearance of any shipment
according to this Article, the shipment will be delayed for
inspection for a maximum period of 48 hours during which a
joint sub-committee will resolve the issue on the basis of the
relevant provisions of this Article. The shipment will be
released only upon the sub-committee's decision.


b. Passengers customs lane

Each side will administer its own passengers customs
procedures, including inspection and tax collection. The
inspection and collection of taxes due in the Palestinian
customs lane will be conducted by customs officials of the
Palestinian Authority.


Israeli customs officials will be invisibly present in the
Palestinian customs lane and entitled to request inspection of
goods and collection of taxes when due. In the case of
suspicion, the inspection will be carried out by the
Palestinian official in a separate room in the presence of the
Israeli customs official.


15. The clearance of revenues from all import taxes and levies,
between Israel and the Palestinian Authority, will be based on
the principle of the place of final destination. In addition,
these tax revenues will be allocated to the Palestinian Authority
even if the importation was carried out by Israeli importers when
the final destination explicitly stated in the import
documentation is a corporation registered by the Palestinian
Authority and conducting business activity in the Areas. This
revenue clearance will be effected within six working days from
the day of collection of the said taxes and levies.


16. The Joint Economic Committee or a sub-committee established by it
for the purposes of this Article will deal inter alia with the
following:


1) Palestinian proposals for addition of items to Lists A1, A2
and B. Proposals for changes in rates and in import
procedures, classification, standards and licensing
requirements for all other imports,


2) Estimate the Palestinian market needs, as mentioned in para 3
above;


3) Receive notifications of changes and conduct consultations, as
mentioned in para 6 above;


4) Agree upon the rules of origin as mentioned in para 8 above,
and review their implementation;


5) Co-ordinate the exchange of information relevant to licensing
matters as mentioned in para 9 above.


6) Discuss and review any other matters concerning the
implementation of this Article and resolve problems arising
therefrom.


17. The Palestinian Authority will have the right to exempt the
Palestinian returnees who will be granted permanent residency in
the Areas from import taxes on personal belongings including
house appliances and passenger cars as long as they are for
personal use.


18. The Palestinian Authority will develop its system for temporary
entry of needed machines and vehicles used for the Palestinian
Authority and the Palestinian economic development plan.


Concerning other machines and equipment, not included in Lists
A1, A2 and B, the temporary entry will be part of the import
policy as agreed in para 10 above, until the joint sub-committee
mentioned in para 16 decides upon a new system proposed by the
Palestinian Authority. The temporary entry will be coordinated
through the joint sub-committee.


19. Donations in kind to the Palestinian Authority will be exempted
from customs and other import taxes if destined and used for
defined development projects or non-commercial humanitarian
purposes.
The Palestinian Authority will be responsible exclusively for
planning and management of the donors' assistance to the
Palestinian people. The Joint Economic Committee will discuss
issues pertaining to the relations between the provisions in this
Article and the implementation of the principles in the above
paragraph.



Article IV

MONETARY AND FINANCIAL ISSUES


1. The Palestinian Authority will establish a Monetary Authority
(PMA) in the Areas.
The PMA will have the powers and responsibilities for the
regulation and implementation of the monetary policies within the
functions described in this Article.


2. The PMA will act as the Palestinian Authority's official economic
and financial advisor.


3. The PMA will act as the Palestinian Authority's and the public
sector entities' sole financial agent, locally and
internationally.


4. The foreign currency reserves (including gold) of the Palestinian
Authority and all Palestinian public sector entities will be
deposited solely with the PMA and managed by it.


5. The PMA will act as the lender of last resort for the banking
system in the Areas.


6. The PMA will authorize foreign exchange dealers in the Areas and
will exercise control (regulation and supervision) over foreign
exchange transactions within the Areas and with the rest of the
world.


7. a. The PMA will have a banking supervision department that will
be responsible for the proper functioning, stability, solvency
and liquidity of the banks operating in the Areas.


b. The banking supervision department will predicate its
supervision on the international principles and standards
reflected in international conventions and especially on the
principles of the "Basle Committee".


c. The supervision department will be charged with the general
supervision of every such bank, including:
-The regulation of all kinds of banking activities, including
their foreign activities;
-The licensing of banks formed locally and of branches,
subsidiaries, joint ventures and representative offices of
foreign banks and the approval of controlling shareholders;
-The supervision and inspection of banks.


8. The PMA will relicense each of the five branches of the Israeli
banks operating at present in the Gaza Strip and the West Bank,
as soon as its location or the authorities regarding it come
under the jurisdiction of the Palestinian Authority. These
branches will be required to comply with the general rules and
regulations of the PMA concerning foreign banks, based on the
"Basle Concordat". Para I0 d, e, and f below will apply to these
branches.


9. a. Any other Israeli bank wishing to open a branch or a
subsidiary in the Areas will apply for a license to the PMA
and will be treated equally to other foreign banks, provided
that the same will apply to the Palestinian banks wishing to
open a branch or a subsidiary in Israel.


b. Granting of a license by both authorities will be subject to
the following arrangements based on the "Basle Concordat"
valid on the date of signing of the Agreement and to the host
authority's prevailing general rules and regulations
concerning opening of branches and subsidiaries of foreign
banks.


In this para 10 "host authority" and "home authority" apply
only to the Bank of Israel (BOI) and the PMA.


c. A bank wishing to open a branch or establish a subsidiary will
apply to the host authority, having first obtained the
approval of its home authority. The host authority will notify
the home authority of the terms of the license, and will give
its final approval unless the home authority objects.


d. The home authority will be responsible for the consolidated
and comprehensive supervision of banks, inclusive of branches
and subsidiaries in the area under the jurisdiction of the
host authority. However, the distribution of supervision
responsibilities between the home and the host authorities
concerning subsidiaries will be according to the "Basle
Concordat".


e. The host authority will regularly examine the activities of
branches and subsidiaries in the area under its jurisdiction.
The home authority will have the right to conduct on site
examinations in the branches and subsidiaries in the host
area. However, the supervision responsibilities of the home
authority concerning subsidiaries will be according to the
"Basle Concordat".
Accordingly, each authority will transfer to the other
authority copies of its examination reports and any
information relevant to the solvency, stability and soundness
of the banks, their branches and subsidiaries.


f. The BOI and the PMA will establish a mechanism for cooperation
and for the exchange of information on issues of mutual
interest.


10. a. The New Israeli Sheqel (NIS) will be one of the circulating
currencies in the Areas and will legally serve there as means
of payment for all purposes including official transactions.
Any circulating currency, including the NIS, will be accepted
by the Palestinian Authority and by all its institutions,
local authorities and banks, when offered as a means of
payment for any transaction.


b. Both sides will continue to discuss, through the JEC, the
possibility of introducing mutually agreed Palestinian
currency or temporary alternative currency arrangements for
the Palestinian Authority.


11. a. The liquidity requirements on all deposits in banks operating
in the Areas will be determined and announced by the PMA.


b. Banks in the Areas will accept NIS deposits. The liquidity
requirements on the various kinds of NIS deposits (or deposit
linked to the NIS) in banks operating in the Areas will not be
less than 4% to 8%, according to the type of deposits. Changes
of over 1% in the liquidity requirements on NIS deposits (or
deposits linked to the NIS) in Israel will call for
corresponding changes in the above mentioned rates.


c. The supervision and inspection of the implementation of all
liquidity requirements will be carried out by the PMA.


d. The reserves and the liquid assets required according to this
paragraph will be deposited at the PMA according to rules and
regulations determined by it. Penalties for non compliance
with the liquidity requirements will be determined by the PMA.


12. The PMA will regulate and administer a discount window system and
the supply of temporary finance for banks operating in the Areas.


13. a. The PMA will establish or license a clearing house in order to
clear money orders between the banks operating in the Areas,
and with other clearing houses.


b. The clearing of money orders and transactions between banks
operating in the Areas and banks operating in Israel will be
done between the Israeli and the Palestinian clearing houses
on same working day basis, according to agreed arrangements.


14. Both sides will allow correspondential relations between each
others' banks.


15. The PMA will have the right to convert at the BOI excess NIS
received from banks operating in the Areas into foreign currency,
in which the BOI trades in the domestic inter-bank market, up to
the amounts determined per period, according to the arrangements
detailed in para 16 below.


16. a. The excess amount of NIS, due to balance of payments flows,
that the PMA will have the right to convert into foreign
currency, will be equal to:


(1) Estimates of all Israeli "imports" of goods and services
from the Areas, valued at market prices (inclusive of
taxes), which were paid for in NIS, less:
(i) the taxes collected by the Palestinian Authority on
all Israeli "imports" from the Areas and rebated to Israel
in NIS, and
(ii) the taxes collected by Israel on all Israeli
"imports" from the Areas and included in their market
value, and not rebated to the Palestinian Authority,
minus
(2) Estimates of all Israeli "exports" of goods and services
to the Areas, valued at market prices (inclusive of
taxes), which were paid for in NIS, less:
(i) the taxes collected by Israel on such "exports" and
rebated to the Palestinian Authority, and
(ii) the taxes collected by the Palestinian Authority on
such "exports" and included in their market value, and not
rebated to Israel;
plus

(3) The accumulated net amounts of foreign currency converted
previously into NIS by the PMA, as recorded in the BOI
Dealing Room.


b. The said flows and amounts will be calculated as of the date
of the signing of the Agreement.


Notes to para 16:

(i) The estimates of the said "exports and imports" of goods
and services will include inter alia labor services, NIS
expenditure of tourists and Israelis in the Areas and NIS
expenditure of Palestinians of the Areas in Israel.


(ii) Taxes and pension contributions on "imports" of labor
services, paid to "importing" side and rebated to the
"exporting" one, will not be included in the estimates of
the sums to be converted, as the "exports'" earnings of
labor services are recorded in the statistics inclusive
of them, although they do not accrue to the individuals
supplying them.


17. The PMA and the BOI will meet annually to discuss and determine
the annual amount of convertible NIS during the following
calendar year and will meet semi-annually to adjust the said
amount. The amounts determined annually and adjusted
semi-annually will be based on data and estimates regarding the
past and on forecasts for the following period, according to the
formula mentioned in para 16. The first meeting will be as soon
as possible within three months after the date of the signing of
the Agreement.


18. a. The exchange of foreign currency for NIS and vice-versa by the
PMA will be carried out through the BOI Dealing Room, at the
market exchange rates.


b. The BOI will not be obliged to convert in any single month
more than 1/5 of the semi-annual amount, as mentioned in para
17.


19. There will be no ceiling on the annual foreign currency
conversions by the PMA into NIS. However, in order to avoid
undesirable fluctuations in the foreign exchange market, monthly
ceilings of such conversions will be agreed upon in the annual
and semi-annual meetings referred to in para 17.


20. Banks in the Areas will convert NIS into other circulating
currencies and vice-versa.


21. The Palestinian Authority will have the authorities, powers and
responsibilities regarding the regulation and supervision of
capital activities in the Areas, including the licensing of
capital market institutions, finance companies and investment
funds.



Article V

DIRECT TAXATION


1. Israel and the Palestinian Authority will each determine and
regulate independently its own tax policy in matters of direct
taxation, including income tax on individuals and corporations,
property taxes, municipal taxes and fees.


2. Each tax administration will have the right to levy the direct
taxes generated by economic activities within its area.


3. Each tax administration may impose additional taxes on residents
within its area on (individuals and corporations) who conduct
economic activities in the other side's area.


4. Israel will transfer to the Palestinian Authority a sum equal to:

a. 75% of the income taxes collected from Palestinians from the
Gaza Strip and the Jericho Area employed in Israel.


b. The full amount of income taxes collected from Palestinians
from the Gaza Strip and Jericho Area employed in the
settlements.


5. The two sides will agree on a set of procedures that will address
all issues concerning double taxation.



Article VI

INDIRECT TAXES ON LOCAL PRODUCTION


1. The Israel and the Palestinian tax administrations will levy and
collect VAT and purchase taxes on local production, as well as
any other indirect taxes, in their respective areas.


2. The purchase tax rates within the jurisdiction of each tax
administration will be identical as regards locally produced and
imported goods.


3. The present Israeli VAT rate is 17%. The Palestinian VAT rate
will be 15% to 16%.


4. The Palestinian Authority will decide on the maximum annual
turnover for businesses under its jurisdiction to be exempt from
VAT, within an upper limit of 12,000 US $.


5. The VAT on purchases by businesses registered for VAT purposes
will accrue to the tax administration with which the respective
business is registered.


Businesses will register for VAT purposes with the tax
administration of the side of their residence, or on the side of
their ongoing operation.


There will be clearance of VAT revenues between the Israeli and
Palestinian VAT administrations on the following conditions:


a. The VAT clearance will apply to VAT on transactions between
businesses registered with the VAT administration of the side
in which they reside.


b. The following procedures will apply to clearance of VAT
revenues accruing from transactions by businesses registered
for VAT purposes:


(1) To be acceptable for clearance purposes, special invoices,
clearly marked for this purpose, will be used for
transactions between businesses registered with the
different sides.


(2) The invoices will be worded either in both Hebrew and
Arabic or in English and will be filled out in any of
these three languages, provided that the figures are
written in "Arabic" (not Hindi) numerals.


(3) For the purpose of tax rebates, such invoices will be
valid for six months from their date of issue.


(4) Representatives of the two sides will meet once a month,
on the 20th day of the month, to present each other with a
list of invoices submitted to them for tax rebate, for VAT
clearance. This list will include the following details
regarding each invoice:
(a) The number of the registered business issuing it;
(b) The name of the registered business issuing it;
(c) The number of the invoice;
(d) The date of issue;
(e) The amount of the invoice;
(f) The name of the recipient of the invoice.


(5) The clearance claims will be settled within 6 days from
the meeting, through a payment by the side with the net
balance of claims against it, to the other side.


(6) Each side will provide the other side, upon demand, with
invoices for verification purposes. Each tax
administration will be responsible for providing invoices
for verification purposes for 6 months after receiving
them.


(7) Each side will take the necessary measure to verify the
authenticity of the invoices presented to it for clearance
by the other side.


(8) Claims for VAT clearance which will not be found valid
will be deducted from the next clearance payment.


(9) Once an inter-connected computer system for tax rebates to
businesses and for VAT clearance between the two sides is
operational, it will replace the clearance procedures
specified in sub-paras (4) - (8).


(10) The two tax administrations will exchange lists of the
businesses registered with them and will provide each
other with the necessary documentation, if required, for
the verification of transactions.


(11) The two sides will establish a sub-committee which will
deal with the implementation arrangements regarding the
clearance of VAT revenues set above.


6. VAT paid by not-for-profit Palestinian organizations and
institutions, registered by the Palestinian Authority, on
transactions in Israel, will accrue to the Palestinian tax
administration. The clearance system set out in para 5 will apply
to these organizations and institutions.



Article VII

LABOR


1. Both sides will attempt to maintain the normality of movement of
labor between them, subject to each side's right to determine
from time to time the extent and conditions of the labor movement
into its area. If the normal movement is suspended temporarily by
either side, it will give the other side immediate notification,
and the other side may request that the matter be discussed in
the Joint Economic Committee.


The placement and employment of workers from one side in the area
of the other side will be through the employment service of the
other side and in accordance with the other sides' legislation.
The Palestinian side has the right to regulate the employment of
Palestinian labor in Israel through the Palestinian employment
service, and the Israeli Employment Service will cooperate and
coordinate in this regard.


2. a. Palestinians employed in Israel will be insured in the Israeli
social insurance system according to the National Insurance
Law for employment injuries that occur in Israel, bankruptcy
of employers and maternity leave allowance.


b. The National Insurance fees deducted from the wages for
maternity insurance will be reduced according to the reduced
scope of maternity insurance, and the equalization deductions
transferred to the Palestinian Authority, if levied, will be
increased accordingly.


c. Implementation procedures relating thereto will be agreed upon
between the Israeli National Insurance Institute and the
Palestinian Authority or the appropriate Palestinian social
insurance institution.


3. a. Israel will transfer to the Palestinian Authority, on a
monthly basis, the equalization deductions as defined by
Israeli legislation, if imposed and to the extent levied by
Israel. The sums so transferred will be used for social
benefits and health services, decided upon by the Palestinian
Authority, for Palestinians employed in Israel and for their
families.


The equalization deductions to be so transferred will be those
collected after the date of the signing of the Agreement from
wages of Palestinians employed in Israel and from their
employers.


These sums will not include

(1) Payments for health services in places of employment.

(2) 2/3 of the actual administrative costs in handling the
matters related to the Palestinians employed in Israel by
the Payments Section of the Israeli Employment Service.


4. Israel will transfer, on a monthly basis, to a relevant pension
insurance institution to be established by the Palestinian
Authority, pension insurance deductions collected after the
establishment of the above institution and the completion of the
documents mentioned in para 6.


These deductions will be collected from wages of Palestinians
employed in Israel and their employers, according to the relevant
rates set out in the applicable Israeli collective agreements.
2/3 of the actual administrative costs in handling these
deductions by the Israeli Employment Service will be deducted
from the sums transferred. The sums so transferred will be used
for providing pension insurance for these workers. Israel will
continue to be liable for pension rights of the Palestinian
employees in Israel, to the extent accumulated by Israel before
the entry into force of this para 4.


5. Upon the receipt of the deductions, the Palestinian Authority and
its relevant social institutions will assume full responsibility
in accordance with the Palestinian legislation and arrangements,
for pension rights and other social benefits of Palestinians
employed in Israel, that accrue from the transferred deductions
related to these rights and benefits. Consequently, Israel and
its relevant social institutions and the Israeli employers will
be released from, and will not be held liable for any obligations
and responsibilities concerning personal claims, rights and
benefits arising from these transferred deductions, or from the
provisions of paras 2-4 above.


6. Prior to the said transfers, the Palestinian Authority or its
relevant institutions, as the case may be, will provide Israel
with the documents required to give legal effect to their
aforesaid obligations, including mutually agreed implementation
procedures of the principles agreed upon in paras 3-5 above.


7. The above arrangements concerning equalization deductions and/or
pension deductions may be reviewed and changed by Israel if an
authorized court in Israel will determine that the deductions or
any part thereof must be paid to individuals, or used for
individual social benefits or insurance in Israel, or that it is
otherwise unlawful. In such a case the liability of the
Palestinian side will not exceed the actual transferred
deductions related to the case.


8. Israel will respect any agreement reached between the Palestinian
Authority, or an organization or trade-union representing the
Palestinians employed in Israel, and a representative
organization of employees or employers in Israel, concerning
contributions to such organization according to any collective
agreement.


9. a. The Palestinian Authority may integrate the existing health
insurance scheme for Palestinians employed in Israel and their
families in its health insurance services. As long as this
scheme continues, whether integrated or separately, Israel
will deduct from their wages the health insurance fees
("health stamp") and will transfer them to the Palestinian
Authority for this purpose.


b. The Palestinian Authority may integrate the existing health
insurance scheme for Palestinians who were employed in Israel
and are receiving pension payments through the Israeli
Employment Service, in its health insurance services. As long
as this scheme continues, whether integrated or separately,
Israel will deduct the necessary sum of health insurance fees
("health stamp") from the equalization payments and will
transfer them to the Palestinian Authority for this purpose.


10. The JEC will meet upon the request of either side and review the
implementation of this Article and other issues concerning labor,
social insurance and social rights.


11. Other deductions not mentioned above, if any, will be jointly
reviewed by the JEC. Any agreement between the two sides
concerning these deductions will be in addition to the above
provisions.


12. Palestinians employed in Israel will have the right to bring
disputes arising out of employee - employer relationships and
other issues before the Israeli Labor Courts, within these
courts' jurisdiction.


13. This Article governs the future labor relations between the two
sides and will not impair any labor rights prior to the date of
signing of the Agreement.



Article VIII

AGRICULTURE


1. There will be free movement of agricultural produce, free of
customs and import taxes, between the two sides, subject to the
following exceptions and arrangements.


2. The official veterinary and plant protection services of each
side will be responsible, within the limits of their respective
jurisdiction, for controlling animal health, animal products and
biological products, and plants and parts thereof, as well as
their importation and exportation.


3. The relations between the official veterinary and plant
protection services of both sides will be based on mutuality in
accordance with the following principles, which will be applied
in all the areas under their respective jurisdiction:


a. Israel and the Palestinian Authority will do their utmost to
preserve and improve the veterinary standards.


b. Israel and the Palestinian Authority will take all measures to
reach equivalent and compatible standards regarding animal
disease control, including mass vaccination of animals and
avians, quarantines, "stamping out" measures and residue
control standards.


c. Mutual arrangements will be made to prevent the introduction
and spread of plant pests and diseases, for their eradication
and concerning residue control standards in plant products.


d. The official veterinary and plant protection services of
Israel and the Palestinian Authority will co-ordinate and
regularly exchange information regarding animal diseases, as
well as plant pests and diseases, and will establish a
mechanism for immediate notification of the outbreak of such
diseases.


4. Trade between the two sides in animals, animal products and
biological products will be in keeping with the principles and
definitions set out in the current edition of the OIE National
Animal Health Code as updated from time to time (hereinafter -
I.A.H.C.)


5. Transit of livestock, animal products and biological products
from one side through the area under the jurisdiction of the
other side, should be conducted in a manner aimed at the
prevention of diseases spreading to or from the consignment
during its movement. For such a transit to be permitted, it is a
prerequisite that the veterinary conditions agreed upon by both
sides will be met in regard to importation of animals, their
products and biological products from external markets. Therefore
the parties agree to the following arrangements.


6. The official veterinary services of each side have the authority
to issue veterinary import permits for import of animals, animal
products and biological products to the areas under its
jurisdiction. In order to prevent the introduction of animal
diseases from third parties, the following procedures will be
adopted:


a. The import permits will strictly follow the professional
veterinary conditions for similar imports to Israel as
prevailing at the time of their issuance. The permits will
specify the country of origin and the required conditions to
be included in the official veterinary certificates which
should be issued by the veterinary authorities in the
countries of origin and which should accompany each
consignment.


Each side may propose a change in these conditions. The change
will come into force 10 days after notice to the other side,
unless the other side requested that the matter be brought
before the Veterinary Sub-Committee specified in para 14
(hereinafter - VSC). If it is more stringent than the
prevailing conditions - it will come into force 20 days after
the request, unless both sides decide otherwise through the
VSC, and if more lenient - it will come into force only if
agreed upon by both sides through the VSC.
However, if the change is urgent and needed for the protection
of animal and public health, it will come into force
immediately after notice by the other side and will remain in
force unless and until both sides agree otherwise through the
VSC.


b. The official veterinary certificates will include the
provisions regarding OIE Lists A & B Diseases as specified in
the I.A.H.C. When the I.A.H.C. allows alternative requirements
regarding the same disease, the most stringent one will be
adopted unless otherwise agreed upon by the VSC.


c. When infectious diseases which are not included in Lists A & B
of the I.A.H.C. exist or are suspected, on scientific grounds,
to exist in the exporting country, the necessary veterinary
import conditions that will be required and included in the
official veterinary certificates, will be discussed in the
VSC, and in the case of different professional opinions, the
most stringent ones will be adopted.


d. The import of live vaccines will be permitted only if so
decided by the VSC.


e. Both sides will exchange, through the VSC, information
pertaining to import licensing, including the evaluation of
the disease situation and zoosanitary capability of exporting
countries, which will be based upon official information as
well as upon other available data.


f. Consignments which do not conform with the above mentioned
requirements will not be permitted to enter the areas under
the jurisdiction of either side.


7. Transportation of livestock and poultry and of animal products
and biological products between areas under the jurisdiction of
one side through areas under the jurisdiction of the other side,
will be subject to the following technical rules:


a. The transportation will be by vehicles which will be sealed
with a seal of the official veterinary services of the place
of origin and marked with a visible sign "Animal
Transportation" or "Products of Animal Origin" in Arabic and
Hebrew, in coloured and clearly visible letters on white
background.;


b. Each consignment will be accompanied by a veterinary
certificate issued by the official veterinary services of the
place of origin, certifying that the animals or their products
were examined and are free of infectious diseases and
originate from a place which is not under quarantine or under
animal movement restrictions.


8. Transportation of livestock and poultry, animal products and
biological products destined for Israel from the Areas and vice
versa will be subject to veterinary permits issued by the
official veterinary services of the recipient side, in keeping
with the OIE standards used in international traffic in this
field. Each such consignment will be transported by a suitable
and marked vehicle, accompanied by a veterinary certificate in
the form agreed upon between the official veterinary services of
both sides. Such certificates will be issued only if permits of
the recipient side are presented.


9. In order to prevent the introduction of plant pests and diseases
to the region, the following procedures will be adopted :


a. The transportation between the Areas and Israel, of plants and
parts thereof (including fruits and vegetables), the control
of pesticide residues in them and the transportation of plant
propagation material and of animal feed, may be inspected
without delay or damage by the plant protection services of
the recipient side.


b. The transportation between the Areas through Israel of plants
and parts thereof (including fruits and vegetables) as well as
of pesticides, may be required to pass a phytosanitary
inspection without delay or damage.


c. The official Palestinian plant protection services have the
authority to issue permits for the import of plants and parts
thereof as well as of pesticides from external markets. The
permits will be based on the prevailing standards and
requirements.


The permits will specify the required conditions to be
included in the official Phytosanitary Certificates (hence
P.C.) based upon the standards and the requirements of the
International Plant Protection Convention (I.P.P.C.)and those
of the European and Mediterranean Plant Protection
Organization (E.P.P.O.) which should accompany each
consignment.
The P.C.'s will be issued by the plant protection services in
the countries of origin. Dubious or controversial cases will
be brought before the sub-committee on plant protection.


10. The agricultural produce of both sides will have free and
unrestricted access to each others' markets, with the temporary
exception of sales from one side to the other side of the
following items only: poultry, eggs, potatoes, cucumbers,
tomatoes and melons. The temporary restrictions on these items
will be gradually removed on an increasing scale until they are
finally eliminated by 1998, as listed below:



Year Poultry Eggs Potatoes Cucumbers Tomatoes Melons
--------------------------------------------------------------------
(In tons) (In (In tons) (In tons) (In tons) (In tons)
millions)


1994 5,000 30 10,000 10,000 13,000 10,000

1995 6,000 40 13,000 13,000 16,000 13,000

1996 7,000 50 15,000 15,000 19,000 15,000

1997 8,000 60 17,000 17,000 22,000 17,000

1998 unlimited unlimited unlimited unlimited unlimited unlimited
---------------------------------------------------------------------


Note: The above figures refer to the combined quantities marketed
from the West Bank and Gaza Strip to Israel and vice-versa.
The Palestinian Authority will notify Israel the apportioning
of these quantities between these areas concerning the
quantities pertaining to the Palestinian produce.


11. The Palestinians will have the right to export their agricultural
produce to external markets without restrictions, on the basis of
certificates of origin issued by the Palestinian Authority.


12. Without prejudice to obligations arising out of existing
international agreements, the two sides will refrain from
importing agricultural products from third parties which may
adversely affect the interests of each other's farmers.


13. Each side will take the necessary measures in the area under its
jurisdiction to prevent damage which may be caused by its
agriculture to the environment of the other side.


14. The two sides will establish sub-committees of their respective
official veterinary and plant protection services, which will
update the information and review issues, policies and procedures
in these fields. Any changes in the provisions of this Article
will be agreed upon by both sides.


15. The two sides will establish a sub-committee of experts in the
dairy sector in order to exchange information, discuss and
coordinate their production in this sector so as to protect the
interests of both sides. In principle, each side will produce
according to its domestic consumption.



Article IX

INDUSTRY


1. There will be free movement of industrial goods free of any
restrictions including customs and import taxes between the two
sides, subject to each side's legislation.


2. a. The Palestinian side has the right to employ various methods
in encouraging and promoting the development of the
Palestinian industry by way of providing grants, loans,
research and development assistance and direct-tax benefits.
The Palestinian side has also the right to employ other
methods of encouraging industry resorted to in Israel.


b. Both sides will exchange information about the methods
employed by them in the encouragement of their respective
industries.


c. Indirect tax rebates or benefits and other subsidies to sales
shall not be allowed in trade between the two sides.


3. Each side will do its best to avoid damage to the industry of the
other side and will take into consideration the concerns of the
other side in its industrial policy.


4. Both sides will cooperate in the prevention of deceptive
practices, trade in goods which may endanger health, safety and
the environment and in goods of expired validity.


5. Each side will take the necessary measures in the area under its
jurisdiction to prevent damage which may be caused by its
industry to the environment of the other side.


6. The Palestinians will have the right to export their industrial
produce to external markets without restrictions, on the basis of
certificates of origin issued by the Palestinian Authority.


7. The JEC will meet and review issues pertaining to this Article.


Article X

TOURISM


1. The Palestinian Authority will establish a Palestinian Tourism
Authority which will exercise, inter alia, the following powers
in the Areas.


a. Regulating, licensing, classifying and supervising tourist
services, sites and industries.


b. Promoting foreign and domestic tourism and developing the
Palestinian tourist resources and sites.


c. Supervising the marketing, promotion and information
activities related to foreign and domestic tourism .


2. Each side shall, under its respective jurisdiction, protect,
guard and ensure the maintenance and good upkeep of historical,
archaeological, cultural and religious sites and all other
tourist sites, to fit their status as well as their purpose as a
destination for visitors.


3. Each side will determine reasonable visiting hours and days for
all tourist sites in order to facilitate visits at a wide variety
of days and hours, taking into consideration religious and
national holidays. Each side shall publicize such opening times.
Meaningful changes in the opening times will take into
consideration tourist programs already committed to.


4. Tourist buses or any other form of tourist transport authorized
by either side, and operated by companies registered and licensed
by it, will be allowed to enter and proceed on their tour within
the area under the jurisdiction of the other side, provided that
such buses or other vehicles conform with the EEC technical
specifications [I. currently adopted.] All such vehicles will be
clearly marked as tourist vehicles.


5. Each side will protect the environment and the ecology around the
tourist sites under its jurisdiction. In view of the importance
of beaches and maritime activities for tourism, each side will do
its best efforts to ensure that development and construction on
the Mediterranean coast, and especially at ports (such as
Ashqelon or Gaza), will be planned and carried out in a manner
that will not adversely affect the ecology, environment or the
functions of the coastline and beaches of the other side.


6. Tourism companies and agencies licensed by either side shall
enjoy equal access to tourism - related facilities and amenities
in border points of exit and entry according to the regulations
of the authority operating them.


7. a. Each side will license, according to its own rules and
regulations, travel agents, tour companies, tour guides and
other tourism businesses (hereinafter - tourism entities)
within its jurisdiction.


b. Tourism entities authorized by either side, will be allowed to
conduct tours that include the area under the jurisdiction of
the other side, provided that their authorization as well as
their operation will be in accordance with rules, professional
requirements and standards agreed upon by both sides in the
sub-committee mentioned in para 9.


Pending that agreement, existing tourism entities in the Areas
which are currently allowed to conduct tours that include
Israel, will be allowed to continue to do so, and Israeli
authorized tourism entities will continue to be allowed to
conduct tours that include the Areas.


In addition, any tourism entity of one side that the tourism
authorities of the other side will certify as fulfilling all
its rules, professional requirements and standards, will be
allowed to conduct tours that include that other side.


8. Each side will make its own arrangement for compensation of
tourists for bodily injury and property damages caused by
political violence in the areas under its respective
jurisdiction.


9. The JEC or a tourism sub-committee established by it shall meet
upon the request of either side in order to discuss the
implementation of the provisions of this Article and resolve
problems that may arise. The sub-committee will also discuss and
consider tourist issues of benefit to both sides, and will
promote educational programs for tourism entities of both sides
in order to further their professional standards and their
ethics. Complaints of one side against the behaviour of tourism
entities of the other side will be channelled through the
committee.


Note: It is agreed that the final wording in the last sentence in
para 4 will be adopted according to the final wording in the
relevant provisions of the Agreement.



Article XI

INSURANCE ISSUES


1. The authorities, powers and responsibilities in the insurance
sphere in the Areas, including inter alia the licensing of
insurers, insurance agents and the supervision of their
activities, will be transferred to the Palestinian Authority.


2. a. The Palestinian Authority will maintain a compulsory absolute
liability system for road accident victims with a ceiling on
the amount of compensation based upon the following
principles:


(1) Absolute liability for death or bodily injury to road
accident victims, it being immaterial whether or not there
was fault on the part of the driver and whether or not
there was fault or contributory fault on the part of
others, each driver being responsible for persons
travelling in his vehicle and for pedestrians hit by his
vehicle.


(2) Compulsory insurance for all motor vehicles, covering
death or bodily injury to all road accident victims,
including drivers.


(3) No cause of action in tort for death or bodily injury
resulting from road accidents.


(4) The maintenance of a statutory fund (hereinafter - the
Fund) for compensation of road accident victims who are
unable to claim compensation from an insurer for the
following reasons:
(i) the driver liable for compensation is unknown;
(ii) the driver is not insured or his insurance does not
cover the liability involved; or
(iii) the insurer is unable to meet his liabilities.


b. Terms in this Article will have the same meaning as in the
legislation prevailing at the date of signing of the Agreement
concerning compulsory motor vehicle insurance and compensation
of road accident victims.


c. Any change by either side in the rules and regulations
regarding the implementation of the above mentioned principles
will require prior notice to the other side. A change which
might substantially affect the other side will require prior
notice of at least three months.


3. a. Upon the signing of the Agreement the Palestinian Authority
will establish a Fund for the Areas (hereinafter - the
Palestinian Fund) for the purposes detailed in para 2(a)(4)
above and for the purposes detailed below. The Palestinian
Fund will assume the responsibilities of the statutory Road
Accident Victims Compensation Fund in the West Bank and the
Gaza Strip (hereinafter - the Existing Fund) regarding the
Areas, according to the prevailing law at that time.
Accordingly, the Existing Fund will cease to be responsible
for any liability regarding accidents occurring in the Areas
from the date of signing of the Agreement.


b. The Existing Fund will transfer to the Palestinian Fund, after
the assumption of the above mentioned responsibilities by it,
the premiums paid to the Existing Fund by the insurers for
vehicles registered in the Areas, pro-rata to the unexpired
period of each insurance policy.


4. a. Compulsory motor vehicle insurance policies issued by
insurers licensed by either side will be valid in the
territories of both sides. Accordingly, a vehicle registered
in one side covered by such a policy will not be required to
have an additional insurance coverage for travel in the areas
under the other side's jurisdiction. These insurance policies
will cover all the liabilities according to the legislation of
the place of the accident.


b. In order to cover part of the liabilities which may incur due
to road accidents in Israel by uninsured vehicles registered
in the Palestinian Authority, the Palestinian Fund will
transfer to the Israeli Fund, on a monthly basis, for each
insured vehicle, an amount equal to 30% of the amount paid to
the Israeli Fund by an insurer registered in Israel, for the
sat-ne type of vehicle, for the same period of insurance
(which will not be less than 90 days).


5. In cases where a victim of a road accident wishes to claim
compensation from an insurer registered by the other side or from
the Fund of the other side or in cases where a driver or an owner
of a car is sued by a victim, by an insurer or by the Fund of the
other side, he may nominate the Fund of his side as his proxy for
this purpose. The Fund so nominated may address any relevant
party from the other side directly or through the other sides'
Fund.


6. In the case of a road accident in which neither the registration
number of the vehicle nor the identity of the driver are known,
the Fund of the side which has jurisdiction over the place of the
accident will compensate the victim, according to its own
legislation.


7. The Fund of each side will be responsible towards the victims of
the other side for any liability of the insurers of its side
regarding the compulsory insurance and will guarantee their
liabilities.


8. Each side will guarantee its Fund's liabilities according to this
Article.


9. The two sides will negotiate within three months from the date of
the signing of the Agreement a cut-off agreement between the
Existing Fund and the Palestinian Fund concerning accidents which
occurred in the Areas prior to the date of the signing of the
Agreement, whether claims have been reported or not. The cut-off
agreement will not include compensation for Israeli victims
involved in accidents which occurred in the Areas prior to the
date of the signing of the Agreement.


10. a. The two sides will establish immediately upon the signing of
the Agreement, a sub-committee of experts (hereinafter - the
Sub-Committee) which will deal with issues regarding the
implementation of this Article, including:


(1) Procedures concerning the handling of claims of victims of
the one side from insurers or from the Fund of the other
side;


(2) Procedures concerning the transfer of the amounts between
the Funds of both sides as mentioned in para 4(b) above-,


(3) The details of the cut-off agreement between the Existing
Fund and the Palestinian Fund, as set out in para 9 above;


(4) Any other relevant issue raised by either side.

b. The Sub-Committee will act as a continuous committee for
issues regarding this Article.


c. The two sides will exchange, through the Sub-Committee, the
relevant information regarding the implementation of this
Article, including police reports, medical information,
relevant statistics, premiums, etc.. The two sides will
provide each other with any other assistance required in this
regard.


11. Each side may require the re-examination of the arrangements set
out in this Article a year after the date of the signing of the
Agreement.


12. Insurers from both sides may apply for a license to the relevant
authorities of the other side, according to the rules and
regulations regarding foreign insurers in the latter side. The
two sides agree not to discriminate against such applicants.




Done in Paris, this twenty ninth day of April, 1994


For the Government of Israel For the PLO
Finance Minister Avraham ShohatAbu Ala (Ahmed Korei)


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