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                          DECLARATION OF PRINCIPLES ON  
                      INTERIM SELF-GOVERNMENT ARRANGEMENTS  



    The  Government  of the  State of  Israel and  the P.L.O.  team  (in the
    Jordanian-Palestinian delegation  to the  Middle East  Peace Conference)
    (the  "Palestinian  Delegation"),  representing the  Palestinian people,
    agree that  it is  time to  put an  end to  decades of confrontation and
    conflict,  recognize their  mutual legitimate and political rights,  and
    strive to  live in  peaceful coexistence and mutual dignity and security
    and  achieve  a just,  lasting  and comprehensive  peace settlement  and
    historic   reconciliation   through   the   agreed  political   process.
    Accordingly, the, two sides agree to the following principles:


    Article I

    AIM OF THE NEGOTIATIONS

    The  aim  of  the  Israeli-Palestinian negotiations  within the  current
    Middle  East  peace  process  is,  among other  things,  to establish  a
    Palestinian Interim Self-Government Authority,  the elected Council (the
    "Council"),  for the  Palestinian people  in the  West Bank and the Gaza
    Strip, for a transitional period not exceeding five years,  leading to a
    permanent settlement based on Security Council Resolutions 242 and 338.

    It is  understood that  the interim arrangements 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.


    Article II

    FRAMEWORK FOR THE INTERIM PERIOD  

    The  agreed  framework  for  the  interim  period is  set forth  in this
    Declaration of Principles.


    Article III

    ELECTIONS

    1. In order  that the Palestinian people in the West Bank and Gaza Strip
       may govern  themselves according  to democratic  principles,  direct,
       free and  general political  elections will  be held  for the Council
       under agreed  supervision and  international observation,  while  the
       Palestinian police will ensure public order.

    2. An agreement  will be  concluded on  the exact mode and conditions of
       the elections  in accordance  with the  protocol attached as Annex I,
       with the  goal of  holding the  elections not  later than nine months
       after the entry into force of this Declaration of Principles.

    3. These  elections  will constitute  a significant  interim preparatory
       step  toward   the  realization  of  the  legitimate  rights  of  the
       Palestinian people and their just requirements.


    Article IV

    JURISDICTION

    Jurisdiction  of  the  Council  will  cover  West  Bank  and Gaza  Strip
    territory,  except for  issues that  will be negotiated in the permanent
    status negotiations. The two sides view the West Bank and the Gaza Strip
    as a  single territorial unit,  whose integrity will be preserved during
    the interim period.


    Article V

    TRANSITIONAL PERIOD AND PERMANENT STATUS NEGOTIATIONS

    1. The five-year transitional period will begin upon the withdrawal from
       the Gaza Strip and Jericho area.

    2. Permanent status negotiations will commence as soon as possible,  but
       not later than the beginning of the third year of the interim period,
       between  the   Government  of   Israel  and  the  Palestinian  people
       representatives.

    3. It  is  understood  that  these  negotiations  shall cover  remaining
       issues,  including:  Jerusalem,   refugees,   settlements,   security
       arrangements,   borders,   relations  and   cooperation  with   other
       neighbors, and other issues of common interest.

    4. The  two  parties  agree  that the  outcome of  the permanent  status
       negotiations  should  not be  prejudiced or  preempted by  agreements
       reached for the interim period.


    Article VI

    PREPARATORY TRANSFER OF POWERS AND RESPONSIBILITIES

    1. Upon the  entry into  force of this Declaration of Principles and the
       withdrawal from  the Gaza  Strip and the Jericho area,  a transfer of
       authority  from   the  Israeli  military  government  and  its  Civil
       Administration  to  the  authorised  Palestinians for  this task,  as
       detailed herein, will commence. This transfer of authority will be of
       a preparatory nature until the inauguration of the Council.

    2. Immediately  after  the  entry  into  force  of  this  Declaration of
       Principles and  the withdrawal  from the Gaza Strip and Jericho area,
       with the  view to promoting economic development in the West Bank and
       Gaza Strip,  authority will be transferred to the Palestinians on the
       following spheres:  education  and culture,  health,  social welfare,
       direct taxation,  and tourism.  The Palestinian side will commence in
       building the  Palestinian police force,  as agreed upon.  Pending the
       inauguration  of  the  Council,  the  two parties  may negotiate  the
       transfer of additional powers and responsibilities, as agreed upon.


    Article VII

    INTERIM AGREEMENT

    1. The Israeli  and Palestinian  delegations will negotiate an agreement
       on the interim period (the "Interim Agreement")

    2. The  Interim  Agreement  shall  specify,  among  other  things,   the
       structure of the Council, the number of its members, and the transfer
       of powers  and responsibilities  from the Israeli military government
       and its  Civil Administration  to the Council.  The Interim Agreement
       shall also  specify the  Council's executive  authority,  legislative
       authority in  accordance with  Article IX below,  and the independent
       Palestinian judicial organs.

    3. The Interim  Agreement shall include arrangements,  to be implemented
       upon  the  inauguration of  the Council,  for  the assumption  by the
       Council  of  all  of  the  powers  and  responsibilities  transferred
       previously in accordance with Article VI above.

    4. In order  to enable the Council to promote economic growth,  upon its
       inauguration,  the  Council  will establish,  among  other things,  a
       Palestinian  Electricity  Authority,  a Gaza  Sea Port  Authority,  a
       Palestinian Development Bank, a Palestinian Export Promotion Board, a
       Palestinian Environmental Authority, a Palestinian Land Authority and
       a  Palestinian   Water  Administration   Authority,   and  any  other
       Authorities agreed  upon,  in accordance  with the  Interim Agreement
       that will specify their powers and responsibilities.

    5. After the inauguration of the Council,  the Civil Administration will
       be dissolved, and the Israeli military government will be withdrawn.


    Article VIII

    PUBLIC ORDER AND SECURITY

    In  order  to  guarantee  public  order  and internal  security for  the
    Palestinians of  the West  Bank and  the Gaza  Strip,  the Council  will
    establish a strong police force, while Israel will continue to carry the
    responsibility for  defending against  external threats,  as well as the
    responsibility  for  overall  security  of Israelis  for the  purpose of
    safeguarding their internal security and public order.  


    Article IX

    LAWS AND MILITARY ORDERS

    1. The Council  will be  empowered to legislate,  in accordance with the
       Interim Agreement, within all authorities transferred to it.  

    2. Both parties  will review  jointly laws and military orders presently
       in force in remaining spheres.


    Article X

    JOINT ISRAELI-PALESTINIAN LIAISON COMMITTEE

    In order  to provide  for a smooth implementation of this Declaration of
    Principles  and  any  subsequent  agreements pertaining  to the  interim
    period,  upon the entry into force of this Declaration of Principles,  a
    Joint Israeli-Palestinian Liaison Committee will be established in order
    to  deal  with issues  requiring coordination,  other  issues of  common
    interest, and disputes.


    Article XI

    ISRAELI-PALESTINIAN COOPERATION IN ECONOMIC FIELDS

    Recognizing  the   mutual  benefit   of  cooperation  in  promoting  the
    development of the West Bank, the Gaza Strip and Israel,  upon the entry
    into force  of this  Declaration of  Principles,  an Israeli-Palestinian
    Economic Cooperation  Committee will  be established in order to develop
    and implement  in a  cooperative manner  the programs  identified in the
    protocols attached as Annex III and Annex IV.


    Article XII

    LIAISON AND COOPERATION WITH JORDAN AND EGYPT

    The  two  parties will  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  will
    include the  constitution of  a Continuing Committee that will decide by
    agreement on  the modalities  of admission of persons displaced from the
    West Bank  and Gaza  Strip in  1967, together with necessary measures to
    prevent disruption and disorder. Other matters of common concern will be
    dealt with by this Committee.


    Article XIII

    REDEPLOYMENT OF ISRAELI FORCES

    1. After the entry into force of this Declaration of Principles, and not
       later than  the eve  of elections for the Council,  a redeployment of
       Israeli military forces in the West Bank and the Gaza Strip will take
       place,  in addition  to withdrawal  of Israeli  forces carried out in
       accordance with Article XIV.

    2. In redeploying  its military  forces,  Israel will  be guided  by the
       principle  that  its  military  forces should  be redeployed  outside
       populated areas.

    3. Further  redeployments  to  specified  locations  will  be  gradually
       implemented commensurate  with the  assumption of  responsibility for
       public order  and internal  security by  the Palestinian police force
       pursuant to Article VIII above.


    Article XIV

    ISRAELI WITHDRAWAL FROM THE GAZA STRIP AND JERICHO AREA

    Israel will  withdraw from the Gaza Strip and Jericho area,  as detailed
    in the protocol attached as Annex II.


    Article XV

    RESOLUTION OF DISPUTES

    1. Disputes arising  out of  the application  or interpretation  of this
       Declaration of Principles. or any subsequent agreements pertaining to
       the interim  period,  shall be  resolved by  negotiations through the
       Joint  Liaison  Committee  to  be established  pursuant to  Article X
       above.

    2. Disputes which cannot be settled by negotiations may be resolved by a
       mechanism of conciliation to be agreed upon by 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 XVI

    ISRAELI-PALESTINIAN COOPERATION CONCERNING REGIONAL PROGRAMS

    Both  parties  view the  multilateral working  groups as  an appropriate
    instrument for  promoting a  "Marshall Plan",  the regional programs and
    other programs,  including  special programs  for the West Bank and Gaza
    Strip, as indicated in the protocol attached as Annex IV.


    Article XVII

    MISCELLANEOUS PROVISIONS

    1. This Declaration  of Principles will enter into force one month after
       its signing.

    2. All protocols  annexed to  this Declaration  of Principles and Agreed
       Minutes  pertaining  thereto shall  be regarded  as an  integral part
       hereof.



    Done at Washington, D.C., this thirteenth day of September, 1993.


    For the Government of Israel                 For the P.L.O.


                               Witnessed By:  

    The United States of America                 The Russian Federation





                                  ANNEX I  


                           PROTOCOL ON THE MODE  
                        AND CONDITIONS OF ELECTIONS  


    1.  Palestinians of  Jerusalem who  live there  will have  the right  to
        participate  in  the  election  process,  according to  an agreement
        between the two sides.

    2.  In  addition,  the  election  agreement  should cover,  among  other
        things, the following issues:

        a. the system of elections;

        b. the mode  of the agreed supervision and international observation
           and their personal composition; and

        c. rules  and  regulations  regarding  election campaign,  including
           agreed arrangements  for the  organizing of  mass media,  and the
           possibility of licensing a broadcasting and TV station.

    3.  The future  status of  displaced Palestinians who were registered on
        4th June  1967 will not  be prejudiced  because they  are unable  to
        participate in the election process due to practical reasons.





                                    ANNEX II  


          PROTOCOL ON WITHDRAWAL OF ISRAELI FORCES FROM THE GAZA STRIP  
                                AND JERICHO AREA  


    1.  The two sides will conclude and sign within two months from the date
        of entry into force of this Declaration of Principles,  an agreement
        on the withdrawal of Israeli military forces from the Gaza Strip and
        Jericho area. This agreement will include comprehensive arrangements
        to apply  in the  Gaza Strip  and the Jericho area subsequent to the
        Israeli withdrawal.

    2.  Israel will  implement an  accelerated and  scheduled withdrawal  of
        Israeli  military  forces  from  the  Gaza  Strip and  Jericho area,
        beginning immediately  with the signing of the agreement on the Gaza
        Strip  and  Jericho area  and to  be completed  within a  period not
        exceeding four months after the signing of this agreement.

    3.  The above agreement will include, among other things:

        a. Arrangements for a smooth and peaceful transfer of authority from
           the Israeli  military government  and its Civil Administration to
           the Palestinian representatives.

        b. Structure,   powers  and   responsibilities  of  the  Palestinian
           authority in these areas, except: external security, settlements,
           Israelis, foreign relations, and other mutually agreed matters.

        c. Arrangements for  the assumption  of internal security and public
           order  by  the  Palestinian  police  force  consisting of  police
           officers  recruited  locally  and  from abroad  holding Jordanian
           passports and  Palestinian documents issued by Egypt).  Those who
           will  participate  in the  Palestinian police  force coming  from
           abroad should be trained as police and police officers.

        d. A temporary international or foreign presence, as agreed upon.

        e. Establishment  of  a joint  Palestinian-Israeli Coordination  and
           Cooperation Committee for mutual security purposes.

        f. An economic development and stabilization program,  including the
           establishment  of   an  Emergency  Fund,   to  encourage  foreign
           investment,  and financial and economic support.  Both sides will
           coordinate and  cooperate jointly  and unilaterally with regional
           and international parties to support these aims.

        g. Arrangements for  a safe  passage for  persons and transportation
           between the Gaza Strip and Jericho area.

    4.  The  above  agreement  will  include  arrangements  for coordination
        between both parties regarding passages:

        a. Gaza - Egypt; and

        b. Jericho - Jordan.

    5.  The   offices   responsible  for   carrying  out   the  powers   and
        responsibilities of  the Palestinian  authority under  this Annex II
        and Article  VI of  the Declaration of Principles will be located in
        the Gaza  Strip and  in the Jericho area pending the inauguration of
        the Council.  

    6.  Other than  these agreed arrangements,  the status of the Gaza Strip
        and Jericho  area will  continue to  be an integral part of the West
        Bank and Gaza Strip, and will not be changed in the interim period.  




                                   ANNEX III  


                        PROTOCOL ON ISRAELI-PALESTINIAN  
                COOPERATION IN ECONOMIC AND DEVELOPMENT PROGRAMS  


    The  two  sides  agree  to establish  an Israeli-Palestinian  continuing
    Committee for Economic Cooperation, focusing, among other things, on the
    following:

    1.  Cooperation in  the field  of water,  including  a Water Development
        Program prepared by experts from both sides, which will also specify
        the mode  of cooperation in the management of water resources in the
        West Bank and Gaza Strip, and will include proposals for studies and
        plans on  water rights  of each  party,  as well as on the equitable
        utilization  of  joint  water  resources for  implementation in  and
        beyond the interim period.

    2.  Cooperation in  the field  of electricity,  including an Electricity
        Development Program, which will also specify the mode of cooperation
        for the  production,  maintenance,  purchase and sale of electricity
        resources.

    3.  Cooperation in the field of energy,  including an Energy Development
        Program,  which will provide for the exploitation of oil and gas for
        industrial  purposes,  particularly  in the  Gaza Strip  and in  the
        Negev, and will encourage further joint exploitation of other energy
        resources.  This Program  may also provide for the construction of a
        Petrochemical  industrial   complex  in   the  Gaza  Strip  and  the
        construction of oil and gas pipelines.

    4.  Cooperation  in   the  field  of  finance,   including  a  Financial
        Development   and   Action   Program   for   the   encouragement  of
        international investment in the West Bank and the Gaza Strip, and in
        Israel,  as well  as the  establishment of a Palestinian Development
        Bank.

    5.  Cooperation in the field of transport and communications,  including
        a Program,  which  will define guidelines for the establishment of a
        Gaza  Sea  Port  Area,  and  will  provide  for the  establishing of
        transport and communications lines to and from the West Bank and the
        Gaza Strip  to Israel  and to  other countries.  In  addition,  this
        Program will  provide for carrying out the necessary construction of
        roads, railways, communications lines, etc.

    6.  Cooperation in  the field  of trade,  including  studies,  and Trade
        Promotion  Programs,  which  will  encourage  local,   regional  and
        inter-regional trade,  as  well as  a feasibility  study of creating
        free trade  zones in the Gaza Strip and in Israel,  mutual access to
        these zones,  and  cooperation in  other areas  related to trade and
        commerce.

    7.  Cooperation  in   the  field   of  industry,   including  Industrial
        Development Programs,  which  will provide  for the establishment of
        joint  Israeli- Palestinian   Industrial  Research  and  Development
        Centers,  will  promote  Palestinian-Israeli  joint  ventures,   and
        provide   guidelines   for  cooperation   in  the   textile,   food,
        pharmaceutical,  electronics,  diamonds,  computer and science-based
        industries.

    8.  A program for cooperation in, and regulation of, labor relations and
        cooperation in social welfare issues.

    9.  A Human  Resources Development  and Cooperation Plan,  providing for
        joint  Israeli-Palestinian  workshops  and  seminars,  and  for  the
        establishment  of   joint  vocational  training  centers,   research
        institutes and data banks.

    10. An  Environmental  Protection  Plan,   providing  for  joint  and/or
        coordinated measures in this sphere.

    11. A program  for developing  coordination and cooperation in the field
        of communication and media.

    12. Any other programs of mutual interest.





                                    ANNEX IV  


                  PROTOCOL ON ISRAELI-PALESTINIAN COOPERATION  
                    CONCERNING REGIONAL DEVELOPMENT PROGRAMS  


    1.  The two  sides will  cooperate in  the context  of the  multilateral
        peace efforts  in promoting  a Development  Program for  the region,
        including the  West Bank and the Gaza Strip,  to be initiated by the
        G-7. The parties  will request  the G-7 to seek the participation in
        this program  of other  interested states,  such  as members  of the
        Organisation for Economic Cooperation and Development, regional Arab
        states and institutions, as well as members of the private sector.

    2.  The Development Program will consist of two elements:

        a) an Economic  Development Program  for the 'West Bank and the Gaza
           Strip.

        b) a Regional Economic Development Program.

           A. The Economic  Development Program  for the  West Bank  and the
              Gaza strip will consist of the following elements:

              (1) A Social  Rehabilitation Program,  including a Housing and
                  Construction Program.

              (2) A Small and Medium Business Development Plan.

              (3) An Infrastructure Development Program (water, electricity,
                  transportation and communications, etc.)

              (4) A Human Resources Plan.  

              (5) Other programs.

           B. The Regional  Economic Development  Program may consist of the
              following elements:

              (1) The establishment of a Middle East Development Fund,  as a
                  first  step,  and  a Middle  East Development  Bank,  as a
                  second step.

              (2) The development  of a  joint Israeli-Palestinian-Jordanian
                  Plan for coordinated exploitation of the Dead Sea area.

              (3) The Mediterranean Sea (Gaza) - Dead Sea Canal.

              (4) Regional  Desalinization   and  other   water  development
                  projects.

              (5) A regional plan for agricultural development,  including a
                  coordinated  regional   effort  for   the  prevention   of
                  desertification.

              (6) Interconnection of electricity grids.

              (7) Regional cooperation  for the  transfer,  distribution and
                  industrial  exploitation  of  gas,  oil  and other  energy
                  resources.

              (8) A Regional Tourism,  Transportation and Telecommunications
                  Development Plan.

              (9) Regional cooperation in other spheres.


    3.  The two  sides will  encourage the multilateral working groups,  and
        will  coordinate  towards  their  success.   The  two  parties  will
        encourage intersessional activities,  as well as pre-feasibility and
        feasibility studies, within the various multilateral working groups.





                             AGREED MINUTES TO THE  
                          DECLARATION OF PRINCIPLES ON  
                      INTERIM SELF-GOVERNMENT ARRANGEMENTS  



    A.  GENERAL UNDERSTANDINGS AND AGREEMENTS

        Any  powers  and  responsibilities  transferred to  the Palestinians
        pursuant to  the Declaration of Principles prior to the inauguration
        of the  Council will be subject to the same principles pertaining to
        Article IV, as set out in these Agreed Minutes below.


    B.  SPECIFIC UNDERSTANDINGS AND AGREEMENTS


        Article IV

        It is understood that:

    1.  Jurisdiction of  the Council  will cover  West Bank  and Gaza  Strip
        territory,  except  for  issues  that  will  be  negotiated  in  the
        permanent  status  negotiations:  Jerusalem,  settlements,  military
        locations, and Israelis.

    2.  The  Council's  jurisdiction will  apply with  regard to  the agreed
        powers, responsibilities, spheres and authorities transferred to it.


        Article VI (2)

        It is agreed that the transfer of authority will be as follows:

        (1)   The Palestinian side will inform the Israeli side of the names
              of the  authorised Palestinians  who will  assume the  powers,
              authorities and  responsibilities that  will be transferred to
              the Palestinians according to the Declaration of Principles in
              the following fields:  education and culture,  health,  social
              welfare, direct taxation,  tourism,  and any other authorities
              agreed upon.

        (2)   It  is  understood that  the rights  and obligations  of these
              offices will not be affected.

        (3)   Each of  the spheres  described above  will continue  to enjoy
              existing budgetary allocations in accordance with arrangements
              to  be  mutually  agreed  upon.  These arrangements  also will
              provide for  the necessary  adjustments required  in order  to
              take into  account the  taxes collected by the direct taxation
              office.

        (4)   Upon  the  execution  of  the Declaration  of Principles,  the
              Israeli and  Palestinian delegations will immediately commence
              negotiations on  a detailed plan for the transfer of authority
              on   the   above  offices   in  accordance   with  the   above
              understandings.


        Article VII (2)

        The   Interim   Agreement   will   also  include   arrangements  for
        coordination and cooperation.


        Article VII (5)

        The withdrawal  of the  military government  will not prevent Israel
        from exercising  the powers  and responsibilities not transferred to
        the Council.


        Article VIII

        It  is   understood  that   the  Interim   Agreement  will   include
        arrangements  for  cooperation  and  coordination  between  the  two
        parties in  this regard.  It  is also  agreed that  the transfer  of
        powers  and  responsibilities  to  the  Palestinian  police will  be
        accomplished in a phased manner, as agreed in the Interim Agreement.


        Article X

        It is  agreed that,  upon the entry into force of the Declaration of
        Principles,  the Israeli  and Palestinian  delegations will exchange
        the names  of the  individuals designated  by them as members of the
        Joint Israeli-Palestinian Liaison Committee.

        It is  further agreed  that each  side will  have an equal number of
        members  in  the Joint  Committee.  The Joint  Committee will  reach
        decisions  by   agreement.   The  Joint   Committee  may  add  other
        technicians and  experts,  as necessary.  The  Joint Committee  will
        decide on the frequency and place or places of its meetings.


        ANNEX II

        It is understood that, subsequent to the Israeli withdrawal,  Israel
        will  continue  to be  responsible for  external security,  and  for
        internal  security  and public  order of  settlements and  Israelis.
        Israeli  military  forces and  civilians may  continue to  use roads
        freely within the Gaza Strip and the Jericho area.



    Done at Washington, D.C., this thirteenth day of September, 1993.


    For the Government of Israel                 For the P.L.O.



                                 Witnessed By:  

    The United States of America                 The Russian Federation

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