Declaration of Principles on Interim Self-Government Arrangements

September 13, 1993

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

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.

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.

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

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

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.

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.

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

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.

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

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

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.

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.

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.

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

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

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
Liason 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

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.

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

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

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.

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

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

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

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:

Annexes

Annex I
Protocol on the Mode and Conditions of Elections

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

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

the system of elections;

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

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.

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

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.

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.

The above agreement will include, among other things:

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

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

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.

A temporary international or foreign presence, as agreed upon.

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

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.

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

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

Gaza - Egypt; and

Jericho - Jordan.

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.

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:

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.

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.

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.

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.

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.

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.

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.

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

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.

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

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

Any other programs of mutual interest.

Annex IV
Protocol on Israeli-Palestinian
Cooperation Concerning Regional Development Programs

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.

The Development Program will consist of two elements:

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

a Regional Economic Development Program:

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

A Social Rehabilitation Program, including a Housing and
Construction Program.

A Small and Medium Business Development Plan.

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

A Human Resources Plan.

Other programs.

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

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

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

The Mediterranean Sea (Gaza) - Dead Sea Canal.

Regional Desalinization and other water development projects.

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

Interconnection of electricity grids.

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

A Regional Tourism, Transportation and Telecommunications
Development Plan.

Regional cooperation in other spheres.

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
Agreemments

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:

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.

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:

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.

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

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.

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:

Hebrew
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