GENERAL ASSEMBLY SECURITY COUNCIL
Forty-ninth session Forty-ninth year

Item 38 of the preliminary list*

THE SITUATION IN THE MIDDLE EAST

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 America

* A/49/50/Rev.1.

94-25738 (E) 260794 /...

 

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.

 

 

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