NOTE FOR THE RECORD

The two leaders met on January 15, 1997, in the presence of the U.S. Special Middle East

Coordinator. They requested him to prepare this Note for the Record to summarize what they agreed upon at their meeting.

Mutual Undertakings

The two leaders agreed that the Oslo peace process must move forward to succeed. Both parties to the Interim Agreement have concerns and obligations. Accordingly, the two leaders reaffirmed their commitment to implement the Interim Agreement on the basis of reciprocity and, in this context,conveyed the following undertakings to each other:

Israeli Responsibilities

The Israeli side reaffirms its commitments to the following measures and principles in accordance with the Interim Agreement:

Issues for Implementation

1. Further Redeployment Phases

The first phase of further redeployments will be carried out during the first week of March.

2. Prisoner Release Issues

Prisoner release issues will be dealt with in accordance with the Interim Agreement's Provisions and procedures, including Annex VII.

Issues for Negotiation

3. Outstanding Interim Agreement Issues

Negotiations on the following outstanding issues from the Interim Agreement will be

immediately resumed. Negotiations on these issues will be conducted in parallel:

a. Safe Passage

b. Gaza Airport

c. Gaza port

d. Passages

e. Economic, financial, civilian and security issues

f. People-to-people

4. Permanent Status Negotiations

Permanent status negotiations will be resumed within two months after implementation of the Hebron Protocol.

Palestinian Responsibilities

The Palestinian side reaffirms its commitments to the following measures and principles in accordance with the Interim Agreement:

1. Complete the process of revising the Palestinian National Charter

2. Fighting terror and preventing violence

a. Strengthening security cooperation

b. Preventing incitement and hostile propaganda, as specified in Article XXII of the Interim Agreement

c. Combat systematically and effectively terrorist organizations and infrastructure

d. Apprehension, prosecution and punishment of terrorists

e. Requests for transfer of suspects and defendants will be acted upon in accordance with Article II(7)(f) of Annex IV to the Interim Agreement

f. Confiscation of illegal firearms

3. Size of Palestinian Police will be pursuant to the Interim Agreement.

4. Exercise of Palestinian governmental activity, and location of Palestinian governmental

offices will be as specified in the Interim Agreement.

The aforementioned commitments will be dealt with immediately and in parallel.

Other Issues

Either party is free to raise other issues not specified above related to implementation of the Interim Agreement and obligations of both sides arising from the Interim Agreement.

Prepared by Ambassador Dennis Ross At the request of Prime Minister Benjamin Netanyahu and Ra’ees Yasser Arafat

Agreed Minute

(Article 7)

The leaders agreed that the process of reopening the Shuhada Road will begin immediately, and will be fully completed within four months based on the premise that the preparations agreed between the two sides have been completed in accordance with the American plan.

AMERICAN PLAN ON AL-SHUHADA STREET

January 7, 1997

As part of its ongoing support for the peace process between Israelis and Palestinians, the United States intends to finance and supervise preparations to improve and facilitate the complete reopening of al-Shuhada Street in the City of Hebron. This work will take place in conjunction with the implementation of the "Protocol Concerning the Redeployment in Hebron" concluded between the two sides.

Description of Activity:

USAID intends to fund and manage the upgrading of utilities, primarily potable water lines and sanitary sewers, in the area of al-Shuhada Street to improve access to service. In conjunction with these improvements to utilities, USAID will direct renovation of the area within al-Shuhada Street to provide a safe and attractive environment for local businesses, pedestrians and vehicular traffic. The existing street will be completely reconstructed for a distance of approximately 700 meters including Gross square and also along a 200 meter spur of Rahme Road and a 100 meter spur leading to the Old City Gate. Major elements of this proposed activity as currently envisaged include:

Reconstruction of water distribution mains, sanitary sewers and electrical lines

Installation of a new water transmission line

Installation of a new storm drain system (if appropriate)

Paving of street with asphalt (typically, width varies from 6 to 9 meters)

Construction of concrete brick sidewalks (typically, 2 to 3 meters in width on each side

of the street) with precast concrete curbs

Construction of concrete brick median strips with precuts concrete curbs in the street

Installation of lampposts

Erection of safety barriers at selected locations

Sandblasting of stone exteriors of streetfront shops, stone fences and stone masonry

retaining walls

Painting of shop doors

Installation of awnings along streetfront shops and residences

Installation of cast iron fencing along curbs

Installation of litter baskets

Installation of planters

Installation of new traffic signs

Painting of curbs

Planting of small trees, shrubs and flowers.

This plan also includes the widening of the al-Shuhada Street in the vicinity of Beit Hadassah and Beit Schnerson. The details of this aspect of the plan include the following elements: the road in front of Beit Hadassah and Beit Schnerson will be widened to 13 meters; there will be sidewalks on each side of the street; each sidewalk will be separated from the street by a low stone wall with iron railings, no more than 1.25 meters high and 30 meters long; there will be equal roadways 3.55 meters wide in each direction; the two roadways will be divided by a security wall no more than 0.40 meters wide, 1.50 meters high and 30 meters long; there will be ten parking spaces on the northeast side of the street.

USAID expects that the renovation of al-Shuhada Street will commence in mid-January 1997 and will be completed as quickly as technical considerations permit. All activities will be subject to applicable laws and regulations. Continuing consultation will be held to address technical issues that may arise during the implementation of this plan.