DECLARATION OF PRINCIPLES

                  ON INTERIM SELF-GOVERNMENT ARRANGEMENTS



                             September 13, 1993





The Government of the State of Israel and the P.L.O. team (in the

Jordanian-Palestinian delegation to the Middle East Peace Conference) (the

"Palestinian Delegation"), representing the Palestinian people, agree that

it is time to put an end to decades of confrontation and conflict,

recognize their mutual legitimate and political rights, and strive to live

in peaceful coexistence and mutual dignity and security and achieve a just,

lasting and comprehensive peace settlement and historic reconciliation

through the agreed political process. Accordingly, the, two sides agree to

the following principles:



ARTICLE I



AIM OF THE NEGOTIATIONS



The aim of the Israeli-Palestinian negotiations within the current Middle

East peace process is, among other things, to establish a Palestinian

Interim Self-Government Authority, the elected Council (the "Council"), for

the Palestinian people in the West Bank and the Gaza Strip, for a

transitional period not exceeding five years, leading to a permanent

settlement based on Security Council Resolutions 242 and 338.



It is understood that the interim arrangements are an integral part of the

whole peace process and that the negotiations on the permanent status will

lead to the implementation of Security Council Resolutions 242 and 338.



ARTICLE II



FRAMEWORK FOR THE INTERIM PERIOD



The agreed framework for the interim period is set forth in this

Declaration of Principles.



ARTICLE III



ELECTIONS



  1. In order that the Palestinian people in the West Bank and Gaza Strip

     may govern themselves according to democratic principles, direct, free

     and general political elections will be held for the Council under

     agreed supervision and international observation, while the

     Palestinian police will ensure public order.



  2. An agreement will be concluded on the exact mode and conditions of the

     elections in accordance with the protocol attached as Annex I, with

     the goal of holding the elections not later than nine months after the

     entry into force of this Declaration of Principles.



  3. These elections will constitute a significant interim preparatory step

     toward the realization of the legitimate rights of the Palestinian

     people and their just requirements.



ARTICLE IV



JURISDICTION



Jurisdiction of the Council will cover West Bank and Gaza Strip territory,

except for issues that will be negotiated in the permanent status

negotiations. The two sides view the West Bank and the Gaza Strip as a

single territorial unit, whose integrity will be preserved during the

interim period.



ARTICLE V



TRANSITIONAL PERIOD AND PERMANENT STATUS NEGOTIATIONS



  1. The five-year transitional period will begin upon the withdrawal from

     the Gaza Strip and Jericho area.



  2. Permanent status negotiations will commence as soon as possible, but

     not later than the beginning of the third year of the interim period,

     between the Government of Israel and the Palestinian people

     representatives.



  3. It is understood that these negotiations shall cover remaining issues,

     including: Jerusalem, refugees, settlements, security arrangements,

     borders, relations and cooperation with other neighbors, and other

     issues of common interest.



  4. The two parties agree that the outcome of the permanent status

     negotiations should not be prejudiced or preempted by agreements

     reached for the interim period.



ARTICLE VI



PREPARATORY TRANSFER OF POWERS AND RESPONSIBILITIES



  1. Upon the entry into force of this Declaration of Principles and the

     withdrawal from the Gaza Strip and the Jericho area, a transfer of

     authority from the Israeli military government and its Civil

     Administration to the authorised Palestinians for this task, as

     detailed herein, will commence. This transfer of authority will be of

     a preparatory nature until the inauguration of the Council.



  2. Immediately after the entry into force of this Declaration of

     Principles and the withdrawal from the Gaza Strip and Jericho area,

     with the view to promoting economic development in the West Bank and

     Gaza Strip, authority will be transferred to the Palestinians on the

     following spheres: education and culture, health, social welfare,

     direct taxation, and tourism. The Palestinian side will commence in

     building the Palestinian police force, as agreed upon. Pending the

     inauguration of the Council, the two parties may negotiate the

     transfer of additional powers and responsibilities, as agreed upon.



ARTICLE VII



INTERIM AGREEMENT



  1. The Israeli and Palestinian delegations will negotiate an agreement on

     the interim period (the "Interim Agreement")



  2. The Interim Agreement shall specify, among other things, the structure

     of the Council, the number of its members, and the transfer of powers

     and responsibilities from the Israeli military government and its

     Civil Administration to the Council. The Interim Agreement shall also

     specify the Council's executive authority, legislative authority in

     accordance with Article IX below, and the independent Palestinian

     judicial organs.



  3. The Interim Agreement shall include arrangements, to be implemented

     upon the inauguration of the Council, for the assumption by the

     Council of all of the powers and responsibilities transferred

     previously in accordance with Article VI above.



  4. In order to enable the Council to promote economic growth, upon its

     inauguration, the Council will establish, among other things, a

     Palestinian Electricity Authority, a Gaza Sea Port Authority, a

     Palestinian Development Bank, a Palestinian Export Promotion Board, a

     Palestinian Environmental Authority, a Palestinian Land Authority and

     a Palestinian Water Administration Authority, and any other

     Authorities agreed upon, in accordance with the Interim Agreement that

     will specify their powers and responsibilities.



  5. After the inauguration of the Council, the Civil Administration will

     be dissolved, and the Israeli military government will be withdrawn.



ARTICLE VIII



PUBLIC ORDER AND SECURITY



In order to guarantee public order and internal security for the

Palestinians of the West Bank and the Gaza Strip, the Council will

establish a strong police force, while Israel will continue to carry the

responsibility for defending against external threats, as well as the

responsibility for overall security of Israelis for the purpose of

safeguarding their internal security and public order.



ARTICLE IX



LAWS AND MILITARY ORDERS



  1. The Council will be empowered to legislate, in accordance with the

     Interim Agreement, within all authorities transferred to it.



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

     force in remaining spheres.



ARTICLE X



JOINT ISRAELI-PALESTINIAN LIAISON COMMITTEE



In order to provide for a smooth implementation of this Declaration of

Principles and any subsequent agreements pertaining to the interim period,

upon the entry into force of this Declaration of Principles, a Joint

Israeli-Palestinian Liaison Committee will be established in order to deal

with issues requiring coordination, other issues of common interest, and

disputes.



ARTICLE XI



ISRAELI-PALESTINIAN COOPERATION IN ECONOMIC FIELDS



Recognizing the mutual benefit of cooperation in promoting the development

of the West Bank, the Gaza Strip and Israel, upon the entry into force of

this Declaration of Principles, an Israeli-Palestinian Economic Cooperation

Committee will be established in order to develop and implement in a

cooperative manner the programs identified in the protocols attached as

Annex III and Annex IV .



ARTICLE XII



LIAISON AND COOPERATION WITH JORDAN AND EGYPT



The two parties will invite the Governments of Jordan and Egypt to

participate in establishing further liaison and cooperation arrangements

between the Government of Israel and the Palestinian representatives, on

the one hand, and the Governments of Jordan and Egypt, on the other hand,

to promote cooperation between them. These arrangements will include the

constitution of a Continuing Committee that will decide by agreement on the

modalities of admission of persons displaced from the West Bank and Gaza

Strip in 1967, together with necessary measures to prevent disruption and

disorder. Other matters of common concern will be dealt with by this

Committee.



ARTICLE XIII



REDEPLOYMENT OF ISRAELI FORCES



  1. After the entry into force of this Declaration of Principles, and not

     later than the eve of elections for the Council, a redeployment of

     Israeli military forces in the West Bank and the Gaza Strip will take

     place, in addition to withdrawal of Israeli forces carried out in

     accordance with Article XIV.



  2. In redeploying its military forces, Israel will be guided by the

     principle that its military forces should be redeployed outside

     populated areas.



  3. Further redeployments to specified locations will be gradually

     implemented commensurate with the assumption of responsibility for

     public order and internal security by the Palestinian police force

     pursuant to Article VIII above.



ARTICLE XIV



ISRAELI WITHDRAWAL FROM THE GAZA STRIP AND JERICHO AREA



Israel will withdraw from the Gaza Strip and Jericho area, as detailed in

the protocol attached as Annex II.



ARTICLE XV



RESOLUTION OF DISPUTES



  1. Disputes arising out of the application or interpretation of this

     Declaration of Principles. or any subsequent agreements pertaining to

     the interim period, shall be resolved by negotiations through the

     Joint Liaison Committee to be established pursuant to Article X above.



  2. Disputes which cannot be settled by negotiations may be resolved by a

     mechanism of conciliation to be agreed upon by the parties.



  3. The parties may agree to submit to arbitration disputes relating to

     the interim period, which cannot be settled through conciliation. To

     this end, upon the agreement of both parties, the parties will

     establish an Arbitration Committee.



ARTICLE XVI



ISRAELI-PALESTINIAN COOPERATION CONCERNING REGIONAL PROGRAMS



Both parties view the multilateral working groups as an appropriate

instrument for promoting a "Marshall Plan", the regional programs and other

programs, including special programs for the West Bank and Gaza Strip, as

indicated in the protocol attached as Annex IV .



ARTICLE XVII



MISCELLANEOUS PROVISIONS



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

     its signing.



  2. All protocols annexed to this Declaration of Principles and Agreed

     Minutes pertaining thereto shall be regarded as an integral part

     hereof.



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



                        For the Government of Israel

                               For the P.L.O.



                               Witnessed By:



                        The United States of America

                           The Russian Federation



                                  ANNEX I



              PROTOCOL ON THE MODE AND CONDITIONS OF ELECTIONS



  1. Palestinians of Jerusalem who live there will have the right to

     participate in the election process, according to an agreement between

     the two sides.



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

     the following issues:



       a. the system of elections;

       b. the mode of the agreed supervision and international observation

          and their personal composition; and

       c. rules and regulations regarding election campaign, including

          agreed arrangements for the organizing of mass media, and the

          possibility of licensing a broadcasting and TV station.



  3. The future status of displaced Palestinians who were registered on 4th

     June 1967 will not be prejudiced because they are unable to

     participate in the election process due to practical reasons.



                                  ANNEX II



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

                                    AREA



  1. The two sides will conclude and sign within two months from the date

     of entry into force of this Declaration of Principles, an agreement on

     the withdrawal of Israeli military forces from the Gaza Strip and

     Jericho area. This agreement will include comprehensive arrangements

     to apply in the Gaza Strip and the Jericho area subsequent to the

     Israeli withdrawal.



  2. Israel will implement an accelerated and scheduled withdrawal of

     Israeli military forces from the Gaza Strip and Jericho area,

     beginning immediately with the signing of the agreement on the Gaza

     Strip and Jericho area and to be completed within a period not

     exceeding four months after the signing of this agreement.



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



       a. Arrangements for a smooth and peaceful transfer of authority from

          the Israeli military government and its Civil Administration to

          the Palestinian representatives.

       b. Structure, powers and responsibilities of the Palestinian

          authority in these areas, except: external security, settlements,

          Israelis, foreign relations, and other mutually agreed matters.

       c. Arrangements for the assumption of internal security and public

          order by the Palestinian police force consisting of police

          officers recruited locally and from abroad holding Jordanian

          passports and Palestinian documents issued by Egypt). Those who

          will participate in the Palestinian police force coming from

          abroad should be trained as police and police officers.

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

       e. Establishment of a joint Palestinian-Israeli Coordination and

          Cooperation Committee for mutual security purposes.

       f. An economic development and stabilization program, including the

          establishment of an Emergency Fund, to encourage foreign

          investment, and financial and economic support. Both sides will

          coordinate and cooperate jointly and unilaterally with regional

          and international parties to support these aims.

       g. Arrangements for a safe passage for persons and transportation

          between the Gaza Strip and Jericho area.



  4. The above agreement will include arrangements for coordination between

     both parties regarding passages:



       a. Gaza - Egypt; and



       b. Jericho - Jordan.



  5. The offices responsible for carrying out the powers and

     responsibilities of the Palestinian authority under this Annex II and

     Article VI of the Declaration of Principles will be located in the

     Gaza Strip and in the Jericho area pending the inauguration of the

     Council.



  6. Other than these agreed arrangements, the status of the Gaza Strip and

     Jericho area will continue to be an integral part of the West Bank and

     Gaza Strip, and will not be changed in the interim period.



                                 ANNEX III



  PROTOCOL ON ISRAELI-PALESTINIAN COOPERATION IN ECONOMIC AND DEVELOPMENT

                                  PROGRAMS



The two sides agree to establish an Israeli-Palestinian continuing

Committee for Economic Cooperation, focusing, among other things, on the

following:



  1. Cooperation in the field of water, including a Water Development

     Program prepared by experts from both sides, which will also specify

     the mode of cooperation in the management of water resources in the

     West Bank and Gaza Strip, and will include proposals for studies and

     plans on water rights of each party, as well as on the equitable

     utilization of joint water resources for implementation in and beyond

     the interim period.



  2. Cooperation in the field of electricity, including an Electricity

     Development Program, which will also specify the mode of cooperation

     for the production, maintenance, purchase and sale of electricity

     resources.



  3. Cooperation in the field of energy, including an Energy Development

     Program, which will provide for the exploitation of oil and gas for

     industrial purposes, particularly in the Gaza Strip and in the Negev,

     and will encourage further joint exploitation of other energy

     resources. This Program may also provide for the construction of a

     Petrochemical industrial complex in the Gaza Strip and the

     construction of oil and gas pipelines.



  4. Cooperation in the field of finance, including a Financial Development

     and Action Program for the encouragement of international investment

     in the West Bank and the Gaza Strip, and in Israel, as well as the

     establishment of a Palestinian Development Bank.



  5. Cooperation in the field of transport and communications, including a

     Program, which will define guidelines for the establishment of a Gaza

     Sea Port Area, and will provide for the establishing of transport and

     communications lines to and from the West Bank and the Gaza Strip to

     Israel and to other countries. In addition, this Program will provide

     for carrying out the necessary construction of roads, railways,

     communications lines, etc.



  6. Cooperation in the field of trade, including studies, and Trade

     Promotion Programs, which will encourage local, regional and

     inter-regional trade, as well as a feasibility study of creating free

     trade zones in the Gaza Strip and in Israel, mutual access to these

     zones, and cooperation in other areas related to trade and commerce.



  7. Cooperation in the field of industry, including Industrial Development

     Programs, which will provide for the establishment of joint Israeli-

     Palestinian Industrial Research and Development Centers, will promote

     Palestinian-Israeli joint ventures, and provide guidelines for

     cooperation in the textile, food, pharmaceutical, electronics,

     diamonds, computer and science-based industries.



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

     cooperation in social welfare issues.



  9. A Human Resources Development and Cooperation Plan, providing for

     joint Israeli-Palestinian workshops and seminars, and for the

     establishment of joint vocational training centers, research

     institutes and data banks.



 10. An Environmental Protection Plan, providing for joint and/or

     coordinated measures in this sphere.



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

     communication and media.



 12. Any other programs of mutual interest.



                                  ANNEX IV



PROTOCOL ON ISRAELI-PALESTINIAN COOPERATION CONCERNING REGIONAL DEVELOPMENT

                                  PROGRAMS



  1. The two sides will cooperate in the context of the multilateral peace

     efforts in promoting a Development Program for the region, including

     the West Bank and the Gaza Strip, to be initiated by the G-7. The

     parties will request the G-7 to seek the participation in this program

     of other interested states, such as members of the Organisation for

     Economic Cooperation and Development, regional Arab states and

     institutions, as well as members of the private sector.



  2. The Development Program will consist of two elements:



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

          Strip.

       b. a Regional Economic Development Program.



       A. The Economic Development Program for the West Bank and the Gaza

          strip will consist of the following elements:



            1. A Social Rehabilitation Program, including a Housing and

               Construction Program.

            2. A Small and Medium Business Development Plan.

            3. An Infrastructure Development Program (water, electricity,

               transportation and communications, etc.)

            4. A Human Resources Plan.

            5. Other programs.



       B. The Regional Economic Development Program may consist of the

          following elements:



            1. The establishment of a Middle East Development Fund, as a

               first step, and a Middle East Development Bank, as a second

               step.

            2. The development of a joint Israeli-Palestinian-Jordanian

               Plan for coordinated exploitation of the Dead Sea area.

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

            4. Regional Desalinization and other water development

               projects.

            5. A regional plan for agricultural development, including a

               coordinated regional effort for the prevention of

               desertification.

            6. Interconnection of electricity grids.

            7. Regional cooperation for the transfer, distribution and

               industrial exploitation of gas, oil and other energy

               resources.

            8. A Regional Tourism, Transportation and Telecommunications

               Development Plan.

            9. Regional cooperation in other spheres.



  3. The two sides will encourage the multilateral working groups, and will

     coordinate towards their success. The two parties will encourage

     intersessional activities, as well as pre-feasibility and feasibility

     studies, within the various multilateral working groups.



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

                                ARRANGEMENTS



A. GENERAL UNDERSTANDINGS AND AGREEMENTS



Any powers and responsibilities transferred to the Palestinians pursuant to

the Declaration of Principles prior to the inauguration of the Council will

be subject to the same principles pertaining to Article IV, as set out in

these Agreed Minutes below.



B. SPECIFIC UNDERSTANDINGS AND AGREEMENTS



Article IV



It is understood that:



  1. Jurisdiction of the Council will cover West Bank and Gaza Strip

     territory, except for issues that will be negotiated in the permanent

     status negotiations: Jerusalem, settlements, military locations, and

     Israelis.



  2. The Council's jurisdiction will apply with regard to the agreed

     powers, responsibilities, spheres and authorities transferred to it.



Article VI (2)



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



  1. The Palestinian side will inform the Israeli side of the names of the

     authorised Palestinians who will assume the powers, authorities and

     responsibilities that will be transferred to the Palestinians

     according to the Declaration of Principles in the following fields:

     education and culture, health, social welfare, direct taxation,

     tourism, and any other authorities agreed upon.



  2. It is understood that the rights and obligations of these offices will

     not be affected.



  3. Each of the spheres described above will continue to enjoy existing

     budgetary allocations in accordance with arrangements to be mutually

     agreed upon. These arrangements also will provide for the necessary

     adjustments required in order to take into account the taxes collected

     by the direct taxation office.



  4. Upon the execution of the Declaration of Principles, the Israeli and

     Palestinian delegations will immediately commence negotiations on a

     detailed plan for the transfer of authority on the above offices in

     accordance with the above understandings.



Article VII (2)



The Interim Agreement will also include arrangements for coordination and

cooperation.



Article VII (5)



The withdrawal of the military government will not prevent Israel from

exercising the powers and responsibilities not transferred to the Council.



Article VIII



It is understood that the Interim Agreement will include arrangements for

cooperation and coordination between the two parties in this regard. It is

also agreed that the transfer of powers and responsibilities to the

Palestinian police will be accomplished in a phased manner, as agreed in

the Interim Agreement.



Article X



It is agreed that, upon the entry into force of the Declaration of

Principles, the Israeli and Palestinian delegations will exchange the names

of the individuals designated by them as members of the Joint

Israeli-Palestinian Liaison Committee.



It is further agreed that each side will have an equal number of members in

the Joint Committee. The Joint Committee will reach decisions by agreement.

The Joint Committee may add other technicians and experts, as necessary.

The Joint Committee will decide on the frequency and place or places of its

meetings.



Annex II



It is understood that, subsequent to the Israeli withdrawal, Israel will

continue to be responsible for external security, and for internal security

and public order of settlements and Israelis. Israeli military forces and

civilians may continue to use roads freely within the Gaza Strip and the

Jericho area.



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



                        For the Government of Israel

                               For the P.L.O.



                               Witnessed By:



                        The United States of America

                           The Russian Federation