AGREEMENT ON PREPARATORY TRANSFER OF POWERS AND RESPONSIBILITIES
August 29, 1994
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 preparatory arrangements to apply in the West
Bank 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;
FOLLOWING the Agreement on the Gaza Strip and the Jericho Area as signed at
Cairo on May 4, 1994 (hereinafter "the Gaza-Jericho Agreement");
DESIROUS of putting into effect the Declaration of Principles on Interim
Self-Government Arrangements as signed at Washington, D.C. on September 13,
1993 (hereinafter "the Declaration of Principles"), and in particular
Article VI regarding preparatory transfer of powers and responsibilities
and the Agreed Minutes thereto;
HEREBY AGREE to the following arrangements regarding the preparatory
transfer of powers and responsibilities in the West Bank:
ARTICLE I
DEFINITIONS
For the purpose of this Agreement, unless otherwise indicated in the
attached Protocols:
a. the term "the Palestinian Authority" means the Palestinian Authority
established in accordance with the Gaza-Jericho Agreement;
b. the term "Joint Liaison Committee" means the Joint Israeli-Palestinian
Liaison Committee established pursuant to Article X of the Declaration
of Principles;
c. the term "Interim Agreement" means the interim agreement referred to
in Article VII of the Declaration of Principles; and
d. the term "Israelis" also includes Israeli statutory agencies and
corporations registered in Israel.
ARTICLE II
PREPARATORY TRANSFER OF POWERS AND RESPONSIBILITIES
1. Israel shall transfer and the Palestinian Authority shall assume
powers and responsibilities from the Israeli military government and
its Civil Administration in the West Bank in the following spheres:
education and culture, health, social welfare, tourism, direct
taxation and Value Added Tax on local production (hereinafter "VAT"),
as specified in this Agreement (hereinafter "the Spheres").
2. For the purposes of this Agreement, the Palestinian Authority shall
constitute the authorized Palestinians referred to in Article VI of
the Declaration of Principles.
3. The Parties will explore the possible expansion of the transfer of
powers and responsibilities to additional spheres.
ARTICLE III
SCOPE OF THE TRANSFERRED POWERS AND RESPONSIBILITIES
1. The scope of the powers and responsibilities transferred in each
Sphere, as well as specific arrangements regarding the exercise of
such powers and responsibilities, are set out in the Protocols
attached as Annexes I through VI.
2. In accordance with the Declaration of Principles, the jurisdiction of
the Palestinian Authority with regard to the powers and
responsibilities transferred by this Agreement will not apply to
Jerusalem, settlements, military locations and, unless otherwise
provided in this Agreement, Israelis.
3. The transfer of powers and responsibilities under this Agreement does
not include powers and responsibilities in the sphere of foreign
relations, except as indicated in Article VI(2)(b) of the Gaza-
Jericho Agreement.
ARTICLE IV
MODALITIES OF TRANSFER
1. The transfer of powers and responsibilities in the sphere of education
and culture pursuant to this Agreement will be implemented on August
29, 1994. The transfer of powers and responsibilities in the remaining
Spheres will be implemented in accordance with Article XI below.
2. The transfer of powers and responsibilities shall be coordinated
through the Civil Affairs Coordination and Cooperation Committee
referred to in Article X below and shall be implemented in accordance
with the arrangements set out in this Agreement in a smooth, peaceful
and orderly manner.
3. Upon the signing of this Agreement, the Israeli side shall provide the
Palestinian side with, or enable free access to, all information that
is necessary for an effective and smooth transfer.
4. On the date of the transfer of powers and responsibilities, Israel
shall also transfer all movable and immovable property which
exclusively serves the offices of the Civil Administration in the
Spheres, including premises, whether government-owned or rented,
equipment, registers, files and computer programs. The treatment of
property which serves the offices transferred to the Palestinian
Authority as well as offices which are not so transferred will be as
mutually agreed between the two sides, such as on the basis of sharing
or exchange.
5. The coordination of the transfer of powers and responsibilities
pursuant to this Article shall also include a joint review of the
Civil Administration contracts the duration of which extends beyond
the date of the transfer with a view to deciding which contracts will
remain in force and which will be terminated.
ARTICLE V
ADMINISTRATION OF THE TRANSFERRED OFFICES
1. The Palestinian Authority shall be fully responsible for the proper
functioning of the offices included in the Spheres and for the
management of their personnel in all aspects, including employment and
placement of employees, payment of their salaries and pensions and
ensuring other employee rights.
2. The Palestinian Authority will continue to employ Palestinian Civil
Administration employees currently employed in the offices included in
each Sphere and shall maintain their rights.
3. The main office of each of the Spheres will be situated in the Jericho
Area or in the Gaza Strip. The Palestinian Authority will operate the
existing subordinate offices in the West Bank. The two sides may agree
on the establishment of additional subordinate offices in the West
Bank, if necessary, in such locations as mutually agreed.
4. The Palestinian Authority has the right to coordinate its activities
in each of the Spheres with other Spheres in which it is empowered.
ARTICLE VI
RELATIONS BETWEEN THE TWO SIDES
1. With regard to each Sphere, the Palestinian Authority shall coordinate
with the Civil Administration on issues relating to other spheres in
which the Palestinian Authority is not empowered.
2. The military government and its Civil Administration shall assist and
support the Palestinian Authority in promoting the effective exercise
of its powers and responsibilities. In addition, the military
government and its Civil Administration shall, in exercising their own
powers and responsibilities, take into account the interests of the
Palestinian Authority and do their utmost to remove obstacles to the
effective exercise of powers and responsibilities by the Palestinian
Authority.
3. The Palestinian Authority shall prevent any activities with a military
orientation within each of the Spheres and will do its utmost to
maintain decorum and discipline and to avoid disruption in the
institutions under its responsibility.
4. The Palestinian Authority will notify the military government and its
Civil Administration and will coordinate with them regarding any
planned public large-scale events and mass gatherings within the
Spheres.
5. Nothing in this Agreement shall affect the continued authority of the
military government and its Civil Administration to exercise their
powers and responsibilities with regard to security and public order,
as well as with regard to other spheres not transferred.
ARTICLE VII
LEGISLATIVE POWERS OF THE PALESTINIAN AUTHORITY
1. The Palestinian Authority may promulgate secondary legislation
regarding the powers and responsibilities transferred to it. Such
legislation includes amendments and changes to the existing laws,
regulations and military orders specified in Appendix A to each Annex.
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 Israel which may, within a period of thirty (30) days,
notify the Palestinian Authority that it opposes such legislation for
any of the following reasons:
a. it exceeds the powers and responsibilities transferred to the
Palestinian Authority;
b. it is inconsistent with the provisions of this Agreement; or
c. it otherwise affects legislation or powers and responsibilities
which were not transferred to the Palestinian Authority.
4. Where Israel opposes proposed legislation, it shall specify the reason
for the opposition.
5. If Israel has no reservations concerning the proposed legislation, it
shall accordingly notify the Palestinian Authority at the earliest
opportunity. If at the end of the thirty-day period Israel has not
communicated any opposition concerning the proposed legislation, such
legislation shall enter into force.
6. The Palestinian Authority may, in the event of opposition to the
proposed draft legislation, submit a new draft or request a review by
the Legislation Subcommittee established under the Gaza-Jericho
Agreement.
7. The Legislation Subcommittee shall attempt to reach a decision on the
merits of the matter within thirty days. If the Legislation
Subcommittee is unable to reach a decision within this period, the
Palestinian Authority shall be entitled to refer the matter to the
Joint Liaison Committee. The Joint Liaison Committee shall consider
the matter immediately and will attempt to settle it within thirty
days.
8. Where, upon communicating to Israel proposed legislation consisting of
detailed technical regulations, the Palestinian Authority states that
such regulations fulfill the requirements of paragraph 3 above and
requests a speedy review, Israel shall immediately respond to such a
request.
9. Legislation regarding the West Bank shall be published as a separate
part of any publication of legislation regarding the Gaza Strip and
the Jericho Area issued by the Palestinian Authority.
ARTICLE VIII
LAW ENFORCEMENT
1. The Palestinian Authority may bring disciplinary proceedings
concerning persons it employs in the West Bank before disciplinary
tribunals operating in the Gaza Strip or the Jericho Area.
2. The Palestinian Authority may, within each of the Spheres, authorize
employees to act as civilian inspectors to monitor compliance with
laws and regulations in that Sphere, within the powers and
responsibilities transferred to the Palestinian Authority. Such
inspectors shall operate in each Sphere separately and shall not be
organized into a central unit. These inspectors shall not wear
uniforms or carry arms, and shall not in any other way have the nature
of a police force. They shall be required to carry the identification
documentation referred to in paragraph 3 below. The number of
employees to be authorized as civilian inspectors shall be agreed upon
by both sides. The names of these employees shall be notified to
Israel and, where these employees enjoy privileges pursuant to
subparagraph 3 below, shall be agreed upon by both sides.
3. The Palestinian Authority shall issue the civilian inspectors in the
West Bank with identification documentation specifying the office in
which they are employed. Such documentation shall be used for
identification and will not grant privileges, except those agreed in
the Civil Affairs Coordination and Cooperation Committee referred to
in Article X below, or immunities. This committee shall determine the
format of the identification documenation.
4. Except as specifically provided in this Agreement, all powers and
responsibilities regarding law enforcement, including investigation,
judicial proceedings and imprisonment, will continue to be under the
responsibility of the existing authorities in the West Bank.
ARTICLE IX
RIGHTS, LIABILITIES AND OBLIGATIONS
1. a. The transfer of powers and responsibilities to the Palestinian
Authority under this Agreement will include all related rights,
liabilities and obligations arising with regard to acts or
omissions which occurred prior to the transfer. Israel and the
Civil Administration 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 or the
Civil Administration 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 or the Civil
Administration 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 or the Civil
Administration by any court or tribunal in respect of such a
claim, the Palestinian Authority shall, once the award has been
paid by Israel, 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.
g. Notwithstanding subparagraphs 1.d through 1.f above, Israel may,
pursuant to agreement within the Legal Subcommittee of the CAC
established under the Gaza-Jericho Agreement, request an Israeli
court or tribunal to dismiss a claim brought before it and, with
regard to a pending claim, dismiss the claim and transfer the
proceedings to a local court or tribunal.
h. Where a claim has been so transferred or where a new claim has
been brought in a local court or tribunal subsequent to the
dismissal of the claim pursuant to subparagraph 1.g above, the
Palestinian Authority shall defend it and, in accordance with
subparagraph 1.a above, in the event that an award is made for
the plaintiff, shall pay the amount of the award.
i. The Legal Subcommittee referred to in subparagraph 1.g above
shall agree on arrangements for the transfer of proceedings from
Israeli courts or tribunals pursuant to subparagraph 1.g above
and, where necessary, for the provision of legal assistance by
Israel to the Palestinian Authority in defending such claims.
2. In accordance with paragraph 1 above:
a. The Palestinian Authority may bring legal proceedings in respect
of any acts or omissions relating to powers and responsibilities
transferred under this Agreement which occurred prior to the date
of the transfer. Israel shall provide the Palestinian Authority
with the legal assistance necessary to bring such proceedings.
b. The Palestinian Authority may collect any taxes due under Annexes
V and VI on the date of the transfer of powers and
responsibilities in respect of these taxes, and shall assume
responsibility for the payment of any rebates or refunds.
3. Subject to the provisions of this Article, the transfer of powers and
responsibilities 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 X
LIAISON AND COORDINATION
1. The Joint Civil Affairs Coordination and Cooperation Committee
established in accordance with the Gaza-Jericho Agreement,
(hereinafter "the CAC"), will deal with all issues of mutual concern
regarding this Agreement.
2. The operation of the CAC shall not impede daily contacts between
representatives of the Civil Administration and the Palestinian
Authority in all matters of mutual concern.
ARTICLE XI
BUDGETARY ISSUES
1. The military government and its Civil Administration shall provide the
Palestinian Authority with full information concerning the budget of
each Sphere.
2. The Palestinian Authority shall immediately employ personnel who will
promptly begin the process of becoming acquainted with the current
budget issues. On the date of the transfer of powers and
responsibilities in each of the Spheres, these personnel will assume
responsibility for all accounts, assets and records on behalf of the
Palestinian Authority.
3. Israel shall continue to provide the services of Israeli experts
currently employed in the fields of income tax and VAT to ensure a
smooth transition and efficient establishment of the taxation system
of the Palestinian Authority. The terms of their employment shall be
agreed upon by the two sides.
4. The Palestinian Authority will do its utmost to establish its revenue
collection system immediately with the intent of collecting direct
taxes and VAT.
5. The two sides will jointly approach the donor countries during the
upcoming meetings of the Consultative Group and of the Ad Hoc Liaison
Committee, scheduled for September 8 through 10, 1994 in Paris, with a
request to finance the shortfall that may be created in the collection
of the direct taxes and the VAT during the initial period while the
Palestinian Authority establishes its own revenue collection system.
6. The two sides will meet no later than three days after the conclusion
of these meetings in order to decide on the date of transfer of powers
and responsibilities in the remaining Spheres, based, among other
things, on the response of the donor countries to the joint request.
7. The CAC will provide the donor countries, when necessary, with
information to help adjust the allocation of contributions as a result
of variations in tax collection.
8. The Palestinian Authority shall also assume full responsibility for
any additional expenditures beyond the agreed budget which is attached
as Schedule 1, as well as for any shortfall in tax collection that is
not actually covered by the donor countries.
9. If actual revenues from the Spheres, including the donor
contributions, exceed the budgeted revenues, the excess shall be
applied to development of the Spheres.
10. The inclusion of the sphere of VAT in the spheres to be transferred to
the Palestinian Authority shall constitute the adjustment referred to
in paragraph (3) of the Agreed Minute to Article VI(2) of the
Declaration of Principles, and no further adjustment shall be
required.
ARTICLE XII
MUTUAL CONTRIBUTION TO PEACE AND RECONCILIATION
With regard to each of the Spheres, Israel and the Palestinian Authority
will ensure that their respective systems contribute to the peace between
the Israeli and Palestinian peoples and to peace in the entire region, and
will refrain from the introduction of any motifs that could adversely
affect the process of reconciliation.
ARTICLE XIII
FINAL CLAUSES
1. This Agreement shall enter into force on the date of its signing.
2. The arrangements established by this Agreement are preparatory
measures and shall remain in force until and to the extent superseded
by the Interim Agreement or by any other agreement between the
Parties.
3. 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.
4. 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.
5. The Gaza Strip and the Jericho Area shall continue to be an integral
part of the West Bank and the Gaza Strip. The status of the West Bank
shall not be changed for the period of this Agreement. Nothing in this
Agreement shall be considered to change this status.
6. The Preamble to this Agreement and the Annexes, Appendices and
Schedules attached hereto, shall constitute an integral part hereof.
Done at Erez this twenty-ninth day of August 1994.
For the
Government of the State of Israel
For the PLO
List of Annexes
* Schedule 1 - Six-month Budget for the Spheres
* Annex I - Protocol Concerning Preparatory Transfer of Powers and Responsibilities in the Sphere of Education and Culture
* Annex II - Protocol Concerning Preparatory Transfer of Powers and Responsibilities in the Sphere of Health
* Annex III - Protocol Concerning Preparatory Transfer of Powers and Responsibilities in the Sphere of Social Welfare
* Annex IV - Protocol Concerning Preparatory Transfer of Powers and Responsibilities in the Sphere of Tourism
* Annex V - Protocol Concerning Preparatory Transfer of Powers and Responsibilities in the Sphere of Direct Taxation
* Annex VI - Protocol Concerning Preparatory Transfer of Powers and Responsibilities in the Sphere of VAT on Local Production