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

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