Al mashriq - The Levant

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                       Israel Information Service Gopher
     Information Division              Israel Foreign Ministry - Jerusalem
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                                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
        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 shall
        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 by 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, including 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 initially 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.
.

----------------

al@mashriq

980606/bl