Al mashriq - The Levant

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                                ANNEX II

                   PROTOCOL CONCERNING CIVIL AFFAIRS



                               Article I

               Liaison and Coordination in Civil Matters


A.  Joint Civil Affairs Coordination and Cooperation Committee

    1.  A Joint Civil Affairs Coordination and Cooperation Committee
        (hereinafter "the CAC") is hereby established.

    2.  The functions of the CAC are to coordinate between the
        Palestinian Authority on one hand, and Israel and the Civil
        Administration that shall continue to function in the rest of
        the West Bank on the other hand, concerning the following
        day-to-day matters:

        a.  Civil matters, including issues concerning the transfer of
            powers and responsibilities from the Israeli military
            government and its Civil Administration to the Palestinian
            Authority.

        b.  Matters arising with regard to roads, power lines and other
            infrastructure which require coordination according to this
            Agreement.

        c.  Questions regarding passage to and from the Gaza Strip and
            the Jericho Area and safe passage between the Gaza Strip and
            the Jericho Area, including crossing points and
            international crossings.

        d.  Day-to-day contacts between the two sides as regards matters
            such as employment permits, hospitalization, transportation
            licensing, transfer of information, etc.

        e.  Joint projects, matters of mutual interest and other matters
            requiring coordination and cooperation.

    3.  The CAC shall be comprised of an equal number of representatives
        from Israel and from the Palestinian Authority, and shall
        convene at least once a month unless otherwise agreed.

        Each side may initiate the convening of a special meeting on
        short notice.

    4.  The CAC shall determine by agreement its mode of procedure.

    5.  Matters of principle and policy not settled within the CAC shall
        be passed on to the Joint Israeli-Palestinian Liaison Committee.

B.  Joint Regional Civil Affairs Subcommittees

    1.  The CAC shall establish two Joint Regional Civil Affairs
        Subcommittees (hereinafter "the Subcommittees") for the Gaza
        Strip and the Jericho Area respectively.

    2.  Each Subcommittee shall deal with the day-to-day civil affairs
        matters as detailed in paragraph A.2 above.

        The Jericho Area Subcommittee shall also coordinate the
        relations between the Palestinian Authority and the military
        government and Civil Administration in the rest of the West
        Bank.

    3.  Each Subcommittee may establish ad hoc working groups if and
        when the need arises.

    4.  Each Subcommittee shall be comprised of an equal number of
        representatives from Israel and from the Palestinian Authority
        and shall convene no less than once every two weeks.

C.  General

    1.  Means of communication shall be set up with a view to ensuring
        efficient and direct contact 24 hours a day, in order to deal
        with any urgent matter arising in the civil affairs field.

    2.  Each side shall inform the other of its representatives to each
        committee prior to a meeting. Meetings of the CAC and its
        subcommittees shall be organized and hosted by the two sides
        alternately unless otherwise agreed.

    3.  The provisions detailed above shall not impede daily contacts
        between representatives of Israel and of the Palestinian
        Authority in all matters of mutual concern.




                               Article II

             Transfer of Powers and Responsibilities of the
                          Civil Administration


A.  1.  The transfer of powers and responsibilities from the Israeli
        military government and its Civil Administration to the
        Palestinian Authority shall be coordinated through the CAC and
        implemented in accordance with the following arrangements in a
        smooth, peaceful and orderly manner.

    2.  Preparations for the transfer of such powers and
        responsibilities shall commence immediately upon the signing of
        this Agreement, and shall be completed within 21 days.

        a.  The Israeli authorities shall provide all necessary
            assistance to the Palestinian Authority, including access to
            offices, registers, records, systems and equipment and all
            necessary information, data and statistics required for the
            transfer of powers and responsibilities.

        b.  Israel shall provide the Palestinian Authority with all the
            details as described in subparagraph 38 below.

    3.  On the date fixed for the transfer of powers and
        responsibilities, Israel shall transfer from the possession of
        the Israeli military government and its Civil Administration to
        the Palestinian Authority offices, budgetary allocations,
        financial funds and accounts, equipment, registers, files,
        computer programs and other movable property necessary for its
        functioning.

B.  All powers and responsibilities of the Civil Administration shall be
    transferred to the Palestinian Authority in the Gaza Strip and the
    Jericho Area, in accordance with the following provisions:

    1.  Interior Affairs:

        This sphere includes, inter alia, municipal affairs, licensing
        of newspapers and publications, censorship of films and plays
        and appointment of Mukhtars. In the Gaza Strip, this sphere
        shall also include fire fighting and Ottoman Societies.

    2.  Fisheries:

        a.  This sphere includes, inter alia, licensing of fishermen,
            marine agriculture and vessels' permits.

        b.  Security restrictions are dealt with in Annex I, Article XI.


    3.  Surveying:

        This sphere includes, inter alia, licensing of surveyors and
        performing surveys in areas falling within the Palestinian
        Authority's jurisdiction.

    4.  Statistics:

        a. The transfer of powers and responsibilities in this sphere
        includes inter alia transfer of research reports and
        publications prepared by the Department of Statistics.

        b. The application and validity of censuses which may be
        conducted by the Palestinian Authority shall be subject to the
        provisions of subparagraph 27.l below.

        c. Methods of cooperation regarding the collection of data on
        the movement of goods, services and labor between Israel and the
        Gaza Strip and the Jericho Area is dealt with in Annex IV.

    5.  Comptrol

    6.  Civil Administration Employees:

        The Palestinian Authority assures that it shall keep employing
        the present Palestinian Civil Administration employees in the
        Gaza Strip and the Jericho Area and shall maintain their rights.

    7.  Legal Administration:

        a.  This sphere includes, inter alia, administration of the
            Palestinian judiciary system in the Gaza Strip and the
            Jericho Area, licensing of lawyers, registration of
            companies and registration of patents and trademarks in
            these areas.

        b.  Legal issues regarding commercial and civil jurisdiction, as
            well as legal assistance, are dealt with in Annex III.

    8.  Labor:

        a.  Israel and the Palestinian Authority shall establish agreed
            procedures for mutual recognition of professional
            certificates and diplomas.

        b.  Restrictions regarding supervision and licensing of the
            production and use of explosives and gunpowder shall be in
            accordance with Annex I, Article VIII, paragraph 8.

    9.  Education:

        Israel and the Palestinian Authority shall ensure that their
        respective education systems contribute to the peace between
        Israel and the Palestinian people and peace in the entire
        region.

    10. Social Welfare:

        This sphere includes, inter alia, registration and supervision
        of charitable societies.

    11. Assessments

    12. Housing

    13. Tourism:

    a.  This sphere includes, inter alia, the licensing of hotels,
        souvenir shops and travel agents.

    b.  Tourism policy in general, and coordination between Israel and
        the Palestinian Authority, are dealt with in Annex IV.

    14. Parks:

        Transfer of powers and responsibilities in this sphere is
        without prejudice to the provisions applying to religious and
        archaeological sites.

    15. Religious Affairs:

        a.  The Palestinian Authority shall ensure free access to all
            holy sites in the Gaza Strip and the Jericho Area determined
            by the respective religious sects and shall protect these
            sites.

        b.  The above is without prejudice to the arrangements with
            regard to archaeological sites as set out in subparagraph 30
            below.

        c.  Visitors to holy sites shall behave according to accepted
            rules of behavior in holy sites.

        d.  Religious sects shall inform the Palestinian Authority of
            their respective holy sites in the Gaza Strip and the
            Jericho Area. For the purposes of this paragraph, the
            relevant authority regarding Jewish holy sites shall be the
            Israeli Government.

        e.  A list of the existing Jewish holy sites is attached as
            Appendix A attached to this Annex.

        f.  Israel declares that no property (including lands, buildings
            and institutions) belonging to the Islamic Waqf in the Gaza
            Strip and the Jericho Area was taken by the military
            government or its Civil Administration, except such property
            that might have been put to use for public purposes such as
            schools and public roads.

        g.  Pending the entry into force of the Interim Agreement the
            holy site of Nebi Mousa shall be under the auspices of the
            Palestinian Authority for religious purposes.

        h.  During religious events that take place three times a year
            and other special occasions that shall be coordinated with
            the Israeli authorities, Palestinians shall have the right
            to religious pilgrimage to the al-Maghtas under the
            Palestinian flag.

        i.  Religious affairs in the "Shalom Al Israel" synagogue in
            Jericho shall be under the auspices of the Israeli
            authorities.

    16. Employee Pensions:

        a.  This sphere includes, inter alia, the pension rights of
            employees of the Civil Administration as well as employees
            of other bodies who are entitled to pensions from the Civil
            Administration in the Gaza Strip and the Jericho Area.

        b.  As part of its powers and responsibilities, the Palestinian
            Authority shall assume the Civil Administration's statutory
            and contractual obligations to Palestinian employees,
            regarding pensions and their payment.

        c.  In the Gaza Strip, upon the transfer of powers and
            responsibilities, the Palestinian Authority shall assume
            prevailing powers and obligations, according to the existing
            pension system.

            Israel shall transfer to the Palestinian Authority, or to a
            Pension and Insurance Fund if established, the net income of
            the Fund (all payments plus interest after deduction of
            pension payments and running expenses) as accumulated at the
            Israel Ministry of Finance.

        d.  In the Jericho Area, the Palestinian Authority shall assume
            responsibility for payment of a budgetary pension.

        e.  After the transfer of authorities in this sphere, if Israel
            is sued by any employee or his/her heirs for any sums due to
            him/her as a pension, the Palestinian Authority shall
            reimburse Israel the full amount awarded the employee or
            his/her heirs by any court or tribunal.

        f.  Where legal proceedings are brought in respect of such a
            claim, Israel will notify the Palestinian Authority and
            enable it to participate in defending the claim.

    17. Commerce and Industry:

        a.  This sphere includes, inter alia, licensing of crafts and
            industries, supervision of commodities and services and of
            weights and measures, and the regulation of commerce.

        b.  The Palestinian Authority shall make arrangements to ensure
            safety conditions for the production, use and transportation
            of fuel and gas.

        c.  The production and use of weapons, ammunition or explosives
            are dealt with in Annex I, Article VIII, paragraph 8.

        d.  The economic relations between Israel and the Gaza Strip and
            the Jericho Area, and questions relating to imports to and
            exports from the Gaza Strip and the Jericho Area, are dealt
            with in Annex IV.

        e.  Matters regarding the environment are dealt with in
            subparagraph 35. below.

    18. Health:

        a.  This sphere includes, inter alia, the health insurance
            system.

        b.  The Palestinian Authority shall apply the present standards
            of vaccination of Palestinians and shall improve them
            according to internationally-accepted standards in the
            field.

        c.  The Palestinian Authority shall inform Israel of any Israeli
            hospitalized in a Palestinian hospital as outlined in Annex
            I, Article II. Arrangements for moving such hospitalized
            Israelis shall be agreed upon in the CAC.

        d.  Israel and the Palestinian Authority shall agree on
            arrangements regarding treatment and hospitalization of
            Palestinians in Israeli hospitals.

        e.  Israel and the Palestinian Authority shall exchange
            information regarding epidemics and contagious diseases and
            shall develop methods for exchange of medical files and
            documents.

        f.  Import of pharmaceuticals to the Gaza Strip and the Jericho
            Area through Israeli sea ports and airports shall be in
            accordance with general arrangements concerning imports, as
            dealt with in Annex IV.

    19. Transportation:

        a.  This sphere includes, inter alia, licensing of public
            transportation.

        b.  In exercising its powers and responsibilities, the
            Palestinian Authority shall make appropriate arrangements
            for the continued operation of existing Israeli public
            transportation lines to the Settlements.

        c.  High and appropriate international transportation standards
            shall be applied in the Gaza Strip and the Jericho Area.

        d.  Regulations in the transportation sphere shall continuously
            adapt to improvements in international standards due to the
            dynamics of technology and environmental considerations. Due
            consideration shall be given to compatibility between the
            standards of the Palestinian Authority and of Israel.

        e.  Regulations in the transportation field, including traffic
            signalization, shall be applied with a view to assuring the
            safety of all persons, to contributing to economic growth
            and to protecting the common environment.

        f.  Regarding meteorology, there shall be mutual assistance and
            cooperation between the Israeli and the Palestinian weather
            forecasting offices.

        g.  The issue of establishing transport and communication lines
            to and from the Jericho Area and the Gaza Strip to Israel
            and the West Bank is dealt with in Appendix B attached to
            this Annex.

        h.  The arrangements regarding the transfer of authorities
            concerning maritime activity and aviation are dealt with in
            Annex I.

    20. Agriculture:

        a.  Israel and the Palestinian Authority shall do their utmost
            to preserve and improve the veterinary standards.

        b.  Israel and the Palestinian Authority shall take all measures
            to reach equivalent and compatible standards regarding
            animal disease control, including mass vaccination of
            animals and avians, quarantines, "stamping out" measures and
            residue control standards.

        c.  Mutual arrangements shall be made to prevent the
            introduction and spread of plant pests and diseases, for
            their eradication, as well as arrangements concerning
            residue control standards in plant products.

        d.  The veterinary and the plant protection authorities of
            Israel and the Palestinian Authority shall coordinate and
            regularly exchange information regarding animal diseases, as
            well as plant pests and diseases, and shall establish a
            mechanism for immediate notification of the outbreak of such
            diseases.

        e.  Economic relations in the agricultural sphere between Israel
            and the Palestinian Authority, including transfer of
            agricultural goods, are dealt with in Annex IV.

        f.  Experts from both sides shall discuss the details of the
            arrangements regarding veterinary and plant protection
            within the CAC.

    21. Employment:

        a.  Procedures for distributing employment permits to work in
            Israel and in the Settlements shall be agreed upon between
            Israel and the Palestinian Authority.

        b.  Arrangements concerning the rights of employees and workers
            from the Gaza Strip and the Jericho Area working in Israel
            are dealt with in Annex IV.

    22. Land Registration:

        All powers and responsibilities regarding land registration will
        be transferred to the Palestinian Authority, except the
        Settlements and the Military Installation Area.

    23. Nature Reserves:

        a.  Israel and the Palestinian Authority shall safeguard and
            preserve nature in general and shall protect species of
            animals, plants and flowers of special breeds.

        b.  The Palestinian Authority shall respect the existing status
            of declared nature reserves and shall safeguard them.

    24. Electricity:

        a.  The Palestinian Authority shall continue, as appropriate, to
            buy electric power from the Jerusalem Electricity Company
            for the Jericho area.

        b.  Pending the establishment by the Palestinian Authority of an
            alternative system for the Gaza Strip, it shall temporarily
            buy electric power from the Israel Electric Company (IEC),
            and to that end shall enter into a commercial agreement with
            the IEC. This Agreement shall relate to the settling of
            debts; to IEC property; and to the maintenance of lines to
            Palestinian customers.

        c.  Without derogating from the powers and responsibilities
            transferred to the Palestinian Authority above, the
            Palestinian Authority shall enable the supply of electricity
            to the Gush Katif settlement area and the Kfar Darom
            settlement by the IEC, as well as the maintenance by the IEC
            of the electricity lines to these locations and of the
            electricity lines crossing the Jericho Area.

            The means of supplying electricity and the modalities of
            maintenance of lines to the Gush Katif settlement area and
            the Kfar Darom settlement shall be arranged by means of a
            commercial agreement between the Palestinian Authority and
            the IEC.

        d.  Environmental matters relating to electricity shall be
            governed by the provisions regarding environmental
            protection as set forth in subparagraph 35. below.

    25. Public Works:

        a.  This sphere includes, inter alia, the Housing Department in
            the Gaza Strip.

        b.  In principle, maintenance and repairs of the Lateral Roads
            leading to the Settlements and the Military Installation
            Area shall be carried out by the Palestinian Authority.

        c.  Where such maintenance and repairs have not been effected by
            the Palestinian Authority within a reasonable time, the
            Palestinian Authority shall request, through the CAC, that
            Israel effect such maintenance and repairs.

        d.  The Palestinian Authority shall notify and update Israel
            through the CAC of any activity which may disturb the
            regular flow of traffic on roads, including road works,
            repairs and large-scale construction in close proximity to
            roads.

    26. Postal Services:

        a.  This sphere includes, inter alia, the management of post
            offices and postal delivery in the Gaza Strip and the
            Jericho Area.

        b.  The Palestinian Authority may issue postage stamps, postal
            stationery (hereinafter "stamps") and date stamps, subject
            to the following provisions:

            (1) Stamps shall include only the term "the Palestinian
                Authority", the face value and the subject.

            (2) The face value shall be stated only in the agreed legal
                currency circulating in the Gaza Strip and the Jericho
                Area as detailed in Annex IV.

            (3) The design, symbols and subjects of stamps, postal
                stationery and date stamps issued by the Palestinian
                Authority will be in accordance with the principles
                outlined in Article XII of the Agreement.

            (4) The date stamp shall include only the name of the office
                responsible for the cancelling of the stamp and the date
                of that operation.

        c.  Both sides will coordinate and cooperate in establishing
            postal rates for international postal services in such a way
            as to prevent mutual economic harm to each other.

        d.  The modalities and arrangements for sending and receiving
            all postal items, including parcels, between the Gaza Strip
            and the Jericho Area and Israel and the West Bank will be
            arranged by means of a commercial agreement between the
            Israel Postal Authority and the Civil Administration
            respectively on one side, and the Palestinian Authority on
            the other.

        e.  The modalities and arrangements for sending and receiving
            all postal items, including parcels, between the Gaza Strip
            and the Jericho Area and other countries will be arranged by
            means of a commercial agreement between the Israel Postal
            Authority and the Palestinian Authority, further modalities
            will be discussed in the CAC.

        f.  The customs principles detailed in Annex IV shall also apply
            to postal items, including parcels, transmitted to the Gaza
            Strip and the Jericho Area.

    27. Population Registry and Documentation:

        a.  The Palestinian Authority shall receive the existing
            population registry in the Gaza Strip and the Jericho Area,
            as well as files pertaining to the residents of these areas.

        b.  The existing identity card of the present residents of the
            Gaza Strip and the Jericho Area, as well as of new residents
            therein, shall be substituted by a new identity card.

        c.  Possession of the aforementioned identity card and, whenever
            necessary, of an Israeli entrance permit, shall be required
            for entry into Israel by residents of the Gaza Strip and the
            Jericho Area.

        d.  Safe passage between the Gaza Strip and the Jericho Area of
            residents of these areas shall require the possession of the
            aforementioned identity card and any other necessary
            documents.

        e.  In order to ensure efficient passage procedures and to avoid
            discrepancies, the Palestinian Authority shall update Israel
            on a regular basis, through the CAC, of every change in its
            registry, with a view to enabling Israel to maintain an
            updated and current registry.

        f.  Exit abroad through the passages or through Israeli points
            of exit by residents of the Gaza Strip and the Jericho Area
            shall only be possible by means of an agreed passport/travel
            document.

            This title shall be written on the cover in letters of equal
            size.

        g.  (1) Persons from countries not having diplomatic relations
                with Israel who visit the Gaza Strip and Jericho Area
                shall be required to obtain a special visitor's permit
                to be issued by the Palestinian Authority and cleared by
                Israel. Requests for such permits shall be filed by a
                relative of the visitor residing in the areas, through
                the Palestinian Authority, or by the Palestinian
                Authority itself.

            (2) Visitors to the Gaza Strip and the Jericho Area shall be
                permitted to remain in these areas for a period of up to
                three months granted by the Palestinian Authority and
                cleared by Israel.

                The Palestinian Authority may extend this three month
                period for an additional period of up to four months and
                shall inform Israel about the extension. Any further
                extensions require the approval of Israel.

        h.  Persons from countries having diplomatic relations with
            Israel who visit the Gaza Strip and the Jericho Area shall
            either be required to obtain the aforementioned visitor's
            permit or to hold a valid passport and an Israeli visa, when
            required.

        i.  Entry into the Gaza Strip or the Jericho Area of
            non-resident Palestinians who are visitors to these areas
            shall be handled by the Palestinian Authority in accordance
            with subparagraphs g. and h. above.

        j.  The Palestinian Authority shall ensure that visitors
            referred to above shall not overstay the duration of their
            entry permit and authorized extensions.

        k.  Special VIP certificates may be issued as detailed in Annex
            I.

        l.  The Palestinian Authority may grant permanent residency in
            the Gaza Strip and the Jericho Area with the prior approval
            of Israel.

        m.  The format of the aforementioned identity card and
            passport/travel document as well as arrangements of the
            implementation of the provisions set forth in this Article
            are detailed in Appendix C attached to this Annex.

    28. Government and Absentee Land and other Immovables:

        a.  All powers and responsibilities of the Custodian of Absentee
            Land and Immovables and powers and responsibilities for
            governmental land and other immovables in the Gaza Strip and
            the Jericho Area shall be transferred to the Palestinian
            Authority in accordance with the following.

        b.  During the interim period, the transfer of powers and
            responsibilities of the Custodians of Absentee and
            Government Property in the Gaza Strip and the Jericho Area,
            other than those relating to movable property, shall not
            apply to land and other immovables within the Settlements
            and the Military Installation Area. The issue shall be dealt
            with within the permanent status negotiations.

        c.  The status of land and other immovables which, prior to June
            1967, were in the custody of the Jordanian Custodian of
            Enemy Property in the West Bank or under the management of
            the Director General appointed in accordance with Order no.
            25 of 31.3.50 in the Gaza Strip, shall be dealt with in the
            permanent status negotiations. Pending those negotiations,
            the status quo of such land and other immovables shall be
            maintained.

    29. Telecommunications:

        a.  The Electromagnetic Sphere

            (1) The frequencies detailed in the telecommunications
                technical schedule attached to this Annex as Appendix D
                are assigned for the use of the Palestinian Authority in
                the Gaza Strip and the Jericho Area, to satisfy its
                present needs.

            (2) Conditions for the use of these frequencies as well as
                details concerning power, timing, direction, antenna
                radiation pattern and transmission methods, are also
                formulated in the aforementioned Appendix.

            (3) The frequencies shall serve, inter alia, a television
                network and a radio network.

            (4) The Palestinian Authority shall ensure that only the
                above frequencies shall be used and that it shall not
                disturb or interfere with Israel radio communications
                activity, and Israel shall ensure that there shall be no
                disturbance or interference with those frequencies.

            (5) The compatibility of the standards of electromagnetic
                and telecommunications systems and equipment imported or
                installed for use in the Gaza Strip and the Jericho
                Area, as well as the standards of operation of such
                equipment, are as agreed upon and formulated in the
                attached Appendix D.

            (6) The CAC shall establish, as the need arises, a joint
                committee of technical experts from both sides to
                discuss and deal with any issue arising out of this
                Agreement including the fulfillment of future needs of
                the Palestinian Authority.

        b.  Telecommunications

            (1) Pending the establishment by the Palestinian Authority
                of an alternative telecommunications system in the Gaza
                Strip and the Jericho Area, the existing system of
                telephone and other related communication services
                including international telecommunications in the Gaza
                Strip and the Jericho Area shall continue through "Bezeq
                - the Israel Telecommunications Corp. Ltd." (hereinafter
                "Bezeq") and to that end, the Palestinian Authority
                shall enter into a commercial agreement with Bezeq.

            (2) Without derogating from the powers and responsibilities
                of the Palestinian Authority, the Palestinian Authority
                shall enable the supply of telecommunications services
                to the Settlements and the Military Installation area by
                Bezeq, as well as the maintenance by Bezeq of the
                telecommunications infrastructure serving them or
                infrastructure crossing the Gaza Strip and the Jericho
                Area.

    30. Archaeology:

        a.  The Palestinian Authority shall protect and guard all
            archaeological sites in the Gaza Strip and the Jericho Area,
            respect academic freedom in particular the freedom
            publishing research work based on excavations and shall take
            all necessary steps against theft of archaeological
            artifacts and illegal trade in them.

        b.  The CAC shall establish a joint committee of experts from
            both sides to deal with all archaeological issues of common
            interest. Actions which may affect the sites detailed in
            Appendix A shall also be referred to this committee for
            discussion and recommendation.

            The Palestinian Authority shall respect such
            recommendations.

            Disagreements on this matter within the joint committee of
            experts shall be referred to the CAC to be dealt with in
            accordance with the provisions of this Agreement.

        c.  Subject to academic considerations, and in accordance with
            the law, when the Palestinian Authority grants excavation
            licenses to archaeologists, researchers and academics
            interested in excavating in the Gaza Strip and Jericho Area,
            it shall do so without discrimination.

        d.  The Palestinian Authority shall ensure free access to
            archaeological sites.

        e.  With due consideration to the Palestinian demand that Israel
            shall return all archaeological artifacts found in the Gaza
            Strip and Jericho area since 1967, this issue shall be dealt
            with in the negotiations on the final status.

            For this purpose, Israel shall provide a list of
            archaeological sites for which excavation licenses were
            granted since 1967, including, where available, a general
            description of the artifacts found therein, and their
            location.

    31. Water and Sewage

        a.  All water and sewage (hereinafter referred to as "water")
            systems and resources in the Gaza Strip and the Jericho Area
            shall be operated, managed and developed (including
            drilling) by the Palestinian Authority, in a manner that
            shall prevent any harm to the water resources.

            b. As an exception to subparagraph a., the existing water
            systems supplying water to the Settlements and the Military
            Installation Area, and the water systems and resources
            inside them continue to be operated and managed by Mekoroth
            Water Co.

        c.  All pumping from water resources in the Settlements and the
            Military Installation Area, shall be in accordance with
            existing quantities of drinking water and agricultural
            water.

            Without derogating from the powers and responsibilities of
            the Palestinian Authority, the Palestinian Authority shall
            not adversely affect these quantities.

            Israel shall provide the Palestinian Authority with all data
            concerning the number of wells in the Settlements and the
            quantities and quality of the water pumped from each well,
            on a monthly basis.

        d.  Without derogating from the powers and responsibilities of
            the Palestinian Authority, the Palestinian Authority shall
            enable the supply of water to the Gush Katif settlement area
            and the Kfar Darom settlement by Mekoroth, as well as the
            maintenance by Mekoroth of the water systems supplying these
            locations and of water lines crossing the Jericho Area.

        e.  The Palestinian Authority shall pay Mekoroth for the cost of
            water supplied from Israel and for the real expenses
            incurred in supplying water to the Palestinian Authority.

        f.  All relations between the Palestinian Authority and Mekoroth
            shall be dealt with in a commercial agreement.

        g.  The Palestinian Authority shall take the necessary measures
            to ensure the protection of all water systems in the Gaza
            Strip and the Jericho Area.

        h.  Upon the signing of this Agreement, the two Parties shall
            establish a subcommittee to deal with all issues of mutual
            interest including the exchange of all data relevant to the
            management and operation of the water resources and systems
            and mutual prevention of harm to water resources.

        i.  The subcommittee shall agree upon its agenda and upon the
            procedures and manner of its meetings, and may invite
            experts or advisers as it sees fit.

    32. Planning and Zoning:

        a.  Authorities, powers and responsibilities in this sphere,
            except in the Settlements and the Military Installation
            Area, shall be transferred to the Palestinian Authority
            subject to the following.

        b.  Planning schemes, bylaws and regulations in effect in the
            Gaza Strip and the Jericho Area prior to the signing of this
            Agreement shall remain in force, unless amended or abrogated
            in accordance with this Agreement.

        c.  The Palestinian Authority may amend, abrogate or promulgate
            planning schemes, and issue licenses and exemptions within
            its jurisdiction, provided that such acts are consistent
            with the provisions of this Agreement.

        d.  As part of its procedure, the Palestinian Authority shall
            publish planning schemes in the form of law. The Palestinian
            Authority shall provide the CAC with a copy of it.

        e.  If Israel considers such a plan to be inconsistent with the
            terms of this Agreement, including Annex I, it may, within
            thirty (30) days of the receipt by the CAC of such a plan,
            bring it for consideration by a special subcommittee of the
            CAC and/or request additional information regarding the
            plan.

            The Palestinian Authority shall respect the recommendations
            of the subcommittee. Pending the completion of such a
            consideration process, and due settlement of the matter in
            accordance with the provisions of this Agreement, the
            planning procedures shall not be finalized.

    33. Direct Taxation:

        This sphere includes, inter alia, income tax on individuals and
        corporations, property taxes, municipal taxes and fees, as
        formulated in Annex IV.

    34. Indirect Taxation:

        This sphere includes, inter alia, VAT, purchase taxes on local
        production and import taxes, as formulated in Annex IV.

    35. Environmental Protection:

        a.  Israel and the Palestinian Authority shall act for the
            protection of the environment and prevention of
            environmental risks, hazards and nuisances.

        b.  Israel and the Palestinian Authority shall respectively
            adopt, apply and ensure compliance with
            internationally-recognized standards concerning acceptable
            levels of land, air, water and sea pollution, and acceptable
            levels of treatment and disposal of solid and liquid wastes;
            for the use and handling of hazardous substances, including
            pesticides, insecticides and herbicides, and standards for
            the prevention and abatement of noise, odor, pests and other
            nuisances which may affect each side and the Settlements and
            the Military Installation Area.

        c.  The Palestinian Authority shall take the appropriate
            measures to prevent the uncontrolled discharge in the Gaza
            Strip and the Jericho Area of sewage and effluence to water
            sources including underground and surface water and rivers,
            and to promote the proper treatment of sanitary and
            industrial waste water.

        d.  In the event that Israel or the Palestinian Authority
            considers that there might be a threat to its environment,
            any relevant information concerning the development activity
            and its environmental impact shall be provided by the
            relevant side.

        e.  Israel and the Palestinian Authority shall respectively
            operate an emergency warning system in order to respond to
            events or accidents which may generate environmental
            pollution, damage or hazards. A mechanism for mutual
            notification and coordination in cases of such events or
            accidents shall be established.

        f.  Israel and the Palestinian Authority shall cooperate in
            implementing agreed principles and standards concerning the
            protection of the Mediterranean Sea, the protection of the
            ozone layer, the control of movement of hazardous wastes and
            their disposal, the restriction of trade in endangered
            species of wild fauna and flora, and the conservation of
            migratory species of wild animals.

        g.  Israel and the Palestinian Authority shall establish within
            the CAC an Environmental Experts Committee for the
            coordination of environmental issues, to be convened when
            the need arises.

    36. Gas and Petroleum:

        a.  This sphere includes, inter alia, distribution, supply,
            licensing, sales, exploration and production of gas and
            petroleum in the Gaza Strip and the Jericho Area.

        b.  In authorizing the construction or operation of gas and
            petroleum facilities (including gas and petrol stations), a
            safety distance from the Settlements and the Military
            Installation Area shall be observed by the Palestinian
            Authority.

        c.  The color of all gas cylinders in use in the Gaza Strip and
            the Jericho Area shall be different than that in use in
            Israel.

        d.  Israel and the Palestinian Authority agree to cooperate
            concerning the exploration and production of oil and gas in
            cases of joint geological structures lying partly in Israel
            or the West Bank and partly in the Gaza Strip or the Jericho
            Area.

        e.  Transfer of gas or fuel products through or to Israel and
            the West Bank shall be in accordance with Israeli standards
            concerning safety, security and environmental protection,
            and in accordance with the arrangements regarding entry into
            Israel.

        f.  Policies of pricing, taxation, import and marketing
            regarding gas and petroleum are dealt with in Annex IV.

    37. Insurance:

        a.  This sphere includes, inter alia, licensing of insurance
            companies, insurance agents and supervision of their
            activity.

        b.  Arrangements regarding the compulsory insurance of motor
            vehicles and the compensation of road accident casualties,
            in view of transportation between the Gaza and the Jericho
            area, are dealt with in Annex IV.

    38. Treasury:

        a.  In view of the need for a smooth transfer of powers and
            responsibilities, Israel shall provide the Palestinian
            Authority, through a team of Palestinian auditors, with all
            the details concerning the Civil Administration budget
            allocated for the Gaza Strip and the Jericho Area and the
            revenues, expenses and accounts. It shall also provide
            details regarding the Civil Administration's existing
            financial system in the Gaza Strip and the Jericho Area.

        b.  (1) Israel shall transfer to the Palestinian Authority all
                the Gaza Strip and the Jericho Area Civil Administration
                funds and bank accounts as well as movable property.

            (2) Israel shall provide the Palestinian Authority with a
                list of the Civil Administration departments and their
                immovable offices, storerooms, warehouses, etc.

            (3) Where such immovables are situated on private property,
                including property owned by absentees, Israel shall
                provide the Palestinian Authority with the contracts
                between the Civil Administration and the owners of such
                property.

        c.  (1) Israel shall bring to an end all the Gaza Strip and the
                Jericho Area Civil Administration service contracts
                detailed in Appendix E attached to this Annex.

                Upon the transfer of powers and responsibilities, Israel
                shall provide the Palestinian Authority with copies of
                confirmations from the contractors declaring that they
                have no claim or demand concerning these contracts.

            (2) Civil Administration development contracts, the duration
                of which extends beyond the transfer of powers and
                responsibilities, as detailed in Appendix E, shall be
                transferred to the Palestinian Authority and shall
                remain in force.

            (3) Civil Administration contracts concerning leasing or
                renting Waqf, absentee or private property shall be
                transferred to the Palestinian Authority and shall
                remain in force.

            (4) All contracts entered into by the Custodian of Absentee
                and Governmental Property for renting and leasing land
                shall be transferred to the Palestinian Authority, and
                Israel shall give notice of such to the tenants and
                lessees. It is understood that following the transfer of
                such contracts the Palestinian Authority shall have full
                discretion to take any decision regarding these
                contracts.

        d.  After the transfer of authorities, powers and
            responsibilities in this sphere, if Israel is sued with
            regard to the contracts and obligations referred to in
            subparagraph c. above, the Palestinian Authority shall
            reimburse Israel for the full amount awarded by any court or
            tribunal.

        e.  Where legal proceedings are brought in respect of such a
            claim, Israel will notify the Palestinian Authority and
            enable it to participate in defending the claim.

        f.  Upon the transfer of powers and responsibilities, the
            Palestinian Authority shall be solely responsible for any
            claim regarding its actions pursuant to the transfer.

        g.  Israel shall provide the Palestinian Authority with copies
            of the contracts listed in Appendix E in order to enable it
            to make a decision on new contracts which it may conclude.
            If such contracts are not written in Arabic, Israel shall
            provide the Palestinian Authority with a translation into
            Arabic.




                                Annex II

                               APPENDIX A


1.   The Naaran Synagogue (Ein Diuk).

2.   The Jewish Cemetery in Tel Sammarat.

3.   "Shalom Al Israel" Synagogue in Jericho.

4.   The Jewish Synagogue in Gaza city.




                                Annex II

                               APPENDIX B


To be added in the future.




                                Annex II

                               APPENDIX C

                Technical Schedule Regarding Population
                       Registry and Documentation


Note: The following is only part of this Appendix. Other sections of
this Appendix shall be added in the future.

1.  Passport/travel document format

    a.  General specifications

        (1) Languages: Arabic and English.

        (2) External color: green.

        (3) Front cover titles will be Palestinian Authority,
            Passport/Travel Document (shall be written in letters of
            equal size).

        (4) Each person, without reference to age, will hold his/her own
            document.

        (5) The validity of the document shall be up to 3 years.

        (6) The number of pages: not less than 32 pages (to be checked
            by international standards).

        (7) Perforation of the Passport/Travel Document number shall be
            in at least half of the pages.

    b.  Internal page of external cover

        (1) The same title as external.

        (2) Text: in Arabic and English as follows:

            "This Passport/Travel Document is issued pursuant to the
            Palestinian Self Government Agreement according to the Oslo
            Agreement signed in Washington on September 13, 1993."

        (3) The rest of the text: as usual.

        (4) Bottom of page: < signature + seal > of the Palestinian
            Authority.

    c.  Page number 1

        Number of the Passport/Travel Document.

    d.  Page number 2 - the sticker

        (1) Same information as today. Format: to be discussed.

        (2) Each name shall be titled for ease of reading (first name,
            family name, etc.).

    e.  Page number 3

        (1) Address of holder.

        (2) Text: "The bearer of this document ... "

    f.  Visa pages

        No comments.

    g.  Last page (32 or other)

        The text of paragraph 1 will be:

        "This passport/travel document, as long as it is valid, will
        enable its bearer on return from abroad, to enter the Gaza Strip
        and the Jericho Area."

        Note: The aforementioned is meant to enable passage through
        Israeli border control without the need of an entrance visa.




                                Annex II

                               APPENDIX D

                Technical Schedule:  Telecommunications


Pursuant to the telecommunications principles agreed upon on February
23rd, 1994, the following modalities and technical details have been
determined by the two sides:

1.  General

    The Palestinian Authority shall use or reassign within its
    jurisdiction sections of frequencies covering all its required
    services within the bands L.F., M.F., H.F., V.H.F. and U.H.F. up to
    960 MHz, to satisfy its present and future needs, as specified in
    the principles referred to above. The growing communication needs of
    the Palestinian Authority in the spheres of administration, police
    and civilian sectors in the Gaza Strip and the Jericho Area will be
    satisfied within a framework of coordination and cooperation.

    To that end, the Palestinian Authority shall present its
    requirements through the Joint Subcommittee of Technical Experts.
    Frequencies or sections of frequencies in the aforementioned bands
    will be assigned, or an alternative thereto providing the required
    service within the same band, or the best possible alternative
    thereto, acceptable by the Palestinian side and agreed upon by
    Israel in the Joint Subcommittee of Technical Experts.

2.  Technical Details of the Initial Requirements The following is the
    first batch of initial requirements of immediate concern coinciding
    with the entry of the Palestinian Police and establishment of the
    Palestinian Authority.

    Further details and additional requirements will be presented
    through the Joint Subcommittee of Technical Experts at a later
    stage.

    a.  Wireless:

        (1) DCO - will operate frequencies within a 410 to 430 MHz band.

        (2) PDPF

        (3) Cellular telephones

    b.  Radio and Television

    c.  Microwave:

        Palestinian requirements for microwave communications above the
        frequency 1 GHz will be satisfied using the same modality and
        will adhere to the technical parameters outlined in paragraph
        B.2 of the above principles of February 23rd, 1994.



                                Annex II

                               APPENDIX E


                           Service Contracts

                    (Costs in thousands of shekels)


+----------------------------------------------------------------+
| Name of Supplier             Type of Arrangement   Annual Cost |
+----------------------------------------------------------------+
+----------------------------------------------------------------+
| Gertner Gibor                Contract                  145     |
| Beersheva Technical College  Contract                   50     |
| Adnat Communications         Contract                  150     |
|                              (Rolling Stone)                   |
| Halwa                        Contract                   20     |
| Hiram Landau                 Contract                  870     |
| Telrad                       Contract                 5900     |
| Beersheva Flour Mill         Contract                  270     |
| Isralift                     Contract                   40     |
| Eurocom                      Per service call           70     |
| Yitzhak Shapira              Agreement                  20     |
| Hertz Fogel                  Contract                   34     |
| Mahud                        Contract                   10     |
| Margolin Ron                 Contract                  350     |
| Moshe Ravid                  Contract                   10     |
| Malal Software Industries    Contract                  250     |
| Malam Systems                Contract                 1700     |
| Magal Infrastructure         Contract                   50     |
| Ahskelon Mechanical Laundry  Contract                   65     |
| Nachman Nir - Engineer       Contract                   40     |
| Simona Bar Sagi              Contract                    4     |
| Pioneer Steel                Contract                  517     |
| Azata Flowers                Contract                   32     |
| Krawitz                      Contract                  180     |
| R.N. Construction            Contract                  250     |
| Engineering                                                    |
| Reshef Berder                Contract                    3     |
| Shorashim                    Contract                   33     |
| Shavit Meshulam              Contract                    2     |
| Sha'atit                     Contract                  132     |
| Tadiran                      Contract                 1200     |
| Tenuva                       Contract                   80     |
| Tim Computers                Contract                 3500     |
| Engineering Concrete Co.     Contract                 1100     |
+----------------------------------------------------------------+


+----------------------------------------------------------------+
| Name of Supplier             Type of Arrangement   Annual Cost |
+----------------------------------------------------------------+
+----------------------------------------------------------------+
| Osma Haggan Alhadiri         Tender                    750     |
| Osma Bakar Alhazander        Tender                    409     |
| Ismail Mussa Asbed           Tender                   1750     |
| Agudat Hatzdaka Printers     Tender                    260     |
| Keutzer Trading Store        Tender                    131     |
| Alzafadi Trading Co.         Tender                    480     |
| Hamadi El Salem              Tender                     15     |
| Roters Co.                   Tender                    210     |
| Akila Fuel Co.               Tender                      7     |
| Bus Co.                      Tender                    100     |
| Morad Trading Co.            Tender                     36     |
| Beno Razek                   Tender                   1100     |
| Mahmad Feisal Mahanna        Tender                    312     |
| El Sharek Library            Tender                     26     |
| Mahmad Rasmi Alkardi         Tender                     32     |
| Mahmad Hassin Ishmila        Contract                  150     |
| Nazer Ladbai Hamda           Contract                  106     |
| Sammi Saleiman Daoud         Contract                  206     |
| Salem Abu Dalal              Contract                 1700     |
| Aabed Abdalla Alpra          Contract                  100     |
| Mahana and Co.               Contract                 5600     |
| Jerusalem Medicine Co.       By order                  108     |
| Bir Zeir Co.                 By order                  580     |
| Asmi Ltd.                    By order                   13     |
| Plastin                      By order                   45     |
| Eastern Chemical Co.         By order                   19     |
| Nables Dinat Nazmi           By order                    3     |
+----------------------------------------------------------------+



+----------------------------------------------------------------+
| Name of Supplier             Type of Arrangement   Annual Cost |
+----------------------------------------------------------------+
+----------------------------------------------------------------+
| Ackerstein                   Reg. Commitments (orders)  42     |
| Agis                         "       "      "         1500     |
| I.T.S.                       "       "      "           40     |
| Abic                         "       "      "          130     |
| CRS Assoc.                   "       "      "          356     |
| Isotope                      "       "      "           17     |
| Ilex                         "       "      "          110     |
| Astro                        "       "      "          300     |
| Ofek Nitzpeh Ramon           "       "      "           13     |
| I.T.T. Macro                 "       "      "          100     |
| Ampa Ltd.                    "       "      "           88     |
| Ayalon Meromi                "       "      "          135     |
| Yakobovitch                  "       "      "          500     |
| Elyakim Ben Ari              "       "      "         1000     |
| Avraham Goldberg             "       "      "           35     |
| Orda Print                   "       "      "          203     |
| Izodan                       "       "      "           10     |
| I.I.S.                       "       "      "           81     |
| Arka                         "       "      "         1700     |
| Bioferma                     "       "      "           94     |
| Balgar                       "       "      "           11     |
| Baktab Dragnosti             "       "      "            8     |
| Burei Book Co.               "       "      "           13     |
| Beeper Communications        "       "      "          120     |
| Binat Communications         "       "      "          281     |
| Bell Art Marketing Co.       "       "      "           78     |
| Gamai Zur                    "       "      "            5     |
| Grafit                       "       "      "           29     |
+----------------------------------------------------------------+



+----------------------------------------------------------------+
| Name of Supplier             Type of Arrangement   Annual Cost |
+----------------------------------------------------------------+
+----------------------------------------------------------------+
| John Bryce                   Regular Tenders           332     |
| Guttman Architects           "       "                   6     |
| Zover Medical Equipment      "       "                  35     |
| De Greit Equipment           "       "                  79     |
| Denograf                     "       "                   8     |
| Difries                      "       "                   6     |
| Zerot Pictures               "       "                  13     |
| Dekel Printers               "       "                   4     |
| Digital                      "       "                 403     |
| Be'eri Printers              "       "                 203     |
| Hamashbir                    "       "                  73     |
| Hamadaf                      "       "                 206     |
| Hagal Hahadash               "       "                  10     |
| Lamesheh Co.                 "       "                  77     |
| Hyper Techni                 "       "                 138     |
| Balmut                       "       "                  20     |
| Electrical Engineering       "       "                  62     |
| Zameret Curtains             "       "                  10     |
| Zik Eish                     "       "                 106     |
+----------------------------------------------------------------+



+----------------------------------------------------------------+
| Name of Supplier             Type of Arrangement   Annual Cost |
+----------------------------------------------------------------+
+----------------------------------------------------------------+
| Herut Elevators              Regular Orders             35     |
| Hagim                        "       "                  10     |
| Chaimov                      "       "                  70     |
| Intermid                     "       "                 920     |
| Kartin                       "       "                 460     |
| Hagai                        "       "                 330     |
| Totenauer                    "       "                  25     |
| Teva                         "       "                  50     |
| Total Graphics               "       "                  10     |
| Techno Realco                "       "                 470     |
| Yaron Chemicals              "       "                  18     |
| Yegev Ltd.                   "       "                  33     |
| Isramedcom                   "       "                  45     |
| Yediot Aharonot              "       "                   5     |
| Yitzhak Benni                "       "                 504     |
| Ifat Information Center      "       "                  51     |
| Radet                        "       "                 500     |
| Livnat Ltd.                  "       "                  33     |
| Lahavot                      "       "                 ---     |
| Ligad                        "       "                   4     |
| Laragent                     "       "                 ---     |
| Logi                         "       "                  14     |
| Maksima                      "       "                 581     |
| Magen David                  "       "                 100     |
| Ma'atak                      "       "                  12     |
| Mad Technika                 "       "                1280     |
| Chai Laboratories            "       "                   8     |
| Maf'il                       "       "                   6     |
| Mizauk                       "       "                  13     |
| Pereg Works                  "       "                 670     |
| Mei Eden                     "       "                  56     |
| Suliman Levin                "       "                 136     |
| Sigma Israel                 "       "                  70     |
| Sadan Safes                  "       "                  16     |
| Seat Carmel                  "       "                  20     |
| Super Pile                   "       "                  13     |
| Einav                        "       "                   9     |
| Alkades Newspaper            "       "                  65     |
| Fudi Industries              "       "                   8     |
| Pharma Best                  "       "                  30     |
| Pharmatud                    "       "                  34     |
| Zemel                        "       "                   6     |
| Katzko                       "       "                 170     |
| Rezenfal                     "       "                  23     |
| Rekah                        "       "                   7     |
| Rav Bariah                   "       "                  58     |
| Shmerling                    "       "                  27     |
| Shamrad Electronics          "       "                  13     |
+----------------------------------------------------------------+



                           Development Contracts


The Beit Hanun Bridge - constructed by the Public Works Department. The
total cost is 1 million NIS.

The Sheikh Radwan School - The constructor is the Public Works
Department that has contracts with sub-contractors. The total cost is
3.750 million NIS.

The Jericho Retirement Retirement Home The constructor is the Housing
Department that has contracts with sub-contractors.
.
     =====================================================================
                       Israel Information Service Gopher
     Information Division              Israel Foreign Ministry - Jerusalem
                 Mail all Queries to   ask@israel-info.gov.il
     =====================================================================


                               Annex III

                   PROTOCOL CONCERNING LEGAL MATTERS



                               Article I

                         Criminal Jurisdiction


1.  The criminal jurisdiction of the Palestinian Authority covers all
    offenses committed in the areas under its territorial jurisdiction
    (hereinafter, for the purposes of this Annex, "the Territory")
    subject to the provisions of this Article.

2.  Israel has sole criminal jurisdiction over the following offenses:

    a.  offenses committed in the Settlements and the Military
        Installation Area subject to the provisions of this Annex; and

    b.  offenses committed in the Territory by Israelis.

3.  In exercising their criminal jurisdiction, each side shall have the
    power, inter alia, to investigate, arrest, bring to trial and punish
    offenders.

4.  In addition, and without derogating from the territorial
    jurisdiction of the Palestinian Authority, Israel has the power to
    arrest and to keep in custody individuals suspected of having
    committed offenses which fall within Israeli criminal jurisdiction
    as noted in paragraphs 2 and 7 of this Article, who are present in
    the Territory, in the following cases:

    a.  The individual is an Israeli, in accordance with Article II of
        this Annex; or

    b.  (1) The individual is a non-Israeli suspected of having just
            committed an offense in a place where Israeli authorities
            exercise their security functions in accordance with Annex
            I, and is arrested in the vicinity in which the offense was
            committed. The arrest shall be with a view to transferring
            the suspect, together with all evidence, to the Palestinian
            Police at the earliest opportunity.

        (2) In the event that such an individual is suspected of having
            committed an offense against Israel or Israelis, and there
            is a need for further legal proceedings with respect to that
            individual, Israel may retain him or her in custody and the
            question of the appropriate forum for prosecuting such a
            suspect shall be dealt with by the Legal Committee on a
            case-by-case basis.

5.  In the case of an offense committed in the Territory by a
    non-Israeli against Israel or an Israeli, the Palestinian Authority
    shall take measures to investigate and prosecute the case, and shall
    report to Israel on the result of the investigation and any legal
    proceedings.

6.  a.  Tourists in transit to or from Israel through the Gaza Strip or
        the Jericho Area, who are present on the Lateral Roads or on the
        main North-South road crossing the Jericho Area (Route No. 90),
        may be arrested and questioned only by the Israeli authorities
        which shall notify the Palestinian Authority. Where the Israeli
        authorities conclude that an offense under the prevailing law
        has been committed, and that further legal proceedings in
        respect of the tourist are required, such proceedings shall be
        taken by the Palestinian Authority.

    b.  Where such a tourist present outside these areas is detained or
        arrested by the Palestinian Authority, it shall notify the
        Israeli authorities immediately and shall enable them at the
        earliest opportunity to meet the detainee and to provide any
        necessary assistance, including consular notification, requested
        by the detainee.

7.  Nothing in this Article shall derogate from Israel's criminal
    jurisdiction in accordance with its domestic laws over offenses
    committed outside Israel (including in the Territory) against Israel
    or an Israeli with due regard to the principle that no person can be
    tried twice for the same offense. The exercise of such jurisdiction
    shall be subject to the provisions of this Annex and without
    prejudice to the criminal jurisdiction of the Palestinian Authority.



                               Article II

                  Legal Assistance in Criminal Matters


1.  General

    a.  Israel and the Palestinian Authority shall cooperate and provide
        each other with legal assistance in criminal matters. Such
        cooperation shall include the arrangements detailed in this
        Article.

    b.  For the purpose of this Article, "Israeli military forces" may
        include Israel Police and other Israeli security forces.

    c.  Documents served by one Party in the territory under the
        responsibility of the other, shall be accompanied by a certified
        translation into the official language of the other Party.

2.  Cooperation in Criminal Matters

    a.  The Israel Police and the Palestinian Police shall cooperate in
        the conduct of investigations. Subject to detailed arrangements
        to be agreed upon, such cooperation shall include the exchange
        of information, records and fingerprints of criminal suspects,
        vehicle ownership registration records, etc.

    b.  Where an offense is committed in the Territory by an Israeli
        acting jointly with an individual under Palestinian personal
        jurisdiction, the Israeli military forces and the Palestinian
        Police will cooperate in conducting an investigation.

    c.  The Palestinian authorities shall not arrest or detain Israelis
        or place them in custody. Israelis can identify themselves by
        presenting Israeli documentation.

        However, where an Israeli commits a crime against a person or
        property in the Territory the Palestinian Police upon arrival at
        the scene of the offense shall immediately notify the Israeli
        authorities through the relevant DCO. Until the arrival of the
        Israeli military forces the Palestinian Police may, if
        necessary, detain the suspect in place while ensuring his
        protection and the protection of all those involved and shall
        prevent interference with the scene of the offense, collect the
        necessary evidence and conduct preliminary questioning.

    d.  Without derogating from the jurisdiction of the Palestinian
        Authority over property located or transported within the
        Territory, where the property is being transported or carried by
        an Israeli, the following procedure shall apply: The Palestinian
        authorities have the power to take any measures necessary in
        relation to Israeli vehicles or personal belongings where such
        vehicle or belongings have been used in commission of a crime
        and present an immediate danger to public safety or health. When
        such measures are taken the Palestinian authorities shall
        immediately notify the Israeli authorities through the relevant
        DCO, and shall continue to take the necessary measures until
        their arrival.

3.  a.  When an Israeli is suspected of committing an offense and is
        present in the Territory, the Israeli military forces shall be
        able to arrest, search and detain the suspect as required, in
        the presence of and with the assistance of the Palestinian
        Police.

    b.  When an Israeli commits an offense and is present in the Yellow
        Areas or on the Lateral Roads and their adjacent sides as
        defined in Annex I, the Israeli military forces may, without
        derogating from the territorial jurisdiction of the Palestinian
        Authority, arrest, search and detain the offender and shall
        notify the Palestinian Police immediately, provide it with all
        necessary information, and coordinate wherever possible.

4.  When an offense is committed inside a Settlement, and all those
    involved are Palestinians of the Gaza Strip or the Jericho Area or
    their visitors, the Israeli military forces shall notify the
    Palestinian Police immediately and shall hand over the offender and
    the collected evidence to the Palestinian Police unless the offense
    is security- related.

5.  Restraining Orders

    Each side shall execute orders issued by the competent organ of the
    other side restraining a person under the jurisdiction of that side
    from travelling abroad.

6.  Summons and Questioning of Witnesses

    a.  Where the statement of a witness who is an Israeli or other
        person present in Israel is required for a Palestinian
        investigation, the statement shall be taken by the Israel Police
        in the presence of a Palestinian Police officer in an Israeli
        facility at an agreed location.

    b.  Where the statement of a non-Israeli witness present in the
        Territory is required for an Israeli investigation, the
        statement shall be taken by the Palestinian Police in the
        presence of an Israeli police officer in a Palestinian facility
        at an agreed location.

    c.  In exceptional cases, each side may take a statement requested
        by the other side itself, without the presence of the requesting
        side.

7.  Transfer of Suspects and Defendants

    a.  Where a non-Israeli suspected of, charged with or convicted of
        an offense that falls within Palestinian criminal jurisdiction
        is present in Israel, the Palestinian Authority may request
        Israel to arrest and transfer the individual to the Palestinian
        Authority.

    b.  Where an individual suspected of, charged with or convicted of
        an offense that falls within Israeli criminal jurisdiction is
        present in the Territory, Israel may request the Palestinian
        Authority to arrest and transfer the individual to Israel.

    c.  Requests under subparagraphs a. and b. above shall specify the
        grounds for the request and shall be supported by an arrest
        warrant issued by a competent court.

    d.  Where the request is for the transfer of a suspect who is not a
        Palestinian requested by the Palestinian Authority:

        (1) the arrest warrant shall only be issued pursuant to an
            application made by or on behalf of the Attorney-General,
            confirming that there is reasonable evidentiary basis that
            the offense was committed by the suspect;

        (2) the offense must be punishable by not less than 7 years'
            imprisonment under the law of the requesting side.

    e.  (1) Individuals suspected of offenses punishable by less than 7
            years' imprisonment shall be interrogated by the
            investigating side in a facility of the other side or at an
            agreed location.

        (2) Interrogation shall take place in the presence of a police
            officer of the other side.

        (3) Upon the request of the investigating side the other side
            may detain the suspect in custody pending and during the
            questioning.

        (4) Where the presence of the suspect is required for an
            objective reason such as confronting witnesses and
            identification of site, the suspect shall be transferred for
            that purpose only.

    f.  (1) Both sides, upon receipt of a request in accordance with
            this Article, shall effect the arrest and transfer
            requested.

        (2) If the individual requested is detained in custody or is
            serving a prison sentence, the side receiving the request
            may delay the transfer to the requesting side for the
            duration of the detention or imprisonment.

    g.  No person shall be transferred in respect of an offense
        punishable by capital punishment unless the requesting side
        undertakes that capital punishment shall not be imposed in the
        case.

    h.  (1) Both sides shall take all necessary measures to ensure that
            the treatment of individuals transferred under this Article
            complies with the applicable legal arrangements in Israel
            and in the Territory and with internationally- accepted
            norms of human rights regarding criminal investigations.

        (2) Suspects transferred under this paragraph shall have the
            right to be assisted during the investigation period by an
            advocate of their own choice.

    i.  Each side may, upon the request of the other side, detain, for
        no more than seven days, an individual in respect of whom a
        request for arrest and transfer is to be made, pending the
        submission of such a request.

    j.  The transfer of foreigners by Israel to the Palestinian
        Authority under this Article shall be subject to the applicable
        conventions to which Israel is a party and in coordination with
        the foreigner's state of origin.

    k.  Both sides may agree that an individual convicted in the courts
        of one side shall serve his sentence in a prison of the other
        side, subject to arrangements and conditions to be agreed
        between the sides.

8.  Assistance in the Execution of Court Orders for the Purposes of
    Investigation

    a.  Israel and the Palestinian Authority shall execute orders issued
        by each others' courts for the purposes of investigations (e.g.,
        search warrants, orders for the production of documents and
        seizure orders), subject to the provisions of local law.

    b.  Where, for the purposes of an investigation, Israel or the
        Palestinian Authority requires that tests or examinations (such
        as fingerprinting or blood analysis) be effected in relation to
        an item situated in territory under the responsibility of the
        other side, that side shall effect the tests or examinations
        required and transfer the results to the side conducting the
        investigation. Where these results are not sufficient for the
        purposes of the investigation, arrangements shall be made for
        the transfer of the item to the side conducting the
        investigation.

9.  Legal Assistance in the Conduct of Judicial Proceedings

    a.  Summons and subpoenas issued by an Israeli court in respect of
        defendants and witnesses present in the Territory, shall be
        effected through the Palestinian Authority which shall be
        responsible for the service of summons, and the execution of
        subpoenas by the Palestinian Police. Subpoenas issued in respect
        of an Israeli defendant or witness shall be executed by the
        Israeli military forces in the presence of and with the
        assistance of the Palestinian Police.

    b.  Summons or subpoenas issued by a Palestinian court in respect of
        defendants and witnesses present in Israel shall be effected
        through the Israel Police who shall be responsible for the
        service of summons and the execution of subpoenas.

    c.  Where the evidence of an Israeli witness is required in
        connection with proceedings conducted by a Palestinian court,
        the evidence of the witness shall be taken at a Palestinian
        court situated at an agreed location close to one of the
        crossing points, and the witness shall be accompanied by
        representatives of the Israeli military forces together with the
        Palestinian Police.

    d.  Where the evidence of a witness is required in connection with
        proceedings conducted by a court of one side, such a request
        will be notified to the authorities of the other side to summon
        the witness.



                              Article III

                           Civil Jurisdiction


1.  The Palestinian courts and judicial authorities have jurisdiction in
    all civil matters, subject to this Agreement.

2.  Israelis conducting commercial activity in the Territory are subject
    to the prevailing civil law in the Territory relating to that
    activity.

    Nevertheless, any enforcement of judicial and administrative
    judgments and orders issued against Israelis and their property
    shall be effected by Israel. Israel undertakes to execute such
    judgments and orders within a reasonable time.

3.  The Palestinian courts and judicial authorities have no jurisdiction
    over civil actions in which an Israeli is a party, except for the
    following cases:

    a.  the subject matter of the action is an ongoing Israeli business
        situated in the Territory (the registration of an Israeli
        company as a foreign company in the Territory being evidence of
        the fact that it has an ongoing business situated in the
        Territory);

    b.  the subject matter of the action is real property located in the
        Territory;

    c.  the Israeli party is a defendant in the action and has consented
        to such jurisdiction by notice in writing to the Palestinian
        court or judicial authority;

    d.  the Israeli party is a defendant in an action the subject matter
        of which is a written agreement, and the Israeli party has
        consented to such jurisdiction by a specific provision in this
        agreement;

    e.  the Israeli party is a plaintiff who has filed an action in the
        Territory. If the defendant in the action is an Israeli, his
        consent to such jurisdiction in accordance with subparagraphs c.
        or d. above shall be required; or

    f.  actions concerning other matters as agreed between the Parties.

4.  The jurisdiction of the Palestinian courts and judicial authorities
    does not cover actions against the State of Israel including its
    statutory entities, organs and agents.



                               Article IV

                   Legal Assistance in Civil Matters


1.  Service of Legal Documents Israel and the Palestinian Authority will
    be responsible, in the areas under their respective territorial
    responsibility, for the service of legal documents, including
    subpoenas, issued by the judicial organs under the responsibility of
    the other Party.

2.  Interim Orders

    a.  Interim orders (e.g., temporary orders of attachment, the
        appointment of a receiver, restraining orders) issued by
        judicial organs under the responsibility of either Party will
        not have effect in the areas under the territorial
        responsibility of the other Party.

    b.  Judicial organs under the responsibility of both Parties will be
        authorized to issue interim orders which shall apply in the
        areas under their territorial responsibility, even in cases in
        which the primary action was filed with the judicial organs
        under the responsibility of the other Party.

    c.  The judicial organs of each side may issue orders restraining an
        individual from travelling abroad when the order relates to a
        matter being tried by that organ, subject to the relevant
        provisions of the domestic laws.

3.  Taking of evidence

    Israel and the Palestinian Authority will make arrangements for
    taking evidence from witnesses, when necessary, within the areas
    under their territorial responsibility, when such evidence is sought
    in connection with proceedings conducted by the judicial organs
    under the responsibility of the other side.

4.  Enforcement of judgements

    a.  Israel and the Palestinian Authority will enforce judgements
        rendered by the judicial organs under the responsibility of the
        other Party, provided that the judicial organ concerned had the
        jurisdiction to render the judgement and further provided that
        the enforcement is not contrary to public policy. The execution
        office under the responsibility of Israel and the Palestinian
        Authority shall execute such judgements as if rendered by their
        own judicial organs.

    b.  In executing any judgement against Israelis the Palestinian
        execution offices will be authorized to issue orders (e.g.,
        attachments, receivership, eviction) against Israeli property
        within the Territory.

    c.  Orders against the freedom of Israelis (e.g., imprisonment
        orders, restraining orders) shall only be issued by Israeli
        execution offices.

    d.  All orders issued by execution offices against Israelis or
        Israeli property within the Territory will be executed by the
        Israel Police with the assistance of the Palestinian Authority,
        or where the Israel Police notifies the Palestinian Authority
        that it has no objection, by the Palestinian Police.
.
     =====================================================================
                       Israel Information Service Gopher
     Information Division              Israel Foreign Ministry - Jerusalem
                 Mail all Queries to   ask@israel-info.gov.il
     =====================================================================

                                ANNEX II

                   PROTOCOL CONCERNING CIVIL AFFAIRS



                               Article I

               Liaison and Coordination in Civil Matters


A.  Joint Civil Affairs Coordination and Cooperation Committee

    1.  A Joint Civil Affairs Coordination and Cooperation Committee
        (hereinafter "the CAC") is hereby established.

    2.  The functions of the CAC are to coordinate between the
        Palestinian Authority on one hand, and Israel and the Civil
        Administration that shall continue to function in the rest of
        the West Bank on the other hand, concerning the following
        day-to-day matters:

        a.  Civil matters, including issues concerning the transfer of
            powers and responsibilities from the Israeli military
            government and its Civil Administration to the Palestinian
            Authority.

        b.  Matters arising with regard to roads, power lines and other
            infrastructure which require coordination according to this
            Agreement.

        c.  Questions regarding passage to and from the Gaza Strip and
            the Jericho Area and safe passage between the Gaza Strip and
            the Jericho Area, including crossing points and
            international crossings.

        d.  Day-to-day contacts between the two sides as regards matters
            such as employment permits, hospitalization, transportation
            licensing, transfer of information, etc.

        e.  Joint projects, matters of mutual interest and other matters
            requiring coordination and cooperation.

    3.  The CAC shall be comprised of an equal number of representatives
        from Israel and from the Palestinian Authority, and shall
        convene at least once a month unless otherwise agreed.

        Each side may initiate the convening of a special meeting on
        short notice.

    4.  The CAC shall determine by agreement its mode of procedure.

    5.  Matters of principle and policy not settled within the CAC shall
        be passed on to the Joint Israeli-Palestinian Liaison Committee.

B.  Joint Regional Civil Affairs Subcommittees

    1.  The CAC shall establish two Joint Regional Civil Affairs
        Subcommittees (hereinafter "the Subcommittees") for the Gaza
        Strip and the Jericho Area respectively.

    2.  Each Subcommittee shall deal with the day-to-day civil affairs
        matters as detailed in paragraph A.2 above.

        The Jericho Area Subcommittee shall also coordinate the
        relations between the Palestinian Authority and the military
        government and Civil Administration in the rest of the West
        Bank.

    3.  Each Subcommittee may establish ad hoc working groups if and
        when the need arises.

    4.  Each Subcommittee shall be comprised of an equal number of
        representatives from Israel and from the Palestinian Authority
        and shall convene no less than once every two weeks.

C.  General

    1.  Means of communication shall be set up with a view to ensuring
        efficient and direct contact 24 hours a day, in order to deal
        with any urgent matter arising in the civil affairs field.

    2.  Each side shall inform the other of its representatives to each
        committee prior to a meeting. Meetings of the CAC and its
        subcommittees shall be organized and hosted by the two sides
        alternately unless otherwise agreed.

    3.  The provisions detailed above shall not impede daily contacts
        between representatives of Israel and of the Palestinian
        Authority in all matters of mutual concern.




                               Article II

             Transfer of Powers and Responsibilities of the
                          Civil Administration


A.  1.  The transfer of powers and responsibilities from the Israeli
        military government and its Civil Administration to the
        Palestinian Authority shall be coordinated through the CAC and
        implemented in accordance with the following arrangements in a
        smooth, peaceful and orderly manner.

    2.  Preparations for the transfer of such powers and
        responsibilities shall commence immediately upon the signing of
        this Agreement, and shall be completed within 21 days.

        a.  The Israeli authorities shall provide all necessary
            assistance to the Palestinian Authority, including access to
            offices, registers, records, systems and equipment and all
            necessary information, data and statistics required for the
            transfer of powers and responsibilities.

        b.  Israel shall provide the Palestinian Authority with all the
            details as described in subparagraph 38 below.

    3.  On the date fixed for the transfer of powers and
        responsibilities, Israel shall transfer from the possession of
        the Israeli military government and its Civil Administration to
        the Palestinian Authority offices, budgetary allocations,
        financial funds and accounts, equipment, registers, files,
        computer programs and other movable property necessary for its
        functioning.

B.  All powers and responsibilities of the Civil Administration shall be
    transferred to the Palestinian Authority in the Gaza Strip and the
    Jericho Area, in accordance with the following provisions:

    1.  Interior Affairs:

        This sphere includes, inter alia, municipal affairs, licensing
        of newspapers and publications, censorship of films and plays
        and appointment of Mukhtars. In the Gaza Strip, this sphere
        shall also include fire fighting and Ottoman Societies.

    2.  Fisheries:

        a.  This sphere includes, inter alia, licensing of fishermen,
            marine agriculture and vessels' permits.

        b.  Security restrictions are dealt with in Annex I, Article XI.


    3.  Surveying:

        This sphere includes, inter alia, licensing of surveyors and
        performing surveys in areas falling within the Palestinian
        Authority's jurisdiction.

    4.  Statistics:

        a. The transfer of powers and responsibilities in this sphere
        includes inter alia transfer of research reports and
        publications prepared by the Department of Statistics.

        b. The application and validity of censuses which may be
        conducted by the Palestinian Authority shall be subject to the
        provisions of subparagraph 27.l below.

        c. Methods of cooperation regarding the collection of data on
        the movement of goods, services and labor between Israel and the
        Gaza Strip and the Jericho Area is dealt with in Annex IV.

    5.  Comptrol

    6.  Civil Administration Employees:

        The Palestinian Authority assures that it shall keep employing
        the present Palestinian Civil Administration employees in the
        Gaza Strip and the Jericho Area and shall maintain their rights.

    7.  Legal Administration:

        a.  This sphere includes, inter alia, administration of the
            Palestinian judiciary system in the Gaza Strip and the
            Jericho Area, licensing of lawyers, registration of
            companies and registration of patents and trademarks in
            these areas.

        b.  Legal issues regarding commercial and civil jurisdiction, as
            well as legal assistance, are dealt with in Annex III.

    8.  Labor:

        a.  Israel and the Palestinian Authority shall establish agreed
            procedures for mutual recognition of professional
            certificates and diplomas.

        b.  Restrictions regarding supervision and licensing of the
            production and use of explosives and gunpowder shall be in
            accordance with Annex I, Article VIII, paragraph 8.

    9.  Education:

        Israel and the Palestinian Authority shall ensure that their
        respective education systems contribute to the peace between
        Israel and the Palestinian people and peace in the entire
        region.

    10. Social Welfare:

        This sphere includes, inter alia, registration and supervision
        of charitable societies.

    11. Assessments

    12. Housing

    13. Tourism:

    a.  This sphere includes, inter alia, the licensing of hotels,
        souvenir shops and travel agents.

    b.  Tourism policy in general, and coordination between Israel and
        the Palestinian Authority, are dealt with in Annex IV.

    14. Parks:

        Transfer of powers and responsibilities in this sphere is
        without prejudice to the provisions applying to religious and
        archaeological sites.

    15. Religious Affairs:

        a.  The Palestinian Authority shall ensure free access to all
            holy sites in the Gaza Strip and the Jericho Area determined
            by the respective religious sects and shall protect these
            sites.

        b.  The above is without prejudice to the arrangements with
            regard to archaeological sites as set out in subparagraph 30
            below.

        c.  Visitors to holy sites shall behave according to accepted
            rules of behavior in holy sites.

        d.  Religious sects shall inform the Palestinian Authority of
            their respective holy sites in the Gaza Strip and the
            Jericho Area. For the purposes of this paragraph, the
            relevant authority regarding Jewish holy sites shall be the
            Israeli Government.

        e.  A list of the existing Jewish holy sites is attached as
            Appendix A attached to this Annex.

        f.  Israel declares that no property (including lands, buildings
            and institutions) belonging to the Islamic Waqf in the Gaza
            Strip and the Jericho Area was taken by the military
            government or its Civil Administration, except such property
            that might have been put to use for public purposes such as
            schools and public roads.

        g.  Pending the entry into force of the Interim Agreement the
            holy site of Nebi Mousa shall be under the auspices of the
            Palestinian Authority for religious purposes.

        h.  During religious events that take place three times a year
            and other special occasions that shall be coordinated with
            the Israeli authorities, Palestinians shall have the right
            to religious pilgrimage to the al-Maghtas under the
            Palestinian flag.

        i.  Religious affairs in the "Shalom Al Israel" synagogue in
            Jericho shall be under the auspices of the Israeli
            authorities.

    16. Employee Pensions:

        a.  This sphere includes, inter alia, the pension rights of
            employees of the Civil Administration as well as employees
            of other bodies who are entitled to pensions from the Civil
            Administration in the Gaza Strip and the Jericho Area.

        b.  As part of its powers and responsibilities, the Palestinian
            Authority shall assume the Civil Administration's statutory
            and contractual obligations to Palestinian employees,
            regarding pensions and their payment.

        c.  In the Gaza Strip, upon the transfer of powers and
            responsibilities, the Palestinian Authority shall assume
            prevailing powers and obligations, according to the existing
            pension system.

            Israel shall transfer to the Palestinian Authority, or to a
            Pension and Insurance Fund if established, the net income of
            the Fund (all payments plus interest after deduction of
            pension payments and running expenses) as accumulated at the
            Israel Ministry of Finance.

        d.  In the Jericho Area, the Palestinian Authority shall assume
            responsibility for payment of a budgetary pension.

        e.  After the transfer of authorities in this sphere, if Israel
            is sued by any employee or his/her heirs for any sums due to
            him/her as a pension, the Palestinian Authority shall
            reimburse Israel the full amount awarded the employee or
            his/her heirs by any court or tribunal.

        f.  Where legal proceedings are brought in respect of such a
            claim, Israel will notify the Palestinian Authority and
            enable it to participate in defending the claim.

    17. Commerce and Industry:

        a.  This sphere includes, inter alia, licensing of crafts and
            industries, supervision of commodities and services and of
            weights and measures, and the regulation of commerce.

        b.  The Palestinian Authority shall make arrangements to ensure
            safety conditions for the production, use and transportation
            of fuel and gas.

        c.  The production and use of weapons, ammunition or explosives
            are dealt with in Annex I, Article VIII, paragraph 8.

        d.  The economic relations between Israel and the Gaza Strip and
            the Jericho Area, and questions relating to imports to and
            exports from the Gaza Strip and the Jericho Area, are dealt
            with in Annex IV.

        e.  Matters regarding the environment are dealt with in
            subparagraph 35. below.

    18. Health:

        a.  This sphere includes, inter alia, the health insurance
            system.

        b.  The Palestinian Authority shall apply the present standards
            of vaccination of Palestinians and shall improve them
            according to internationally-accepted standards in the
            field.

        c.  The Palestinian Authority shall inform Israel of any Israeli
            hospitalized in a Palestinian hospital as outlined in Annex
            I, Article II. Arrangements for moving such hospitalized
            Israelis shall be agreed upon in the CAC.

        d.  Israel and the Palestinian Authority shall agree on
            arrangements regarding treatment and hospitalization of
            Palestinians in Israeli hospitals.

        e.  Israel and the Palestinian Authority shall exchange
            information regarding epidemics and contagious diseases and
            shall develop methods for exchange of medical files and
            documents.

        f.  Import of pharmaceuticals to the Gaza Strip and the Jericho
            Area through Israeli sea ports and airports shall be in
            accordance with general arrangements concerning imports, as
            dealt with in Annex IV.

    19. Transportation:

        a.  This sphere includes, inter alia, licensing of public
            transportation.

        b.  In exercising its powers and responsibilities, the
            Palestinian Authority shall make appropriate arrangements
            for the continued operation of existing Israeli public
            transportation lines to the Settlements.

        c.  High and appropriate international transportation standards
            shall be applied in the Gaza Strip and the Jericho Area.

        d.  Regulations in the transportation sphere shall continuously
            adapt to improvements in international standards due to the
            dynamics of technology and environmental considerations. Due
            consideration shall be given to compatibility between the
            standards of the Palestinian Authority and of Israel.

        e.  Regulations in the transportation field, including traffic
            signalization, shall be applied with a view to assuring the
            safety of all persons, to contributing to economic growth
            and to protecting the common environment.

        f.  Regarding meteorology, there shall be mutual assistance and
            cooperation between the Israeli and the Palestinian weather
            forecasting offices.

        g.  The issue of establishing transport and communication lines
            to and from the Jericho Area and the Gaza Strip to Israel
            and the West Bank is dealt with in Appendix B attached to
            this Annex.

        h.  The arrangements regarding the transfer of authorities
            concerning maritime activity and aviation are dealt with in
            Annex I.

    20. Agriculture:

        a.  Israel and the Palestinian Authority shall do their utmost
            to preserve and improve the veterinary standards.

        b.  Israel and the Palestinian Authority shall take all measures
            to reach equivalent and compatible standards regarding
            animal disease control, including mass vaccination of
            animals and avians, quarantines, "stamping out" measures and
            residue control standards.

        c.  Mutual arrangements shall be made to prevent the
            introduction and spread of plant pests and diseases, for
            their eradication, as well as arrangements concerning
            residue control standards in plant products.

        d.  The veterinary and the plant protection authorities of
            Israel and the Palestinian Authority shall coordinate and
            regularly exchange information regarding animal diseases, as
            well as plant pests and diseases, and shall establish a
            mechanism for immediate notification of the outbreak of such
            diseases.

        e.  Economic relations in the agricultural sphere between Israel
            and the Palestinian Authority, including transfer of
            agricultural goods, are dealt with in Annex IV.

        f.  Experts from both sides shall discuss the details of the
            arrangements regarding veterinary and plant protection
            within the CAC.

    21. Employment:

        a.  Procedures for distributing employment permits to work in
            Israel and in the Settlements shall be agreed upon between
            Israel and the Palestinian Authority.

        b.  Arrangements concerning the rights of employees and workers
            from the Gaza Strip and the Jericho Area working in Israel
            are dealt with in Annex IV.

    22. Land Registration:

        All powers and responsibilities regarding land registration will
        be transferred to the Palestinian Authority, except the
        Settlements and the Military Installation Area.

    23. Nature Reserves:

        a.  Israel and the Palestinian Authority shall safeguard and
            preserve nature in general and shall protect species of
            animals, plants and flowers of special breeds.

        b.  The Palestinian Authority shall respect the existing status
            of declared nature reserves and shall safeguard them.

    24. Electricity:

        a.  The Palestinian Authority shall continue, as appropriate, to
            buy electric power from the Jerusalem Electricity Company
            for the Jericho area.

        b.  Pending the establishment by the Palestinian Authority of an
            alternative system for the Gaza Strip, it shall temporarily
            buy electric power from the Israel Electric Company (IEC),
            and to that end shall enter into a commercial agreement with
            the IEC. This Agreement shall relate to the settling of
            debts; to IEC property; and to the maintenance of lines to
            Palestinian customers.

        c.  Without derogating from the powers and responsibilities
            transferred to the Palestinian Authority above, the
            Palestinian Authority shall enable the supply of electricity
            to the Gush Katif settlement area and the Kfar Darom
            settlement by the IEC, as well as the maintenance by the IEC
            of the electricity lines to these locations and of the
            electricity lines crossing the Jericho Area.

            The means of supplying electricity and the modalities of
            maintenance of lines to the Gush Katif settlement area and
            the Kfar Darom settlement shall be arranged by means of a
            commercial agreement between the Palestinian Authority and
            the IEC.

        d.  Environmental matters relating to electricity shall be
            governed by the provisions regarding environmental
            protection as set forth in subparagraph 35. below.

    25. Public Works:

        a.  This sphere includes, inter alia, the Housing Department in
            the Gaza Strip.

        b.  In principle, maintenance and repairs of the Lateral Roads
            leading to the Settlements and the Military Installation
            Area shall be carried out by the Palestinian Authority.

        c.  Where such maintenance and repairs have not been effected by
            the Palestinian Authority within a reasonable time, the
            Palestinian Authority shall request, through the CAC, that
            Israel effect such maintenance and repairs.

        d.  The Palestinian Authority shall notify and update Israel
            through the CAC of any activity which may disturb the
            regular flow of traffic on roads, including road works,
            repairs and large-scale construction in close proximity to
            roads.

    26. Postal Services:

        a.  This sphere includes, inter alia, the management of post
            offices and postal delivery in the Gaza Strip and the
            Jericho Area.

        b.  The Palestinian Authority may issue postage stamps, postal
            stationery (hereinafter "stamps") and date stamps, subject
            to the following provisions:

            (1) Stamps shall include only the term "the Palestinian
                Authority", the face value and the subject.

            (2) The face value shall be stated only in the agreed legal
                currency circulating in the Gaza Strip and the Jericho
                Area as detailed in Annex IV.

            (3) The design, symbols and subjects of stamps, postal
                stationery and date stamps issued by the Palestinian
                Authority will be in accordance with the principles
                outlined in Article XII of the Agreement.

            (4) The date stamp shall include only the name of the office
                responsible for the cancelling of the stamp and the date
                of that operation.

        c.  Both sides will coordinate and cooperate in establishing
            postal rates for international postal services in such a way
            as to prevent mutual economic harm to each other.

        d.  The modalities and arrangements for sending and receiving
            all postal items, including parcels, between the Gaza Strip
            and the Jericho Area and Israel and the West Bank will be
            arranged by means of a commercial agreement between the
            Israel Postal Authority and the Civil Administration
            respectively on one side, and the Palestinian Authority on
            the other.

        e.  The modalities and arrangements for sending and receiving
            all postal items, including parcels, between the Gaza Strip
            and the Jericho Area and other countries will be arranged by
            means of a commercial agreement between the Israel Postal
            Authority and the Palestinian Authority, further modalities
            will be discussed in the CAC.

        f.  The customs principles detailed in Annex IV shall also apply
            to postal items, including parcels, transmitted to the Gaza
            Strip and the Jericho Area.

    27. Population Registry and Documentation:

        a.  The Palestinian Authority shall receive the existing
            population registry in the Gaza Strip and the Jericho Area,
            as well as files pertaining to the residents of these areas.

        b.  The existing identity card of the present residents of the
            Gaza Strip and the Jericho Area, as well as of new residents
            therein, shall be substituted by a new identity card.

        c.  Possession of the aforementioned identity card and, whenever
            necessary, of an Israeli entrance permit, shall be required
            for entry into Israel by residents of the Gaza Strip and the
            Jericho Area.

        d.  Safe passage between the Gaza Strip and the Jericho Area of
            residents of these areas shall require the possession of the
            aforementioned identity card and any other necessary
            documents.

        e.  In order to ensure efficient passage procedures and to avoid
            discrepancies, the Palestinian Authority shall update Israel
            on a regular basis, through the CAC, of every change in its
            registry, with a view to enabling Israel to maintain an
            updated and current registry.

        f.  Exit abroad through the passages or through Israeli points
            of exit by residents of the Gaza Strip and the Jericho Area
            shall only be possible by means of an agreed passport/travel
            document.

            This title shall be written on the cover in letters of equal
            size.

        g.  (1) Persons from countries not having diplomatic relations
                with Israel who visit the Gaza Strip and Jericho Area
                shall be required to obtain a special visitor's permit
                to be issued by the Palestinian Authority and cleared by
                Israel. Requests for such permits shall be filed by a
                relative of the visitor residing in the areas, through
                the Palestinian Authority, or by the Palestinian
                Authority itself.

            (2) Visitors to the Gaza Strip and the Jericho Area shall be
                permitted to remain in these areas for a period of up to
                three months granted by the Palestinian Authority and
                cleared by Israel.

                The Palestinian Authority may extend this three month
                period for an additional period of up to four months and
                shall inform Israel about the extension. Any further
                extensions require the approval of Israel.

        h.  Persons from countries having diplomatic relations with
            Israel who visit the Gaza Strip and the Jericho Area shall
            either be required to obtain the aforementioned visitor's
            permit or to hold a valid passport and an Israeli visa, when
            required.

        i.  Entry into the Gaza Strip or the Jericho Area of
            non-resident Palestinians who are visitors to these areas
            shall be handled by the Palestinian Authority in accordance
            with subparagraphs g. and h. above.

        j.  The Palestinian Authority shall ensure that visitors
            referred to above shall not overstay the duration of their
            entry permit and authorized extensions.

        k.  Special VIP certificates may be issued as detailed in Annex
            I.

        l.  The Palestinian Authority may grant permanent residency in
            the Gaza Strip and the Jericho Area with the prior approval
            of Israel.

        m.  The format of the aforementioned identity card and
            passport/travel document as well as arrangements of the
            implementation of the provisions set forth in this Article
            are detailed in Appendix C attached to this Annex.

    28. Government and Absentee Land and other Immovables:

        a.  All powers and responsibilities of the Custodian of Absentee
            Land and Immovables and powers and responsibilities for
            governmental land and other immovables in the Gaza Strip and
            the Jericho Area shall be transferred to the Palestinian
            Authority in accordance with the following.

        b.  During the interim period, the transfer of powers and
            responsibilities of the Custodians of Absentee and
            Government Property in the Gaza Strip and the Jericho Area,
            other than those relating to movable property, shall not
            apply to land and other immovables within the Settlements
            and the Military Installation Area. The issue shall be dealt
            with within the permanent status negotiations.

        c.  The status of land and other immovables which, prior to June
            1967, were in the custody of the Jordanian Custodian of
            Enemy Property in the West Bank or under the management of
            the Director General appointed in accordance with Order no.
            25 of 31.3.50 in the Gaza Strip, shall be dealt with in the
            permanent status negotiations. Pending those negotiations,
            the status quo of such land and other immovables shall be
            maintained.

    29. Telecommunications:

        a.  The Electromagnetic Sphere

            (1) The frequencies detailed in the telecommunications
                technical schedule attached to this Annex as Appendix D
                are assigned for the use of the Palestinian Authority in
                the Gaza Strip and the Jericho Area, to satisfy its
                present needs.

            (2) Conditions for the use of these frequencies as well as
                details concerning power, timing, direction, antenna
                radiation pattern and transmission methods, are also
                formulated in the aforementioned Appendix.

            (3) The frequencies shall serve, inter alia, a television
                network and a radio network.

            (4) The Palestinian Authority shall ensure that only the
                above frequencies shall be used and that it shall not
                disturb or interfere with Israel radio communications
                activity, and Israel shall ensure that there shall be no
                disturbance or interference with those frequencies.

            (5) The compatibility of the standards of electromagnetic
                and telecommunications systems and equipment imported or
                installed for use in the Gaza Strip and the Jericho
                Area, as well as the standards of operation of such
                equipment, are as agreed upon and formulated in the
                attached Appendix D.

            (6) The CAC shall establish, as the need arises, a joint
                committee of technical experts from both sides to
                discuss and deal with any issue arising out of this
                Agreement including the fulfillment of future needs of
                the Palestinian Authority.

        b.  Telecommunications

            (1) Pending the establishment by the Palestinian Authority
                of an alternative telecommunications system in the Gaza
                Strip and the Jericho Area, the existing system of
                telephone and other related communication services
                including international telecommunications in the Gaza
                Strip and the Jericho Area shall continue through "Bezeq
                - the Israel Telecommunications Corp. Ltd." (hereinafter
                "Bezeq") and to that end, the Palestinian Authority
                shall enter into a commercial agreement with Bezeq.

            (2) Without derogating from the powers and responsibilities
                of the Palestinian Authority, the Palestinian Authority
                shall enable the supply of telecommunications services
                to the Settlements and the Military Installation area by
                Bezeq, as well as the maintenance by Bezeq of the
                telecommunications infrastructure serving them or
                infrastructure crossing the Gaza Strip and the Jericho
                Area.

    30. Archaeology:

        a.  The Palestinian Authority shall protect and guard all
            archaeological sites in the Gaza Strip and the Jericho Area,
            respect academic freedom in particular the freedom
            publishing research work based on excavations and shall take
            all necessary steps against theft of archaeological
            artifacts and illegal trade in them.

        b.  The CAC shall establish a joint committee of experts from
            both sides to deal with all archaeological issues of common
            interest. Actions which may affect the sites detailed in
            Appendix A shall also be referred to this committee for
            discussion and recommendation.

            The Palestinian Authority shall respect such
            recommendations.

            Disagreements on this matter within the joint committee of
            experts shall be referred to the CAC to be dealt with in
            accordance with the provisions of this Agreement.

        c.  Subject to academic considerations, and in accordance with
            the law, when the Palestinian Authority grants excavation
            licenses to archaeologists, researchers and academics
            interested in excavating in the Gaza Strip and Jericho Area,
            it shall do so without discrimination.

        d.  The Palestinian Authority shall ensure free access to
            archaeological sites.

        e.  With due consideration to the Palestinian demand that Israel
            shall return all archaeological artifacts found in the Gaza
            Strip and Jericho area since 1967, this issue shall be dealt
            with in the negotiations on the final status.

            For this purpose, Israel shall provide a list of
            archaeological sites for which excavation licenses were
            granted since 1967, including, where available, a general
            description of the artifacts found therein, and their
            location.

    31. Water and Sewage

        a.  All water and sewage (hereinafter referred to as "water")
            systems and resources in the Gaza Strip and the Jericho Area
            shall be operated, managed and developed (including
            drilling) by the Palestinian Authority, in a manner that
            shall prevent any harm to the water resources.

            b. As an exception to subparagraph a., the existing water
            systems supplying water to the Settlements and the Military
            Installation Area, and the water systems and resources
            inside them continue to be operated and managed by Mekoroth
            Water Co.

        c.  All pumping from water resources in the Settlements and the
            Military Installation Area, shall be in accordance with
            existing quantities of drinking water and agricultural
            water.

            Without derogating from the powers and responsibilities of
            the Palestinian Authority, the Palestinian Authority shall
            not adversely affect these quantities.

            Israel shall provide the Palestinian Authority with all data
            concerning the number of wells in the Settlements and the
            quantities and quality of the water pumped from each well,
            on a monthly basis.

        d.  Without derogating from the powers and responsibilities of
            the Palestinian Authority, the Palestinian Authority shall
            enable the supply of water to the Gush Katif settlement area
            and the Kfar Darom settlement by Mekoroth, as well as the
            maintenance by Mekoroth of the water systems supplying these
            locations and of water lines crossing the Jericho Area.

        e.  The Palestinian Authority shall pay Mekoroth for the cost of
            water supplied from Israel and for the real expenses
            incurred in supplying water to the Palestinian Authority.

        f.  All relations between the Palestinian Authority and Mekoroth
            shall be dealt with in a commercial agreement.

        g.  The Palestinian Authority shall take the necessary measures
            to ensure the protection of all water systems in the Gaza
            Strip and the Jericho Area.

        h.  Upon the signing of this Agreement, the two Parties shall
            establish a subcommittee to deal with all issues of mutual
            interest including the exchange of all data relevant to the
            management and operation of the water resources and systems
            and mutual prevention of harm to water resources.

        i.  The subcommittee shall agree upon its agenda and upon the
            procedures and manner of its meetings, and may invite
            experts or advisers as it sees fit.

    32. Planning and Zoning:

        a.  Authorities, powers and responsibilities in this sphere,
            except in the Settlements and the Military Installation
            Area, shall be transferred to the Palestinian Authority
            subject to the following.

        b.  Planning schemes, bylaws and regulations in effect in the
            Gaza Strip and the Jericho Area prior to the signing of this
            Agreement shall remain in force, unless amended or abrogated
            in accordance with this Agreement.

        c.  The Palestinian Authority may amend, abrogate or promulgate
            planning schemes, and issue licenses and exemptions within
            its jurisdiction, provided that such acts are consistent
            with the provisions of this Agreement.

        d.  As part of its procedure, the Palestinian Authority shall
            publish planning schemes in the form of law. The Palestinian
            Authority shall provide the CAC with a copy of it.

        e.  If Israel considers such a plan to be inconsistent with the
            terms of this Agreement, including Annex I, it may, within
            thirty (30) days of the receipt by the CAC of such a plan,
            bring it for consideration by a special subcommittee of the
            CAC and/or request additional information regarding the
            plan.

            The Palestinian Authority shall respect the recommendations
            of the subcommittee. Pending the completion of such a
            consideration process, and due settlement of the matter in
            accordance with the provisions of this Agreement, the
            planning procedures shall not be finalized.

    33. Direct Taxation:

        This sphere includes, inter alia, income tax on individuals and
        corporations, property taxes, municipal taxes and fees, as
        formulated in Annex IV.

    34. Indirect Taxation:

        This sphere includes, inter alia, VAT, purchase taxes on local
        production and import taxes, as formulated in Annex IV.

    35. Environmental Protection:

        a.  Israel and the Palestinian Authority shall act for the
            protection of the environment and prevention of
            environmental risks, hazards and nuisances.

        b.  Israel and the Palestinian Authority shall respectively
            adopt, apply and ensure compliance with
            internationally-recognized standards concerning acceptable
            levels of land, air, water and sea pollution, and acceptable
            levels of treatment and disposal of solid and liquid wastes;
            for the use and handling of hazardous substances, including
            pesticides, insecticides and herbicides, and standards for
            the prevention and abatement of noise, odor, pests and other
            nuisances which may affect each side and the Settlements and
            the Military Installation Area.

        c.  The Palestinian Authority shall take the appropriate
            measures to prevent the uncontrolled discharge in the Gaza
            Strip and the Jericho Area of sewage and effluence to water
            sources including underground and surface water and rivers,
            and to promote the proper treatment of sanitary and
            industrial waste water.

        d.  In the event that Israel or the Palestinian Authority
            considers that there might be a threat to its environment,
            any relevant information concerning the development activity
            and its environmental impact shall be provided by the
            relevant side.

        e.  Israel and the Palestinian Authority shall respectively
            operate an emergency warning system in order to respond to
            events or accidents which may generate environmental
            pollution, damage or hazards. A mechanism for mutual
            notification and coordination in cases of such events or
            accidents shall be established.

        f.  Israel and the Palestinian Authority shall cooperate in
            implementing agreed principles and standards concerning the
            protection of the Mediterranean Sea, the protection of the
            ozone layer, the control of movement of hazardous wastes and
            their disposal, the restriction of trade in endangered
            species of wild fauna and flora, and the conservation of
            migratory species of wild animals.

        g.  Israel and the Palestinian Authority shall establish within
            the CAC an Environmental Experts Committee for the
            coordination of environmental issues, to be convened when
            the need arises.

    36. Gas and Petroleum:

        a.  This sphere includes, inter alia, distribution, supply,
            licensing, sales, exploration and production of gas and
            petroleum in the Gaza Strip and the Jericho Area.

        b.  In authorizing the construction or operation of gas and
            petroleum facilities (including gas and petrol stations), a
            safety distance from the Settlements and the Military
            Installation Area shall be observed by the Palestinian
            Authority.

        c.  The color of all gas cylinders in use in the Gaza Strip and
            the Jericho Area shall be different than that in use in
            Israel.

        d.  Israel and the Palestinian Authority agree to cooperate
            concerning the exploration and production of oil and gas in
            cases of joint geological structures lying partly in Israel
            or the West Bank and partly in the Gaza Strip or the Jericho
            Area.

        e.  Transfer of gas or fuel products through or to Israel and
            the West Bank shall be in accordance with Israeli standards
            concerning safety, security and environmental protection,
            and in accordance with the arrangements regarding entry into
            Israel.

        f.  Policies of pricing, taxation, import and marketing
            regarding gas and petroleum are dealt with in Annex IV.

    37. Insurance:

        a.  This sphere includes, inter alia, licensing of insurance
            companies, insurance agents and supervision of their
            activity.

        b.  Arrangements regarding the compulsory insurance of motor
            vehicles and the compensation of road accident casualties,
            in view of transportation between the Gaza and the Jericho
            area, are dealt with in Annex IV.

    38. Treasury:

        a.  In view of the need for a smooth transfer of powers and
            responsibilities, Israel shall provide the Palestinian
            Authority, through a team of Palestinian auditors, with all
            the details concerning the Civil Administration budget
            allocated for the Gaza Strip and the Jericho Area and the
            revenues, expenses and accounts. It shall also provide
            details regarding the Civil Administration's existing
            financial system in the Gaza Strip and the Jericho Area.

        b.  (1) Israel shall transfer to the Palestinian Authority all
                the Gaza Strip and the Jericho Area Civil Administration
                funds and bank accounts as well as movable property.

            (2) Israel shall provide the Palestinian Authority with a
                list of the Civil Administration departments and their
                immovable offices, storerooms, warehouses, etc.

            (3) Where such immovables are situated on private property,
                including property owned by absentees, Israel shall
                provide the Palestinian Authority with the contracts
                between the Civil Administration and the owners of such
                property.

        c.  (1) Israel shall bring to an end all the Gaza Strip and the
                Jericho Area Civil Administration service contracts
                detailed in Appendix E attached to this Annex.

                Upon the transfer of powers and responsibilities, Israel
                shall provide the Palestinian Authority with copies of
                confirmations from the contractors declaring that they
                have no claim or demand concerning these contracts.

            (2) Civil Administration development contracts, the duration
                of which extends beyond the transfer of powers and
                responsibilities, as detailed in Appendix E, shall be
                transferred to the Palestinian Authority and shall
                remain in force.

            (3) Civil Administration contracts concerning leasing or
                renting Waqf, absentee or private property shall be
                transferred to the Palestinian Authority and shall
                remain in force.

            (4) All contracts entered into by the Custodian of Absentee
                and Governmental Property for renting and leasing land
                shall be transferred to the Palestinian Authority, and
                Israel shall give notice of such to the tenants and
                lessees. It is understood that following the transfer of
                such contracts the Palestinian Authority shall have full
                discretion to take any decision regarding these
                contracts.

        d.  After the transfer of authorities, powers and
            responsibilities in this sphere, if Israel is sued with
            regard to the contracts and obligations referred to in
            subparagraph c. above, the Palestinian Authority shall
            reimburse Israel for the full amount awarded by any court or
            tribunal.

        e.  Where legal proceedings are brought in respect of such a
            claim, Israel will notify the Palestinian Authority and
            enable it to participate in defending the claim.

        f.  Upon the transfer of powers and responsibilities, the
            Palestinian Authority shall be solely responsible for any
            claim regarding its actions pursuant to the transfer.

        g.  Israel shall provide the Palestinian Authority with copies
            of the contracts listed in Appendix E in order to enable it
            to make a decision on new contracts which it may conclude.
            If such contracts are not written in Arabic, Israel shall
            provide the Palestinian Authority with a translation into
            Arabic.




                                Annex II

                               APPENDIX A


1.   The Naaran Synagogue (Ein Diuk).

2.   The Jewish Cemetery in Tel Sammarat.

3.   "Shalom Al Israel" Synagogue in Jericho.

4.   The Jewish Synagogue in Gaza city.




                                Annex II

                               APPENDIX B


To be added in the future.




                                Annex II

                               APPENDIX C

                Technical Schedule Regarding Population
                       Registry and Documentation


Note: The following is only part of this Appendix. Other sections of
this Appendix shall be added in the future.

1.  Passport/travel document format

    a.  General specifications

        (1) Languages: Arabic and English.

        (2) External color: green.

        (3) Front cover titles will be Palestinian Authority,
            Passport/Travel Document (shall be written in letters of
            equal size).

        (4) Each person, without reference to age, will hold his/her own
            document.

        (5) The validity of the document shall be up to 3 years.

        (6) The number of pages: not less than 32 pages (to be checked
            by international standards).

        (7) Perforation of the Passport/Travel Document number shall be
            in at least half of the pages.

    b.  Internal page of external cover

        (1) The same title as external.

        (2) Text: in Arabic and English as follows:

            "This Passport/Travel Document is issued pursuant to the
            Palestinian Self Government Agreement according to the Oslo
            Agreement signed in Washington on September 13, 1993."

        (3) The rest of the text: as usual.

        (4) Bottom of page: < signature + seal > of the Palestinian
            Authority.

    c.  Page number 1

        Number of the Passport/Travel Document.

    d.  Page number 2 - the sticker

        (1) Same information as today. Format: to be discussed.

        (2) Each name shall be titled for ease of reading (first name,
            family name, etc.).

    e.  Page number 3

        (1) Address of holder.

        (2) Text: "The bearer of this document ... "

    f.  Visa pages

        No comments.

    g.  Last page (32 or other)

        The text of paragraph 1 will be:

        "This passport/travel document, as long as it is valid, will
        enable its bearer on return from abroad, to enter the Gaza Strip
        and the Jericho Area."

        Note: The aforementioned is meant to enable passage through
        Israeli border control without the need of an entrance visa.




                                Annex II

                               APPENDIX D

                Technical Schedule:  Telecommunications


Pursuant to the telecommunications principles agreed upon on February
23rd, 1994, the following modalities and technical details have been
determined by the two sides:

1.  General

    The Palestinian Authority shall use or reassign within its
    jurisdiction sections of frequencies covering all its required
    services within the bands L.F., M.F., H.F., V.H.F. and U.H.F. up to
    960 MHz, to satisfy its present and future needs, as specified in
    the principles referred to above. The growing communication needs of
    the Palestinian Authority in the spheres of administration, police
    and civilian sectors in the Gaza Strip and the Jericho Area will be
    satisfied within a framework of coordination and cooperation.

    To that end, the Palestinian Authority shall present its
    requirements through the Joint Subcommittee of Technical Experts.
    Frequencies or sections of frequencies in the aforementioned bands
    will be assigned, or an alternative thereto providing the required
    service within the same band, or the best possible alternative
    thereto, acceptable by the Palestinian side and agreed upon by
    Israel in the Joint Subcommittee of Technical Experts.

2.  Technical Details of the Initial Requirements The following is the
    first batch of initial requirements of immediate concern coinciding
    with the entry of the Palestinian Police and establishment of the
    Palestinian Authority.

    Further details and additional requirements will be presented
    through the Joint Subcommittee of Technical Experts at a later
    stage.

    a.  Wireless:

        (1) DCO - will operate frequencies within a 410 to 430 MHz band.

        (2) PDPF

        (3) Cellular telephones

    b.  Radio and Television

    c.  Microwave:

        Palestinian requirements for microwave communications above the
        frequency 1 GHz will be satisfied using the same modality and
        will adhere to the technical parameters outlined in paragraph
        B.2 of the above principles of February 23rd, 1994.



                                Annex II

                               APPENDIX E


                           Service Contracts

                    (Costs in thousands of shekels)


+----------------------------------------------------------------+
| Name of Supplier             Type of Arrangement   Annual Cost |
+----------------------------------------------------------------+
+----------------------------------------------------------------+
| Gertner Gibor                Contract                  145     |
| Beersheva Technical College  Contract                   50     |
| Adnat Communications         Contract                  150     |
|                              (Rolling Stone)                   |
| Halwa                        Contract                   20     |
| Hiram Landau                 Contract                  870     |
| Telrad                       Contract                 5900     |
| Beersheva Flour Mill         Contract                  270     |
| Isralift                     Contract                   40     |
| Eurocom                      Per service call           70     |
| Yitzhak Shapira              Agreement                  20     |
| Hertz Fogel                  Contract                   34     |
| Mahud                        Contract                   10     |
| Margolin Ron                 Contract                  350     |
| Moshe Ravid                  Contract                   10     |
| Malal Software Industries    Contract                  250     |
| Malam Systems                Contract                 1700     |
| Magal Infrastructure         Contract                   50     |
| Ahskelon Mechanical Laundry  Contract                   65     |
| Nachman Nir - Engineer       Contract                   40     |
| Simona Bar Sagi              Contract                    4     |
| Pioneer Steel                Contract                  517     |
| Azata Flowers                Contract                   32     |
| Krawitz                      Contract                  180     |
| R.N. Construction            Contract                  250     |
| Engineering                                                    |
| Reshef Berder                Contract                    3     |
| Shorashim                    Contract                   33     |
| Shavit Meshulam              Contract                    2     |
| Sha'atit                     Contract                  132     |
| Tadiran                      Contract                 1200     |
| Tenuva                       Contract                   80     |
| Tim Computers                Contract                 3500     |
| Engineering Concrete Co.     Contract                 1100     |
+----------------------------------------------------------------+


+----------------------------------------------------------------+
| Name of Supplier             Type of Arrangement   Annual Cost |
+----------------------------------------------------------------+
+----------------------------------------------------------------+
| Osma Haggan Alhadiri         Tender                    750     |
| Osma Bakar Alhazander        Tender                    409     |
| Ismail Mussa Asbed           Tender                   1750     |
| Agudat Hatzdaka Printers     Tender                    260     |
| Keutzer Trading Store        Tender                    131     |
| Alzafadi Trading Co.         Tender                    480     |
| Hamadi El Salem              Tender                     15     |
| Roters Co.                   Tender                    210     |
| Akila Fuel Co.               Tender                      7     |
| Bus Co.                      Tender                    100     |
| Morad Trading Co.            Tender                     36     |
| Beno Razek                   Tender                   1100     |
| Mahmad Feisal Mahanna        Tender                    312     |
| El Sharek Library            Tender                     26     |
| Mahmad Rasmi Alkardi         Tender                     32     |
| Mahmad Hassin Ishmila        Contract                  150     |
| Nazer Ladbai Hamda           Contract                  106     |
| Sammi Saleiman Daoud         Contract                  206     |
| Salem Abu Dalal              Contract                 1700     |
| Aabed Abdalla Alpra          Contract                  100     |
| Mahana and Co.               Contract                 5600     |
| Jerusalem Medicine Co.       By order                  108     |
| Bir Zeir Co.                 By order                  580     |
| Asmi Ltd.                    By order                   13     |
| Plastin                      By order                   45     |
| Eastern Chemical Co.         By order                   19     |
| Nables Dinat Nazmi           By order                    3     |
+----------------------------------------------------------------+



+----------------------------------------------------------------+
| Name of Supplier             Type of Arrangement   Annual Cost |
+----------------------------------------------------------------+
+----------------------------------------------------------------+
| Ackerstein                   Reg. Commitments (orders)  42     |
| Agis                         "       "      "         1500     |
| I.T.S.                       "       "      "           40     |
| Abic                         "       "      "          130     |
| CRS Assoc.                   "       "      "          356     |
| Isotope                      "       "      "           17     |
| Ilex                         "       "      "          110     |
| Astro                        "       "      "          300     |
| Ofek Nitzpeh Ramon           "       "      "           13     |
| I.T.T. Macro                 "       "      "          100     |
| Ampa Ltd.                    "       "      "           88     |
| Ayalon Meromi                "       "      "          135     |
| Yakobovitch                  "       "      "          500     |
| Elyakim Ben Ari              "       "      "         1000     |
| Avraham Goldberg             "       "      "           35     |
| Orda Print                   "       "      "          203     |
| Izodan                       "       "      "           10     |
| I.I.S.                       "       "      "           81     |
| Arka                         "       "      "         1700     |
| Bioferma                     "       "      "           94     |
| Balgar                       "       "      "           11     |
| Baktab Dragnosti             "       "      "            8     |
| Burei Book Co.               "       "      "           13     |
| Beeper Communications        "       "      "          120     |
| Binat Communications         "       "      "          281     |
| Bell Art Marketing Co.       "       "      "           78     |
| Gamai Zur                    "       "      "            5     |
| Grafit                       "       "      "           29     |
+----------------------------------------------------------------+



+----------------------------------------------------------------+
| Name of Supplier             Type of Arrangement   Annual Cost |
+----------------------------------------------------------------+
+----------------------------------------------------------------+
| John Bryce                   Regular Tenders           332     |
| Guttman Architects           "       "                   6     |
| Zover Medical Equipment      "       "                  35     |
| De Greit Equipment           "       "                  79     |
| Denograf                     "       "                   8     |
| Difries                      "       "                   6     |
| Zerot Pictures               "       "                  13     |
| Dekel Printers               "       "                   4     |
| Digital                      "       "                 403     |
| Be'eri Printers              "       "                 203     |
| Hamashbir                    "       "                  73     |
| Hamadaf                      "       "                 206     |
| Hagal Hahadash               "       "                  10     |
| Lamesheh Co.                 "       "                  77     |
| Hyper Techni                 "       "                 138     |
| Balmut                       "       "                  20     |
| Electrical Engineering       "       "                  62     |
| Zameret Curtains             "       "                  10     |
| Zik Eish                     "       "                 106     |
+----------------------------------------------------------------+



+----------------------------------------------------------------+
| Name of Supplier             Type of Arrangement   Annual Cost |
+----------------------------------------------------------------+
+----------------------------------------------------------------+
| Herut Elevators              Regular Orders             35     |
| Hagim                        "       "                  10     |
| Chaimov                      "       "                  70     |
| Intermid                     "       "                 920     |
| Kartin                       "       "                 460     |
| Hagai                        "       "                 330     |
| Totenauer                    "       "                  25     |
| Teva                         "       "                  50     |
| Total Graphics               "       "                  10     |
| Techno Realco                "       "                 470     |
| Yaron Chemicals              "       "                  18     |
| Yegev Ltd.                   "       "                  33     |
| Isramedcom                   "       "                  45     |
| Yediot Aharonot              "       "                   5     |
| Yitzhak Benni                "       "                 504     |
| Ifat Information Center      "       "                  51     |
| Radet                        "       "                 500     |
| Livnat Ltd.                  "       "                  33     |
| Lahavot                      "       "                 ---     |
| Ligad                        "       "                   4     |
| Laragent                     "       "                 ---     |
| Logi                         "       "                  14     |
| Maksima                      "       "                 581     |
| Magen David                  "       "                 100     |
| Ma'atak                      "       "                  12     |
| Mad Technika                 "       "                1280     |
| Chai Laboratories            "       "                   8     |
| Maf'il                       "       "                   6     |
| Mizauk                       "       "                  13     |
| Pereg Works                  "       "                 670     |
| Mei Eden                     "       "                  56     |
| Suliman Levin                "       "                 136     |
| Sigma Israel                 "       "                  70     |
| Sadan Safes                  "       "                  16     |
| Seat Carmel                  "       "                  20     |
| Super Pile                   "       "                  13     |
| Einav                        "       "                   9     |
| Alkades Newspaper            "       "                  65     |
| Fudi Industries              "       "                   8     |
| Pharma Best                  "       "                  30     |
| Pharmatud                    "       "                  34     |
| Zemel                        "       "                   6     |
| Katzko                       "       "                 170     |
| Rezenfal                     "       "                  23     |
| Rekah                        "       "                   7     |
| Rav Bariah                   "       "                  58     |
| Shmerling                    "       "                  27     |
| Shamrad Electronics          "       "                  13     |
+----------------------------------------------------------------+



                           Development Contracts


The Beit Hanun Bridge - constructed by the Public Works Department. The
total cost is 1 million NIS.

The Sheikh Radwan School - The constructor is the Public Works
Department that has contracts with sub-contractors. The total cost is
3.750 million NIS.

The Jericho Retirement Retirement Home The constructor is the Housing
Department that has contracts with sub-contractors.
.

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

al@mashriq

980606/bl