December 1, 1994


(Communicated by Foreign Ministry Spokesman)

At the end of the meeting between countries contributing to the Palestinian Authority, the Norwegian Foreign Minister announced that agreement had been reached between the Palestinians, the donor countries and Israel on funding for current expenditures of the Palestinian Authority. The funding is intended to enable the continued establishment of a Palestinian administration, and the payment of salaries to the Palestinian police, as well as to fund early empowerment in the five areas.

The Palestinians and Israel have also agreed on cooperation in the creation of a tax collection mechanisms for the West Bank and for Gaza.

Accordingly, the donor countries have complied with the joint request of the Palestinians and of Israel and will allocate $102 million to the Palestinian Authority. An additional $23 million has been allotted for short-term employment projects.

Also decided upon was the creation of a mechanism, in conjunction with Israel, through which the donors will be able to both improve their coordination with the Palestinians and ensure the efficient use of their contributions.

At a press conference following the meeting, Foreign Ministry Director-General Uri Savir said that Israel ‘also has an interest in creating jobs in Gaza, including Israeli-Palestinian joint ventures, such as the industrial park to be constructed near the Erez checkpoint. The mutual responsiveness of Israel in recognizing the importance of creating a positive economic dynamic in Gaza and of the Palestinians, to Israel’s vital security needs, is the key to the success of the agreement.’

The Coordinator of Government Activities in the Territories, Major-General Danny Rothschild, announced that the early transfer of authority in the fields of health and taxation will take place today (Thursday), December 1, 1994.