Oslo, September 13, 1994


1. On the occasion of meeting in Oslo on September 13 for the first anniversary of the signing of the Declaration of Principles, Foreign Minister Bjoern Tore Godal, Chairman Yasser Arafat and Foreign Minister Shimon Peres declared their appreciation for the gradual implementation of the Declaration of Principles in Gaza and Jericho first and the beginning of the implementation of the agreement regarding early empowerment in the West Bank.

Mr. Arafat and Mr. Peres expressed their appreciation to the people and the Government of Norway for their unique role in the historic breakthrough between the Israeli people and the Palestinian people.

Representatives of the United States, the Federal Republic of Germany in her capacity as President of the European Union, Japan, the EU Commission and the United Nations were present at an unofficial meeting between the parties and the donor community.

2. The two sides declared their commitment to fully implement the Declaration of Principles and to continue the process between them based on the Declaration of Principles and on subsequent agreements.

3. The two sides declared that they see the role of the ongoing political process between them as contributing to the security of both sides and are committed to taking the necessary measures to put an end to acts of violence, moving to implement outstanding and mutual confidence building measures, promoting their economic relationship, and developing the economy of the Palestinian Authority.

4. In this context, the two sides have agreed to ask the Government of Norway, as chair of the Ad Hoc Liaison Committee, to convene an unofficial emergency meeting as soon as possible in Paris to be guided by the following principles and needs:

a. The two sides call on the donor community to make an immediate effort to meet the recurrent costs of the Palestinian Authority and the early empowerment.

b. Both sides accept the request by the AHLC chairman that they shall not bring before the donor community (the AHLC or the Consultative Group) those political issues that are of disagreement between them. They will deal with such issues between themselves, based on the Declaration of Principles and subsequent agreements.

c. The PLO reaffirms its commitment to develop the tax collection system of the Palestinain Authority in order to limit the timetable for foreign assistance to cover recurrent costs. Donor contributions to finance recurrent costs will gradually decrease with the increase of Palestinian revenues.

d. The emergency financial needs, including existing arrears, of the Palestinian Police should be financed by the donor community preferably until the end of 1994 only (and not exceeding the end of March 1995).

Mr. Arafat and Mr. Peres will together approach the Secretary- General of the United Nations to request that the United Nations Development Programme should serve as the mechanism for immediately channeling existing funds to the Palestinian Police.

e. The parties have decided that, based on donor contributions, they will sign an understanding setting out the responsibilities of the donors, Israel and the Palestinian Authority at next week’s meeting of the AHLC, concerning financing of the early empowerment based on Palestinian-Israeli cooperative efforts to establish a fully-functioning Palestinian tax collection mechanism. A draft understanding will be distributed among the donors prior to the meeting.

f. Subsequently, regarding the operation of the Holst Fund, the United States, Norway, the United Nations and others will commence a high level and intensive effort to generate funds and to reallocate existing funds. The United States has informed the parties that it will dispatch envoys to various capitals, including those in the region. Donors have advised that they will make a great effort to contribute to the Holst Fund and other recurrent cost instruments.

g. A special effort will be made to seek support for transitional projects and short-term job creation projects which donors can implement quickly.

h. The successful implementation of the above efforts to cover the urgent needs of the Palestinian Authority, the Palestinian Police and early empowerment will enable the donor community to focus on the longer-term development needs of Gaza and the West Bank.

i. In order to encourage fast implementation of Palestinian project development in the West Bank, the Civil Administration and PECDAR will discuss their means of cooperation under the existing system and procedures until full empowerment in the West Bank is reached.

5. Mr. Arafat and Mr. Peres expressed their satisfaction with the recent positive developments in the peace process, including the recent developments between Jordan and Israel, the recent statements by Syria and by Israel and the upcoming Casablanca conference.

Chairman Yasser Arafat
Foreign Minister Bjoern Tore Godal
Foreign Minister Shimon Peres