PROTOCOL ON FURTHER TRANSFER OF POWERS AND
August 27, 1995
It is hereby agreed between the Government of the State of Israel and
the Palestine Liberation Organization (hereinafter "the PLO), the
representative of the Palestinian people as follows:
Article I - Further Transfer of Powers and Responsibilities
Israel shall transfer and the Palestinian Authority shall assume the
authorities, powers and responsibilities in the West Bank from the Israeli
government and its Civil Administration in the following spheres: Labor,
Commerce and Industry, Gas and Petroleum, Insurance, Postal Services,
Local Government and Agriculture, as specified in this Protocol
(hereinafter referred to as "the Eight Spheres").
Article II - Framework and Scope
- The Annexes to this Protocol regarding each of the Eight Spheres
(hereinafter "the Annexes") shall be incorporated in the Protocol
concerning Civil Affairs to the Interim Agreement to be concluded
between the Parties (hereinafter "the Interim Agreement").
- Pending the implementation of the Interim Agreement with regard to
the Eight Spheres, the provisions of the Annexes shall be subject to
the provisions of this Protocol and to the Appendices attached to
the Annexes (hereinafter "the Appendices").,P>
- The jurisdiction of the Palestinian Authority under this Protocol
shall not apply to issues that will be negotiated in the permanent
status negotiations in accordance with the Declaration of Principles
on Interim Self Government arrangements signed at Washington DC on
September 13, 1993 and the Agreed Minutes thereto.
Article III - Legislative Powers of the Palestinian Authority
Legislative powers related to, or within, each of the Eight Spheres
shall be transferred to the Palestinian Authority upon the
implementation of the Interim Agreement with regard to the Eight
Spheres. Notwithstanding the above, the Palestinian side shall have
the right to issue administrative internal procedures regarding the
Article IV - Rights, Liabilities and Obligations
- The provisions of Article XXII of the Agreement on the Gaza
Strip and the Jericho Area as signed at Cairo on May 4, 1994, (hereinafter
"the Gaza-Jericho Agreement") shall apply to the Eight Spheres.
- In accordance with paragraph 1 above, Israel shall provide the
Palestinian Authority with the information it has regarding
pending and anticipated claims brought before any court or tribunal
against the Israeli side with regard to the Eight Spheres.
- Without prejudice to paragraph 1 above, the Palestinian Authority
shall review Civil Administration contracts in the Eight Spheres which
extend beyond the date of the transfer, with a view to deciding which
contracts will remain in force and which will be terminated.
A list of all such contracts is attached to this Protocol as Schedule
Article V - Law Enforcement
- Arrangements regarding the operation of civilian inspectors to
monitor compliance with laws and regulations in each of the Eight
Spheres, shall be agreed upon within the Civil Affairs Coordination
and Cooperation Committee established in accordance with the
Gaza-Jericho Agreement (hereinafter, "the CAC"). Such inspectors may
conduct internal inquiries in the Eight Spheres. In any event, such
inspectors shall not wear uniforms of a police or military nature or
- All powers and responsibilities regarding law enforcement,
including investigation, judicial proceedings and imprisonment, will
continue to be under the responsibility of the existing authorities in
the West Bank.
Article VI - Modalities of Transfer
- The transfer of powers and responsibilities in the Eight Spheres
pursuant to this Protocol will be implemented on the 1st day of
- The transfer of powers and responsibilities shall be coordinated
through the CAC and shall be implemented in accordance with the
arrangements set out in this Protocol in a smooth, peaceful and
- The Palestinian Authority will continue to employ the Palestinian
employees of the Civil Administration who are currently employed in the
offices included in each of the Eight Spheres, without derogating from the
powers and responsibilities of the Palestinian Authority to deal with all
employee related matters in the Eight Spheres. The Palestinian Authority
shall maintain the rights, including pension rights, of present and
- The main office of each of the Eight Spheres will be situated in the
Jericho Area or in the Gaza Strip. The two sides agree on the operation of
the existing subordinate offices and on the establishment of additional
subordinate offices in the West Bank, if necessary, in such locations as
- With the transfer of powers and responsibilities, the Civil
Administration shall transfer all its movable and immovable property which
is necessary for the continued operation of the powers and
responsibilities transferred therein. This property includes, inter alia,
equipment, registers, files, computer programs and reports.
Article VII - Relations Between the Two Sides
- With regard to each of the Eight Spheres, the Palestinian
Authority shall coordinate with the Civil Administration on issues
relating to other spheres, and to powers and responsibilities not
transferred to the Palestinian Authority.
- Each side will assist and support the other side in promoting the
effective exercise of its powers and responsibilities.
- The Palestinian Authority will notify the military government and its
Civil Administration regarding any planned large-scale events or mass
gatherings in respect of the Eight Spheres.
- The Palestinian Authority shall prevent any activities with a military
or police orientation within each of the Eight Spheres.
- Nothing in this Protocol shall affect the continued authority of the
military government and its Civil Administration to exercise their powers
and responsibilities with regard to security and public order, as well as
with regard to other powers and responsibilities not transferred.
- Provisions in the Annexes referring to the Interim Agreement (such as
references to the sections on the Environment or Transportation or to the
Security Annex) shall be read as relating to the continued authority of
the military government and its Civil Administration.
Article VIII - Budgetary and Revenue Issues
All budgetary and revenue issues regarding the Eight Spheres will be
discussed separately between the two sides.
Article IX - Final Clauses
- This protocol shall enter into force on the date of its
- The arrangements established by this Protocol shall remain in force
pending their replacement or cancellation by the Interim Agreement or by
any other agreement between the Parties.
- The Annexes, Appendices and Schedule attached to this Protocol shall
constitute and integral part hereof.
Done at Cairo this 27th day of August 1995.
For the Government
of the State of Israel
For the PLO
Annex Concerning the Sphere of Labor
- The sphere of Labor includes, inter alia, rights of workers, labor
relation, labor conciliation, safety and hygiene in work places, labor
accidents and compensation, vocational and professional training courses,
cooperative associations, professional work associations and trade unions,
heavy machinery equipment.
- The two sides shall establish agreed procedures for mutual recognition
of professional certificates and diplomas.
- The Palestinian side shall ensure the completion of vocational and
professional training courses currently being conducted by the Civil
Administration. In this regard, the Civil Administration will transfer to
the Palestinian side a proportionate amount of fees received on account of
such courses, relating to the period following the date of transfer.
- The Palestinian side shall continue to hold vocational training
courses, at least to the same extent as has been undertaken by the Civil
Administration, inter alia, in the following professions: heavy-vehicle
and public transport drivers, garage managers, vehicle technicians,
vehicles testers, driving teachers and driving school managers.
- Cooperative Associations, Professional Work Associations and Trade
Unions should act in a manner that does not violate the Cooperative
Associations laws, the Professional Work Associations laws and the Trade
- The Palestinian side shall inform the Israeli side of any work related
accident resulting in the injury of an Israeli. The Israeli side may
conduct an investigation of such an accident coordination with the
- All matters regarding the production and use of explosives and
gunpowder shall be dealt with in the Security Annex.
Annex Concerning the Sphere of Commerce and Industry
- This sphere includes, inter alia, import and export, the
planning and formulation and implementation of policies, as well as the
licensing and supervision of all industrial and commercial activities,
including commodities, services, wights and measures and the regulation of
- In authorizing the establishment and operation of industrial plants,
factories or concerns in the West Bank, both sides shall ensure that there
is no detrimental impact on the environment, and on the safety of the
other side. Matters regarding the environment are dealt with in Section __
- The production and use of weapons, ammunition or explosives are dealt
with in the Security Annex.
- The economic aspects of this sphere are dealt with in Annex __
Annex Concerning the Sphere of Gas, Fuel and Petroleum
- This sphere includes, inter alia, the planning, formulation and
implementation of policies, as well as the licensing and supervision of
gas, fuel and petroleum facilities. For the purposes of this paragraph,
"gas, fuel and petroleum facilities" shall include, inter alia, all gas
and petrol stations, installations, terminals and infrastructure, as well
as agencies for the marketing, distribution, transportation, storage, sale
or supply of gas, fuel or petroleum products. This sphere also includes
the licensing and supervision of the import, export, and transportation in
addition to the exploration, production and distribution of gas, fuel and
- In authorizing the establishment and operation of gas, fuel and
petroleum facilities as defined in paragraph 1, the Palestinian side shall
ensure that there is no detrimental impact on the environment or on the
safety of Israel, the settlements and military installations and that a
safety distance from Israel, the settlements and military installations is
observed. Accordingly, the Palestinian side shall apply the American,
British, and/or Israeli safety and environmental standards.
- The color of all gas cylinders in use by Palestinians in the West Bank
shall be different than that in use in Israel and by Israelis.
- The Palestinian side will notify the Israeli side of
any exploration and production of oil and gas carried out by the
Palestinian side or with its permission.
- Israel and the Palestinian side agree to cooperate concerning
production of oil and gas in cases of joint geological structures.
- All transportation of gas or fuel products, in Israel
and in the West Bank, shall be in accordance with the respective laws
applying which, in any event shall not fall short of the international
requirements and standards concerning safety and environmental protection
as applied by Israel. The transportation of gas and fuel products into
Israel, the settlements and military installations shall further be
subject to the requirements and modalities regarding entry into Israel.
- In order to facilitate the movement of transportation of gas or fuel
products in the West Bank:
- The Palestinian side will issue permits to Palestinian owners,
drivers and exports of vehicles transporting gas or fuel products. The
issue of such permits shall be governed by the criteria regarding the
recruitment to the Palestinian police according to this Agreement. The
issue of such permits is not contingent upon the approval of the Israeli
side. The Palestinian side shall notify the Israeli side of the permits
issued by it.
- The Palestinian side shall ensure that vehicles transporting gas
or fuel products, as well as their parking lots, shall be guarded against
any theft or unauthorized use. The Palestinian side shall inform the
Israeli side, at the earliest opportunity, of any suspected theft or
unauthorized use of such vehicles.
- The Israeli side shall cooperate with the Palestinian side with regard
to the establishment by the Palestinian side of 3-4 storage facilities for
gas and petroleum, including in facilitating, inter alia, location, land a
technical assistance in order to secure the purchasing needs oft eh
Palestinians for the Israeli market.
- Matter regarding the environment and transportation are dealt with i
Section __ (Environmental Protection) and Section __ (Transportation),
Appendix Regarding the Sphere of Gas and Petroleum
Powers and responsibilities regarding exploration and production of oil
and gas shall be transferred upon the transfer of the Sphere of Gas and
Petroleum in accordance with the Interim Agreement.
Annex Concerning the Sphere of Insurance
- This sphere includes, inter alia, the licensing of insurers and
insurance agents, and the supervision of their activities, including
supervision of insurer's deposits and funds and the road safety fund.
- Arrangements regarding the compulsory insurance of motor vehicles and
the compensation of road accident victims are dealt with in Article XI
(Insurance Issues) of the Protocol on Economic Relations signed in Paris
on April 29, 1994 (hereinafter: Article XI).
- The Existing Fund, as defined in Article XI, shall be
transferred to the Palestinian side. This transfer will include all the
Existing Fund's assets and liabilities.
- The Palestinian side shall be responsible for all liabilities of the
Existing Fund whether arising from accidents occurring prior or subsequent
to the date of transfer.
- Accordingly, Israel will cease to bear any financial responsibility
in this respect. If Israel is sued with regard to the aforesaid
liabilities, the Palestinian side will reimburse Israel for the full
amount awarded by any court against it in this respect and shall enable
the Palestinian side to participate in defending the claim.
- With a view to assisting the Palestinian side to deal with claims
against the Existing Fund, the following provision shall apply:
- A joint experts committee shall be established to examine
claims against the Existing Fund (hereinafter "the Joint Committee").
- Without prejudice to paragraph 3(c) above, the Joint Committee shall
examine and estimate whether the assets of the Existing Fund are
sufficient to meet its liabilities as they stand on the day of the
transfer. In the event that the Joint Committee concludes that the
Existing Fund's assets are not sufficient to meet its liabilities, the
Israeli side shall cover the agreed deficit, including claims incurred but
not reported (IBNR). If the Joint Committee is unable to agree on the
above amount, the matter shall be referred to the JEC (Joint Economic
- The Joint Committee shall submit recommendations to the Palestinian
side concerning administrative or legal changes with a view to expediting
settlement of the claims.
- The Joint Committee shall conclude its work within three months. The
two sides may agree on a one time extension for another three
- Additionally, the Israeli side will provide to the Palestinian side
all the necessary assistance with regard to the Existing Fund, and advice
and consultation when requested.
- All claims, including pending claims, against the Existing Fund should
not be brought before or heard by any Israeli court or tribunal and should
only be brought before the Palestinian Courts. To this end, the two sides
may take all necessary measures, including if possible, the enactment of
Annex Concerning the Sphere of Postal Services
- This sphere includes, inter alia, the planning, formulation and
implementation of policies, as well as the management and supervision of
post offices, postal services and all monetary transactions and activities
in postal units (publicly known as "the Postal Bank").
- The Palestinian side shall issue postage stamps and postal stationary
(hereinafter "stamps"), date stamps and all other related materials,
subject to the following provisions.
- Stamps shall include only the terms "the Palestinian Council" or
"the Palestinian Authority", the face value and the subject. Should date
stamps include the name of the issuing authority, only the above-mentioned
terms may be used.
- The face value shall be stated only in one of the agreed legal
currencies circulating in the West Bank as detailed in Annex __ (Economic
- The design, symbols, wording and subjects of stamps and date stamps
issued by the Palestinian side will be in the spirit of the peace.
- In setting postal rates for international postal services, both sides
shall coordinate in such a way as to prevent mutual economic harm.
- Both sides shall ensure the efficient transmission and delivery of
postal items, including parcels, destined for or originating from the
other side. Similarly, they shall ensure the efficient transmission and
delivery of such postal items arriving from, or destined for, foreign
- The modalities and arrangements for sending and receiving all postal
items, including parcels, between the two sides will be arranged by means
of a commercial agreement between the Israel Postal Authority and the
- The modalities and arrangements for sending and
receiving postal items, including parcels, between the Palestinian
Authority and foreign countries will be arranged by means of commercial
agreements between the PLO, for the benefit of the Palestinian Authority,
and the Postal Authorities of Jordan and Egypt, and a commercial agreement
between the Palestinian Authority and the Israel Postal Authority.
- Without derogating from the generality of Article __ of this Agreement
(foreign relations), the status of the Palestinian side to this Agreement
in the Universal Postal Union will remain as it is at present, and the
Palestinian side will not be party to any action to alter or change its
- The relevant customs principles detailed in Annex __ (Economic
Protocol) shall also apply to postal items, including parcels, transmitted
to the West Bank.
Appendix Regarding the Sphere of Postal Services
- The powers and responsibilities regarding the "Postal Bank"
(monetary transactions and activities in postal units) shall be
transferred upon the transfer of the Sphere of Postal Services in
accordance with the Interim Agreement.
Pending the Interim Agreement, the Civil Administration will continue to
provide "Postal Bank" services.
- In the event that the Civil Administration makes use of the services
of the postal units managed by the Palestinian Authority for the purpose
of granting "Postal Bank" services, it shall transfer to the Palestinian
Authority a proportional amount from the amounts transferred to it by the
Israel Postal Authority, which relates to the services provided by the
Annex Concerning the Sphere of Statistics
- This sphere includes, inter alia, all phases of planning,
producing and disseminating and archiving statistics from census and
surveys in all areas of statistics including, but not limited to,
demographic, social, economic, area, and environmental matters.
- Israel shall transfer from the Civil Administration to the Palestinian
side all the necessary material for maintaining and running the
statistical system, such as:
- The estimation procedures, forms of questionnaires,
manuals, coding annuals, procedures for and results of quality control
measures and analysis of surveys.
- The statistical maps.
- The sampling frames, including the household listings.
- The basket of consumer goods and all related material, including the
weights used for the CPI.
- Any other professional statistical materials whenever
Any other professional statistical means and methods used by the military
government, Civil Administration, or on their behalf, shall also be
transferred to the Palestinian side.
- The Israeli side shall, through a Joint Committee to be
established, transfer to the Palestinian side, if requested, any primary
data from censuses and surveys, carried out by the military government,
Civil Administration, or on their behalf, and archived administrative
records used by the military government, Civil Administration, or on their
- The Joint Committee shall decide upon the modalities and
arrangements concerning the transfer of the above-mentioned
- Issues relating to the right to be included in the Population Registry
will be dealt with in the Population Registry section of this
- The Israeli Central Bureau of Statistics and the Palestinian Central
Bureau of Statistics will maintain good working relations and will
cooperate in statistical matters.
Appendix Regarding the Sphere of Statistics
The Palestinian side may conduct censuses or canvasses subject to the
agreement determined in the Israeli-Palestinian Elections
Annex Concerning the Sphere of Local Government
- This sphere includes, inter alia, formulation and
implementation of Local Government policies, appointment of Local
Government officials, approval of Local Government budgets, tenders,
acquisitions, fees and tariffs, alteration of Local Government boundaries,
creation and dissolution of Local Government, Local Government election
processes, Local Government inspections and the creation of joint service
councils, city councils, in their capacity as local planning committees,
and the operation and maintenance of the municipal water and electricity
distribution systems and pricing of these services.
The term "Local Government" in this Annex includes municipal councils,
village councils and all other communities which lack municipal status.
- The Palestinian side has the right to make any and all alterations to
the Local Government boundaries in the West Bank, within areas A and B as
defined in the Security Annex.
- Issues relating to the provision of Local Government services to
settlements and to installations serving the Israeli military forces, are
dealt with in the relevant sections.
- The Palestinian side shall give notice to the Israeli side of any
Local Government elections. With a view to avoid friction in the context
of such elections, special security arrangements will be agreed in the
security liaison mechanism.
- In addition to the existing powers and responsibilities of a city
council, in its capacity as local planning committee, it shall also be
authorized to issue building permits for various purposes, including
factories, hospitals and schools, in accordance and subject to existing
detailed planning schemes in force.
- Municipal authorities shall continue to supply water and electricity
from existing systems in accordance with existing quantities and
- Matters regarding planning and zoning, water and electricity are dealt
with in Section __ (Planning and Zoning), Section __ (Water) and Section
__ (Electricity), respectively.
Appendix Regarding the Sphere of Local Government
Pending the transfer of powers and responsibilities in the Sphere of Local
Government in accordance with the Interim Agreement, the Palestinian
Authority shall have the powers and responsibilities transferred in
accordance with the Annex on this Sphere, subject to the following
- Any alterations made to boundaries of existing
local authorities shall be subject to the approval of the Civil
- The declaration of new local authorities, or of alterations made to
the status of existing local authorities, will not involve any change in
the powers and responsibilities and privileges of such local authorities
unless otherwise agreed between the two sides.
- The enactment or amendment of municipal by-laws shall only take effect
upon the approval of both sides.
Annex Concerning the Sphere of Agriculture
- This sphere includes, inter alia, veterinary services, animal
husbandry, all existing experimental stations, irrigation water which has
been allocated for this purpose), scientific data, forestry, pasture and
grazing, licensing and supervision of agriculture, the farming and
marketing (including export and import) of crops, fruit and vegetables,
nurseries, forestry products, and animal produce.
- Irrigation water, as well as facilities, water resources,
installations and networks used in agriculture shall be dealt with in
Section __ (Water).
- Relations in the agricultural sphere between the Israeli side and the
Palestinian side, including the movement of agricultural produce, are
dealt with in Annex __ (Economic Protocol).
- The two sides will cooperate in training and research, and shall
undertake joint studies on the development of all aspects of agriculture,
irrigation and veterinary services.
- Forestry is part of the Agriculture sphere and will be dealt with
separately in the Interim Agreement.
Appendix Regarding the Sphere of Agriculture
- Powers and responsibilities regarding forestry shall be
transferred upon the transfer of the Sphere of Agriculture in accordance
with the Interim Agreement.
- Pending the signing of the Interim Agreement, the Israeli side shall
maintain the existing quantities of irrigation water in the West Bank, in
accordance with existing practices.