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3. Both sides will renew negotiations on Safe Passage immediately. As regards the southern route, the sides will make best efforts to conclude the agreement within a week of the entry into force of this Memorandum. Operation of the southern route will start as soon as possible thereafter. As regards the northern route, negotiations will continue with the goal of reaching agreement as soon as possible.

Implementation will take place expeditiously thereafter.
4. The Israeli and Palestinian sides acknowledge the great importance of the Port of Gaza for the development of the Palestinian economy, and the expansion of Palestinian trade. They commit themselves to proceeding without delay to conclude an agreement to allow the construction and operation of the port in accordance with the prior agreements. The Israeli-Palestinian Committee will reactivate its work immediately with a goal of concluding the protocol within 60 days, which will allow commencement of the construction of the port.

5. The two sides recognize that unresolved legal issues adversely affect the relationship between the two peoples. They therefore will accelerate efforts through the Legal Committee to address outstanding legal issues and to implement solutions to these issues in the shortest possible period. The Palestinian side will provide to the Israeli side copies of all of its laws in effect.

6. The Israeli and Palestinian sides also will launch a strategic economic dialogue to enhance their economic relationship.

They will establish within the framework of the JEC an Ad Hoc Committee for this purpose. The committee will review the following four issues: (1) Israeli purchase taxes; (2) cooperation in combating vehicle theft; (3) dealing with unpaid Palestinian debts; and (4) the impact of Israeli standards as barriers to trade and the expansion of the A1 and A2 lists. The committee will submit an interim report within three weeks of the entry into force of this Memorandum, and within six weeks will submit its conclusions and recommendations to be implemented.

7. The two sides agree on the importance of continued international donor assistance to facilitate implementation by both sides of agreements reached. They also recognize the need for enhanced donor support for economic development in the West Bank and Gaza. They agree to jointly approach the donor community to organize a Ministerial Conference before the end of 1998 to seek pledges for enhanced levels of assistance.

IV. Permanent Status Negotiations

The two sides will immediately resume permanent status negotiations on an accelerated basis and will make a determined effort to achieve the mutual goal of reaching an agreement by May 4, 1999. The negotiations will be continuous and without interruption. The United States has expressed its willingness to facilitate these negotiations.

V. Unilateral Actions

Recognizing the necessity to create a positive environment for the negotiations, neither side shall initiate or take any step that will change the status of the West Bank and the Gaza Strip in accordance with the Interim Agreement.

ATTACHMENT: Time Line

This Memorandum will enter into force ten days from the date of signature.

Done at Washington, DC this 23rd day of October 1998.

For the Government of the State of Israel
For the PLO
Witnessed by: The United States of America

TIME LINE

Note: Parenthetical references below are to paragraphs in "The Wye River Memorandum" to which this time line is an integral attachment. Topics not included in the time line follow the schedule provided for in the text of the memorandum.

1. Upon Entry into Force of the Memorandum:

--Third further redeployment committee starts (I (B))
--Palestinian security work plan shared with the U.S. (II (A)(1)(b))
--Full bilateral security cooperation (II (B)(1))
--Trilateral security cooperation committee starts (II (B)(3))
--Interim committees resume and continue; Ad Hoc Economic Committee starts (III)
--Accelerated permanent status negotiations start (IV)

2. Entry into Force--Week 2:

--Security work plan implementation begins (II (A)(1)(b)); (II (A)(1)(c)) committee starts
--Illegal weapons framework in place (II (A)(2)(a)); Palestinian implementation report (II (A)(2)(b);
--Anti-incitement committee starts (II (A)(3)(b)); decree issued (II (A)(3)(a))
--PLO Executive Committee reaffirms Charter letter (II (C)(2))
--Stage 1 of F.R.D. implementation: 2% C to B, 7.1% B to A. Israeli officials acquaint their Palestinian counterparts as required with areas; F.R.D. carried out; report on F.R.D. implementation (I(A))

3. Week 2-6:

--Palestinian Central Council reaffirms Charter letter (weeks two to four) (II (C)(2))
--PNC and other PLO organizations reaffirm Charter letter (weeks four to six) (II (C)(2))
--Establishment of weapons collection program (II (A)(2)(b)) and collection stage (II (A)(2)(c)); committee starts and reports an activities
--Anti-incitement committee report (II (A)(3)(b))
--Ad Hoc Economic Committee: interim report at week three; final report at week six (III)
--Policemen list (II (C)(1)(a)), Monitoring and Steering Committee review starts (II (C)(1)(c))
--Stage 2 of F.R.D. implementation: 5% C to B. Israeli officials acquaint their Palestinian counterparts as required with areas; F.R.D. carried out; report on F.R.D. implementation (I (A))

4. Week 6-12:

--Weapons collection stage (II (A)(2)(b)); (II (A)(2)(c)) committee report on its activities.
--Anti-Incitement committees report (II (A)(3)(b))
--Monitoring and Steering Committee briefs U.S. on policemen list (II (C)(1)(c))
--Stage 3 of F.R.D. implementation: 5% C to B, 1% C to A, 7.1% B to A -- Israeli officials acquaint Palestinian counterparts as required with areas; F.R.D. carried out; report on F.R.D. implementation (I (A))

5. After Week 12:

Activities described in the Memorandum continue as appropriate and if necessary, including;
--Trilateral security cooperation committee (II (B)(3))
--(II (A)(1)(c)) committee
--(II (A)(1)(e)) committee
--Anti-incitement committee (II (A)(3)(b))
--Third Phase F.R.D. Committee (I (B))
--Interim Committees (III)
--Accelerated permanent status negotiations (IV)

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