Agreement between the Hashemite Kingdom of Jordan and the Palestine Liberation Organization
Signed in Amman, January 7, 1994
This agreement takes into account the harmonious relations between the two brotherly nations, the Jordanian and the Palestinian, built on mutuality and reciprocity; emphasizing the importance of cooperation in the various spheres of life and necessitating the provision of an appropriate climate for the development of bilateral relations, especially in the socio-economic realm. It also envisages the building of a common future requiring the highest degrees of cooperation in economic, social, scientific, technological and organizational affairs, on both official and popular levels. Moreover, there will be a dire need for the highest degrees of coordination and cooperation between the two sides on many other levels, in the specific areas of banking, development funds, insurance companies, investment institutions, industrial and agricultural production and construction, as well as tourist services, health and education and the building of an infrastructure, be it roads, electricity, water, energy, communications, etc.
Emphasis has been placed on the readiness of both sides in setting up the basis, and formulating dynamic regulations, for facilitating the freedom of movement in respect of finance, labor, commodities, products and services. Consequently both sides, having explored the economic cooperation project between the Hashemite Kingdom of Jordan and the Palestine Liberation Organization, have consented that this agreement would provide an acceptable framework for cooperation; specifically, both parties agreed on the following:
1. After both sides reviewed the Executive Council's decision in its meeting on 3.1.1994, to reopen the branches of Jordanian banks which were closed in response to Israeli occupation, they have agreed to reopen the branches of Jordanian banks which were not operating since 1967. The Jordanian Central Bank will be accountable on behalf of both parties for organizing the reopening of these branches and supervising their functions according to Jordanian rules, regulations and instructions. This will be accomplished with the cooperation of the designated Palestinian Council, which in turn will be provided with reports about the daily functions of these branches. This agreement will be in effect until the Palestinian financial authorities are established.
2. The establishment of a joint technical team that will convene regularly to bolster cooperation in designing and coordinating financial. monetary and banking policies, in addition to preserving monetary stability during the Palestinian interim period and until the establishment of the Central Palestinian Finance Authority.
3. The Jordanian dinar will be used in Palestine as the official currency in terms of exchange, until the issuing of Palestinian currency. In addition, Arab and international currencies will be used during the interim period according to economic needs.
4. Cooperation will be established in conducting studies concerning the opening of specialized banks in the various areas of economic development, and the technical team will participate in these banks as it deems appropriate.
5. The formation of a joint committee to encourage trade exchange of national agricultural and industrial products between the two countries, and the taking of necessary measures to accomplish the following:
a. Raising the standard and volume of trade between the two countries to the maximum level. This will be accomplished according to subsequent agreements.
b. The formation of a joint free zone in the Jordan Valley for trade purposes, transit, industrial and joint investments.
6. Both sides would facilitate the movement of Palestinian industrial commodities and the transportation, stockpiling and shipping of Palestinian commodities to the Arab countries and the rest of the world, during the interim period.
7. The reconstruction of the Prince Abdullah Bridge along with the development and expanding of other bridges. In practice, the above-mentioned bridge will operate in cooperation between the Jordanian and the Palestinian sides, for facilitating the crossing and reception of people and vehicles. The two sides are studying the possibility of constructing other bridges for the facilitation of transport and crossing operations.
8. The formation of joint tourism projects in tourist areas, cooperation in regulating group tours and encouraging, developing and promoting the tourist industry, in addition to studying the formation of a joint company for tourist transportation.
9. The drafting of an agreement for organizing and exchanging labor and its rights in terms of compensation and social security.
10. The drafting of a special agreement to encourage projected joint investments and the introduction of all necessary facilities in order to create an atmosphere of incentives for the private sector. This would help in the formation of large and medium investment projects and in the encouragement of Jordanian and Palestinian financial capital in the Diaspora to participate in these projects.
11. Encouraging the private sector of both countries, and the sharing in the structuring and executing of housing projects along with the infrastructure (i.e., electricity and energy, water, telecommunications and radio).
12. Fostering agricultural development, through the exchange of agricultural-scientific research and promoting and expanding the formation of joint scientific research centers.
13. Encouraging the private sector in forming joint companies in the free zone area in the Jordan Valley, to store, market and produce agricultural commodities (vegetables, fruits, animal products and fisheries) there.
14. Coordination and close cooperation in building the infrastructure (electricity and energy, water and telecommunications) in order to promote joint interests through acquiring the maximum use of equipment available in both countries.
15. Complete coordination between both countries to accomplish common goals, and the calling for the six committees that are offshoots of the joint higher Jordanian-Palestinian Committee to convene as soon as possible for deliberating and coordinating the issues of Jerusalem, joint economic relations, water, refugees, security, boundaries and legislation, so that the committees will send their periodic reports to the joint higher Jordanian-Palestinian Committee.
16. Continuous coordination and consultation over the peace process so as to achieve the common interests of both parties, the Jordanians and the Palestinians, along with the Arab side; this in order to arrive at a just, durable and comprehensive peace which will guarantee the legitimate national rights of the Palestinian Arab people, along with its right of return to its land and self-determination, and its right to establish its independent state on its national soil with holy Jerusalem as its capital.
Signed for the Hashemite Kingdom of Jordan -
Vice-Premier and Minister of Higher Education
Dr. Sa'id Al-Tal
Signed for the Palestine Liberation Organization -
Mr. Farouq Al Kaddoumi
N.B. This is an unofficial translation from the Arabic.