The current situation in the Palestinian territories in the light of the Oslo Accord

Minister of Local Government and Labour Gunnar Berge

The current situation in the Palestinian territories in the light of the Oslo Accord

Speaking notes in connection with a Palestinian cultural festival in Stavanger on 3 November 1995

Your Excellencies, Ladies and Gentlemen ,

It is a great pleasure for me to welcome you here in my home-town and to be with you at the opening of this seminar: "After the Oslo agreement". A special welcome to the representatives of the Palestinian National Authority and to others who play and have played an active part in the peace-process in the Middle East, a process that has been followed by great interest by the Norwegian people.

The peace negotiations between the PLO and Israel which culminated in the Oslo Declaration of Principles in autumn 1993 have had far-reaching consequences, first and foremost for the Palestinians and Israelis, but also for the general political climate throughout the Middle East. After decades of strife and confrontation between the Israeli authorities and the PLO, representatives of both parties resolved to mutually recognize one another and to sign an agreement aimed at a peaceful resolution of the conflict. This accord, for which the courageous Israeli and PLO leaders were awarded the Nobel Peace Prize last year, constitutes an important victory for moderate forces in the region. The recent Oslo II agreement between the Palestinians and the Israelis, concluded just over a month ago, testifies to the fact that both sides are very much in earnest and that the peace train is still on track.

In May 1994 a number of areas in the Gaza Strip and Jericho were transferred to Palestinian self-rule. The Palestinian authorities took over responsibility for education, cultural affairs, health, tax collection, social affairs, tourism, agriculture, insurance, employment, municipal affairs, the postal system, petroleum and gas, statistics, and trade and industry in the Palestinian territories. Work began on the development of a separate administration and infrastructure, and the results of this are clearly visible in Gaza and Jericho today, even though some major problems still remain to be solved. Negotiations on the second stage of the implementation of the Oslo Declaration made slower progress, but despite difficult discussions, delays and acts of violence by both sides, the parties reached agreement in September on expanded self-government on the West Bank and on Palestinian elections.

The Oslo II Agreement, which was signed on 28 September 1995 in Washington, entails significant changes for the Palestinian territories. The elections scheduled for January 1996 will play a particularly important role in consolidating and reinforcing the legitimacy of the

Palestinian administration, as well as in winning broad-based support for the peace process in the Palestinian opinion. Agreement was reached to elect a Palestinian council consisting of 82 representatives and to hold a separate election for presidency of the Palestinian territories. The EU will coordinate international aid for the implementation of the elections, including international observers. At the request of the Palestinian authorities, Norway has decided to send some 50 observers to the elections. The Norwegian authorities greatly appreciate having been approached by the Palestinian authorities in this connection, and look forward to the day when the Palestinians, for the first time in modern history, will have their own popularly elected government.

In addition to the areas placed under Palestinian self-government mentioned earlier, responsibility for a further 30-odd civilian areas on the West Bank was transferred to the Palestianian authorities under the latest agreement. It is evident that the ongoing process of change in the Palestinian territories poses great challenges. Naturally, the first year of Palestinian self-rule was difficult in many ways and at times the economic situation was critical. However, the Palestinian authorities have demonstrated that they can make the system work. The latest quarterly reports from the Palestinian authorities and the International Monetary Fund regarding the economic situation in the Palestinian territories were positive. Revenues were higher than anticipated, largely due to more efficient tax collection and substantial reimbursement of VAT and other charges from Israel. The Palestinian authorities have also succeeded in imposing a ban on new jobs in the public sector, thereby maintaining expenditure at the anticipated level. The 1995 budget deficit, which was estimated at USD 228 million in April this year, has now been adjusted to less than half that amount. This will be covered by contributions from donor countries. The favourable reports on the economic situation in the Palestinian territories are providing an important psychological boost to both the Palestinians and the rest of the world.

It is of course the parties concerned who are primarily responsible for following up the peace accord. However, the Norwegian Government considers it natural to support the efforts of the Palestinian self-government to lay the groundwork for a new society. Economic development is essential to the process of building democracy and enhancing stability. Due to the special role played by our country in the peace process, Norway was elected chairman of the Ad Hoc Liaison Committee (AHLC) at the international donor conference that was held in Washington on 1 October 1993. As chairman of the donor group, Norway wishes to emphasize the responsibility of the international community for promoting the peace process and increased self-rule in the Palestinian territories.

Until now, considerable attention has been focused on short-term aid to the Palestinians, particularly support to cover the operating costs of the Palestinian self-government administration. The Johan Jørgen Holst Fund, a special fund placed under the World Bank, was established in January 1994 as an important instrument for channelling short-term aid and budget support to the Palestinian authorities. As of September 1995, approximately USD 153 million has been distributed through this fund. As the situation for the Palestinian authorities stabilizes, greater priority will be given to longer term projects. A new donor conference on further aid to the Palestinians will be held in December.

Despite the positive trends reflected by the Palestinian economy, there are still a number of major problems facing the Palestinian authorities. There are many elements of uncertainty, especially in the current process of transferring further authority to the Palestinians on the West Bank and in the upcoming Palestinian elections. The "Final Status" negotiations scheduled to commence next spring will focus on the ultimate status of the West Bank and the Gaza strip and the highly complex issues of the status of Jerusalem, the future of the Israeli settlements and matters regarding Palestinian refugees in other countries. In the light of these challenges, it is essential that the international community continue to support the peace process. As chairman of the donor group, Norway will make every effort to promote such support.

The peace process and the accords between the Israelis and the Palestinians have been criticized in several quarters, as could be expected. The issues involved here are extremely difficult and sensitive. However, the fact that the criticism is equally strong from both sides shows that Israelis and Palestinians alike are benefiting from and must make sacrifices for the peace process. While the path to a final resolution of the conflict is still fraught with difficulty, there can be no doubt that the peace process and the achievements gained so far are invaluable steps in the right direction.

I am confident that this seminar will be of use and inspiration to all present here to-day, and to those who in future will be confronted with the great challenges of creating peaceful co-existence between people. Thank you for your attention.