THE WHITE HOUSE

                     Office of the Press Secretary
________________________________________________________________________
For Immediate Release                                    October 28, 1998



                        THE WYE RIVER MEMORANDUM


    The following are steps to facilitate implementation of the Interim
Agreement on the West Bank and Gaza Strip of September 28, 1995 (the
"Interim Agreement") and other related agreements including the Note for
the Record of January 17, 1997 (hereinafter referred to as "the prior
agreements") so that the Israeli and Palestinian sides can more
effectively carry out their reciprocal responsibilities, including those
relating to further redeployments and security respectively.  These
steps are to be carried out in a parallel phased approach in accordance
with this Memorandum and the attached time line.  They are subject to
the relevant terms and conditions of the prior agreements and do not
supersede their other requirements.


I.    FURTHER REDEPLOYMENTS

A.    Phase One and Two Further Redeployments

1.    Pursuant to the Interim Agreement and subsequent agreements, the
Israeli side's implementation of the first and second F.R.D. will
consist of the transfer to the Palestinian side of 13% from Area C as
follows:

1% to Area (A) 12% to Area (B)

The Palestinian side has informed that it will allocate an area/areas
amounting to 3% from the above Area (B) to be designated as Green Areas
and/or Nature Reserves.  The Palestinian side has further informed that
they will act according to the established scientific standards, and
that therefore there will be no changes in the status of these areas,
without prejudice to the rights of the existing inhabitants in these
areas including Bedouins; while these standards do not allow new
construction in these areas, existing roads and buildings may be
maintained.

The Israeli side will retain in these Green Areas/Nature Reserves the
overriding security responsibility for the purpose of protecting
Israelis and confronting the threat of terrorism.  Activities and
movements of the Palestinian Police forces may be carried out after
coordination and confirmation; the Israeli side will respond to such
requests expeditiously.

2.    As part of the foregoing implementation of the first and second
F.R.D., 14.2% from Area (B) will become Area (A).

B.    Third Phase of Further Redeployments

With regard to the terms of the Interim Agreement and of Secretary
Christopher's letters to the two sides of January 17, 1997 relating to
the further redeployment process, there will be a committee to address
this question.  The United States will be briefed regularly.

II.   SECURITY

In the provisions on security arrangements of the Interim Agreement, the
Palestinian side agreed to take all measures necessary in order to
prevent acts of terrorism, crime and hostilities directed against the
Israeli side, against individuals falling under the Israeli side's
authority and against their property, just as the Israeli side agreed to
take all measures necessary in order to prevent acts of terrorism, crime
and hostilities directed against the Palestinian side, against
individuals falling under the Palestinian side's authority and against
their property.  The two sides also agreed to take legal measures
against offenders within their jurisdiction and to prevent incitement
against each other by any organizations, groups or individuals within
their jurisdiction.

Both sides recognize that it is in their vital interests to combat
terrorism and fight violence in accordance with Annex I of the Interim
Agreement and the Note for the Record.  They also recognize that the
struggle against terror and violence must be comprehensive in that it
deals with terrorists, the terror support structure, and the environment
conducive to the support of terror.  It must be continuous and constant
over a long-term, in that there can be no pauses in the work against
terrorists and their structure.  It must be cooperative in that no
effort can be fully effective without Israeli-Palestinian cooperation
and the continuous exchange of information, concepts, and actions.

Pursuant to the prior agreements, the Palestinian side's implementation
of its responsibilities for security, security cooperation, and other
issues will be as detailed below during the time periods specified in
the attached time line:

A.    Security Actions

1.    Outlawing and Combating Terrorist Organizations

(a)  The Palestinian side will make known its policy of zero tolerance
     for terror and violence against both sides.

(b)  A work plan developed by the Palestinian side will be shared with
     the U.S. and thereafter implementation will begin immediately to
     ensure the systematic and effective combat of terrorist
     organizations and their infrastructure.

(c)  In addition to the bilateral Israeli-Palestinian security
     cooperation, a U.S.-Palestinian committee will meet biweekly to
     review the steps being taken to eliminate terrorists calls and
     the support structure that plans, finances, supplies and abets
     terror.  In these meetings, the Palestinian side will inform the
     U.S. fully of the actions it has taken to outlaw all organizations
     (or wings of organizations, as appropriate) of a military,
     terrorist or violent character and their support structure and to
     prevent them from operating in area under its jurisdiction.

(d)  The Palestinian side will apprehend the specific individuals
     suspected of perpetrating acts of violence and terror for the
     purpose of further investigation, and prosecution and punishment
     of all persons involved in acts of violence and terror.

(e)  A U.S.-Palestinian committee will meet to review and evaluate
     information pertinent to the decisions on prosecution, punishment
     or other legal measures which affect the status of individuals
     suspected of abetting or perpetrating acts of violence and terror.

2.    Prohibiting Illegal Weapons

(a)  The Palestinian side will ensure an effective legal framework is
     in place to criminalize, in conformity with the prior agreements,
     any importation, manufacturing or unlicensed sale, acquisition or
     possession of firearms, ammunition or weapons in areas under
     Palestinian jurisdiction.

(b)  In addition, the Palestinian side will establish and vigorously
     and continuously implement a systematic program for the collection
     and appropriate handling of all such illegal items it accordance
     with the prior agreements.  The U.S. has agreed to assist in
     carrying out this program.

(c)  A U.S.-Palestinian-Israeli committee will be established to assist
     and enhance cooperation in preventing the smuggling or other
     unauthorized introduction of weapons or explosive materials into
     areas under Palestinian jurisdiction.

3.    Prevention Incitement

(a)  Drawing on relevant international practice and pursuant to Article
     XXII (1) of the Interim Agreement and the Note for the Record, the
     Palestinian side will issue a decree prohibiting all forms of
     incitement to violence or terror, and establishing mechanisms for
     acting systematically against all expressions or threats of
     violence or terror.  This decree will be comparable to the
     existing Israeli legislation which deals with the same subject.

(b)  A U.S.-Palestinian-Israeli committee will meet on a regular basis
     to monitor cases of possible incitement to violence or terror and
     to make recommendations and reports on how to prevent such
     incitement.  The Israeli, Palestinian and U.S. sides will each
     appoint a media, specialist, a law enforcement representative, an
     educational specialist and a current or former elected official to
     the committee.

B.    Security Cooperation

The two sides agree that their security cooperation will be based on a
spirit of partnership and will include, among other things, the
following steps:

1.    Bilateral Cooperation

There will be full bilateral security cooperation between the two sides
which will be continuous, intensive and comprehensive.

2.    Forensic Cooperation

There will be an exchange of forensic expertise, training, and other
assistance.

3.    Trilateral Committee

In addition to the bilateral Israeli-Palestinian security cooperation, a
high-ranking U.S.-Palestinian-Israeli committee will meet as required
and not less than biweekly to assess current threats, deal with any
impediments to effective security cooperation and coordination and
address the steps being taken to combat terror and terrorist
organizations.  The committee will also serve as a forum to address the
issue of external support for terror. In these meetings, the Palestinian
side will fully inform the members of the committee of the results of
its investigations concerning terrorist suspects already in custody and
the participants will exchange additional relevant information. The
committee will report regularly to the leaders of the two sides on the
status of cooperation, the results of the meetings and its
recommendations.

C.    Other Issues

1.    Palestinian Police Force

(a)  The Palestinian side will provide a list of its policemen to the
     Israeli side in conformity with the prior agreements. 

(b)  Should the Palestinian side request technical assistance, the U.S.
     has indicated its willingness to help meet those needs in
     cooperation with other donors.

(c)  The Monitoring and Steering Committee will, as part of its
     functions, monitor the implementation of this provision and brief
     the U.S.

2.    PLO Charter

The Executive Committee of the Palestine Liberation Organization and the
Palestinian Central Council will reaffirm the letter of 22 January 1998
from PLO Chairman Yasir Arafat to President Clinton concerning the
nullification of the Palestinian National Charter provisions that are
inconsistent with the letters exchanged between the PLO and the
Government of Israel on 9-10 September 1993.  PLO Chairman Arafat, the
Speaker of the Palestine National Council, and the Speaker of the
Palestinian Council will invite the members of the PNC, as well as the
members of the Central Council, the Council, and the Palestinian Heads
of Ministries to a meeting to be addressed by President Clinton to
reaffirm their support for the peace process and the aforementioned
decisions of the Executive Committee and the Central Council.

3.    Legal Assistance in Criminal Matters

Among other forms of legal assistance in criminal matters, the requests
for arrest and transfer of suspects and defendants pursuant to Article
II (7) of Annex IV of the Interim Agreement will be submitted (or
resubmitted) through the mechanism of the Joint Israeli-Palestinian
Legal Committee and will be responded to in conformity with Article II
(7) (f) of Annex IV of the Interim Agreement within the 12 week period.
Requests submitted after the eighth week will be responded to in
conformity with Article II (7) (f) within four weeks of their
submission. The United States has been requested by the sides to report
on a regular basis on the stops being taken to respond to the above
requests.

4.    Human Rights and the Rule of Law

Pursuant to Article XI (1) of Annex I of the Interim Agreement, and
without derogating from the above, the Palestinian Police will exercise
powers and responsibilities to implement this Memorandum with due regard
to internationally accepted norms of human rights and the rule of law,
and will be guided by the need to protect the public, respect human
dignity, and avoid harassment.

III.  INTERIM COMMITTEES AND ECONOMIC ISSUES

1.    The Israeli and Palestinian sides reaffirm their commitment to
enhancing their relationship and agree on the need actively to promote
economic development in the West Bank and Gaza.  In this regard, the
parties agree to continue or to reactivate all standing committees
established by the Interim Agreement, including the Monitoring and
Steering Committee, the Joint Economic Committee (JEC), the Civil
Affairs Committee (CAC), the Legal Committee, and the Standing
Cooperation Committee.

2.    The Israeli and Palestinian sides have agreed on arrangements
which will permit the timely opening of the Gaza Industrial Estate. 
They also have concluded a "Protocol Regarding the Establishment and
Operation of the International Airport in the Gaza Strip During the
Interim Period."

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.




/S/ B. Netanyahu For the Government of the State of Israel




/S/ Y. Arafat For the PLO




Witnessed by:  /S/ William J. Clinton 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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