Pursuant to the terms of the Declaration of Principles on Interim Self-Government Arrangements in 1993 (commonly referred to as the Oslo I agreement), the Agreement on the Gaza Strip and Jericho Area signed in Cairo in 1994, and the Interim Agreement on the West Bank and the Gaza Strip (commonly referred to as the Oslo II agreement), signed in Washington on September 28, 1995, authority over specified spheres and in specified geographical areas has been transferred to Palestinian Authority including the Elected Legislative Council. The permanent status negotiations, which opened on May 4th, 1996, are to deal with issues including the status of Jerusalem, Palestinian refugees, Israeli settlements in the West Bank and Gaza, security arrangements, borders, water and international relations.
The Israeli-Palestinian Interim Agreement on the West Bank and Gaza Strip provided for the election for a Palestinian legislative council (which was held on January 20th 1996) and the transfer to this council authority over much of Palestinian internal affairs. In the spheres and geographic areas where the Legislative Council has authority, the Israeli Civil Administration has been dissolved. The Legislative Council does not however, have authority over Palestinian foreign affairs although the P.L.O. does have authority to conduct negotiations and sign international economic and regional development agreements.
The Israeli Defence Forces have redeployed from the Gaza Strip and most large population areas in the West Bank, with the exception of Hebron and according to the Oslo II agreement shall redeploy from further areas in the West Bank in six month intervals so that at the end of the redeployment, the Palestinian Legislative Council will have authority over all areas in Gaza and the West Bank except Israeli settlements and military locations.
Until the redeployment is complete, the West Bank has been divided into three types of areas, "A", "B", and "C". In "A" areas, which contains the 6 of the largest cities in the West Bank, Palestinian Legislative Council has full responsibility for internal security and public order, as well as full civil responsibilities. In "B" areas, which contains most of the towns and villages in the West Bank, the Palestinian Legislative Council has full civil authority and responsibility for public order, although Israel has overall security authority which is stated to take precedence over Palestinian responsibility for public order. In "C" areas, which contains mainly unpopulated areas, Israel has full responsibility for security and public order.
Civil powers and responsibilities have been transferred from the Israeli Civilian Authority to the Palestinian Legislative Council in Areas A and B, and in areas C for those powers and responsibilities not relating to territory.
The Israeli Defence Force and Israeli citizens are still able to travel throughout the West Bank and Gaza, and may not in any circumstance be arrested or detained by the Palestinian police.
For criminal offences, the Palestinian Authority has jurisdiction over all offences committed inside Gaza, except those offences committed inside Jewish settlements, Israeli military installations, and offences committed by or against Israelis. In the West Bank, the Palestinian Authority has jurisdiction over all offences committed by Palestinians and/or non-Israelis in the areas of the West Bank under Palestinian control (the "Territories"). This includes full powers of investigation, arrest, detention, prosecution, and punishment. Israel retains jurisdiction over offences committed inside the West Bank by Israelis, regardless of location, as well as over offences against Israelis, and offences affecting security and terrorism in areas of limited Palestinian control (Area B). Also, there is a protocol for the cooperation between Israeli and Palestinian authorities regarding criminal matters, including investigations, restraining orders, summons and questioning of witnesses, transfer of suspects, and execution of court orders, including search warrants.
For civil matters, authority inside Gaza and the West Bank has been fully transferred to the Palestinian courts and judicial authorities, except for cases against Israelis (except for ongoing Israeli business inside Gaza, real property inside Gaza or where there is consent to Palestinian jurisdiction), and against the state of Israel or its agents. Further, there is a protocol for cooperation between Israeli and Palestinian authorities regarding the service of documents, taking of evidence, and enforcement of orders and judgments.
Israel undertook to increase the amount of water allocated to the Palestinians by 28 million cu.m. and the Oslo II agreement provides for the establishment of a joint water committee to manage water resources. The final resolution of the water issue is to be discussed during the final status talks.
The Oslo II agreement also provides for the release of Palestinian prisoners in Israeli custody in three stages. The first prisoners were released upon the signing of the agreement, the second stage was to occur upon the Palestinian Council elections although this has not been fully complied with by the Israeli government, and the third phase is to be decided by a joint Israeli-Palestinian committee.
A protocol for economic relations between Israel and the Palestinian
territories was also included in the Oslo II agreement. It transferred
limited authority over economic issues such as import taxes and
policy, monetary and financial issues, taxation, labour, agriculture,
industry, tourism and insurance from Israel to the Palestinian
Council.