DRAFT ISRAEL-LEBANON-MFO RIDER TO MEFTA TREATY OF BUSINESS PEACE
(SOUTH LEBANON MEFTA RIDER)

PREAMBLE

The Government of the Republic of Lebanon (hereinafter "Lebanon"), the Government of the State of Israel (hereinafter "Israel") and the Government of the Syrian Arab Republic (hereinafter "Syria") (jointly hereinafter "the Governments"), and the Multinational Force and Observers (hereinafter "the MFO"):

Aiming at the achievement of a just, lasting and comprehensive peace in the Middle East based on Security Council resolutions 242 and 338 and within the framework of the peace process initiated at Madrid on 31 October 1991, and building on the multilateral Israel-Palestine Gaza-MFO Treaty of Business Peace (hereinafter "Gaza Mefta Treaty"), which provides for jurisdiction over and administration by the MFO in the Gaza Strip of a Middle East Free Trade Area (hereinafter "Gaza Mefta");

Lebanon and Israel reaffirming their faith in the purposes and principles of the Charter of the United Nations and recognizing their right to live in business peace with each other by establishing normal business relations in a South Lebanon Middle East Free Trade Area (hereinafter "South Lebanon Mefta") based on the Gaza Mefta Treaty;

Resolved to establish business peace between them in accordance with this Rider to the Gaza Mefta Treaty, including its Gaza Mefta Treaty Annex, whose provisions are hereby incorporated by reference to the extent not inconsistent with this Rider;

Have agreed as follows:

ARTICLE I - Establishment of Business Peace

1. The state of war between Lebanon and Israel is hereby terminated by Lebanon and Israel, and business peace is established between them as set out in Article III below.

2. Israel shall assign by quitclaim deed to Lebanon full sovereignty over the area of South Lebanon Mefta as defined by the boundaries provided by Article II, and Lebanon shall immediately lease that area to the MFO for administration and policing of a South Lebanon Mefta, patterned on Gaza Mefta, for a period of 35 years. In return for the lease, the MFO shall pay to Lebanon 20 percent of all rentals paid by parties to this Rider for land sites to construct buildings in South Lebanon Mefta. The lease shall automatically be renewed for successive 15-year periods unless Lebanon, for any reason, terminates the lease on five years' written notice. Upon termination of the lease the entire area of South
Lebanon Mefta shall revert to the full sovereignty of Lebanon.

3. Lebanon and Israel shall each exercise its full sovereignty on its side of South Lebanon Mefta.

4. The permanent secure and recognized international boundary between Lebanon and Israel is the permanent international boundary which will be agreed to by Lebanon and Israel prior to the establishment of South Lebanon Mefta, pursuant to Article II(3) below.

5. To enhance the security of the Governments, agreed security measures will be implemented in accordance with Article IV below.

6. Syria and Israel shall have equal rights in South Lebanon Mefta pursuant to Article VI(6) below.

7. The time line in the attached Time Line Annex sets forth an agreed schedule for synchronized implementation of this and the other Articles of this Rider.

ARTICLE II - South Lebanon Mefta Boundaries

1. The boundaries of South Lebanon Mefta are as shown on the mapping materials and coordinates specified in the attached Boundaries Annex.

2. The Governments shall respect the inviolability of these boundaries and of each other's territory, territorial waters and airspace.

3. A Joint Boundaries Commission shall be established by Lebanon, Israel and the MFO. Lebanon and Israel shall delineate the permanent international boundary between them (to the extent such boundary differs from the withdrawal line certified by the United Nations Security Council in June 2000), which shall be the southern boundary of South Lebanon Mefta. The remaining boundaries of South Lebanon Mefta shall be delineated by Lebanon and the MFO prior to the establishment of South Lebanon Mefta. The commission's functions and activities are set out in the attached Joint Boundaries Commission Annex.

ARTICLE III - Nonbelligerence and Normal Business Relations

1. Lebanon and Israel shall apply between them the provisions of international law governing nonbelligerence, including the relevant law governing neutral states during a war, and conduct normal business relations in South Lebanon Mefta. In particular:

a. they recognize and shall respect each other's right to live without war, shall refrain from the threat or use of force, directly or indirectly, against each other, and shall settle all disputes between them by peaceful means; and

b. they shall establish and develop business relations in South Lebanon Mefta, and shall work to strengthen business peace, business stability and business development in their region.

2. The Governments and the MFO agree that South Lebanon Mefta shall be governed by the provisions applicable to Gaza Mefta in the Gaza Mefta Treaty and its Gaza Mefta Treaty Annex to the extent not inconsistent with the provisions of this Rider.

3. Lebanon and Israel recognize a mutuality of interest in good business relations in South Lebanon Mefta based on mutual business respect and for this purpose shall:

a. promote beneficial bilateral economic and trade relations in South Lebanon Mefta by enabling the free and unimpeded flow of goods and services there;

b. remove all discriminatory barriers to normal bilateral economic relations in South Lebanon Mefta;

c. promote beneficial multilateral economic and trade relations in South Lebanon Mefta in cooperation with the MFO; and

d. promote tourism in South Lebanon Mefta in order to facilitate and encourage tourism in the region.

4. Lebanon and Israel shall not establish any diplomatic, consular, transportation or communications relations; nor shall Israelis have the right to tour or do business in Lebanon, except as provided herein.

ARTICLE IV - Security
1. The Governments recognize that terrorism threatens the success of South Lebanon Mefta, and therefore each shall act to prevent terrorism there and on both sides of the borders of South Lebanon Mefta.

2. The Governments agree that the MFO shall have exclusive jurisdiction over all non-Lebanese, non-Syrians and non-Israelis in South Lebanon Mefta.

3. The Governments agree that in South Lebanon Mefta the MFO shall have exclusive jurisdiction over the crimes of terrorism and smuggling, crimes and civil disputes involving a non-Lebanese citizen, a non-Israeli citizen or a non-Syrian citizen, and crimes and civil disputes between an Israeli citizen and a Lebanese citizen and between an Israeli citizen and a Syrian citizen. The MFO agrees that Israel shall have exclusive jurisdiction over crimes and civil disputes solely involving Israeli citizens, Lebanon shall have exclusive jurisdiction over crimes and civil disputes solely involving Lebanese citizens and Syria shall have exclusive jurisdiction over crimes and civil disputes solely involving Syrian citizens.

ARTICLE V - Water

1. The Governments agree that the MFO shall ensure the continuation of Israel's current use in quantity and quality of all surface and underground waters that flow to Israel from South Lebanon Mefta.

2. The MFO shall construct a tunnel from the Litani River to the permanent international boundary, as designated in the attached Water Annex, and Israel shall construct a canal from the tunnel along the northern Jordan River to the Sea of Galilee. Between 50 and 300 million cubic meters per year of Litani River water (as determined solely by Lebanon) shall be fed to the tunnel and then supplied by Israel from the Sea of Galilee equitably and at cost to the West Bank Palestinians, Jordan and Israel, as specified in the Water Annex.

ARTICLE VI - Rights and Obligations

1. This Rider does not affect and shall not be interpreted as affecting in any way the rights and obligations of the Governments under the Charter of the United Nations.

2. The Governments undertake to fulfill in good faith their obligations under this Rider independently of any instrument external to this Rider other than the Gaza Mefta Treaty and its Gaza Mefta Treaty Annex.

3. The Governments undertake not to enter into any obligation in conflict with this Rider.

4. Subject to Article 103 of the United Nations Charter, in the event of a conflict between the obligations of the Governments under this Rider and any of their other obligations, the obligations under this Rider shall be binding and implemented.

5. The Governments and the MFO agree that the MFO shall ensure equal treatment in South Lebanon Mefta of Israel and Syria. In particular:

a. the MFO international police force shall include, in addition to MFO nations' police, equal numbers of former Lebanese police, Syrian police and Israeli police.

b. all Lebanese municipalities shall be under the civil administration and local police of Lebanon;

c. the MFO shall provide to Syria rent-free sites for businesses in South Lebanon Mefta equal in number and area to those rent-free sites provided to Israel;

d. all sites for Lebanese businesses shall be rent free;

e. all nonexecutive labor employed by new businesses in South Lebanon Mefta shall be Palestinians presently residing in Lebanon who permanently move to South Lebanon Mefta, or Lebanese, or Syrian citizens presently residing in Lebanon who commute from that portion of Lebanon north of South Lebanon Mefta, in accordance with annual quotas determined solely by Lebanon;

f. all Palestinians presently residing in Lebanon who permanently move to South Lebanon Mefta shall be able to practice any business or profession that they would otherwise be qualified for under Lebanon law applicable to non-Palestinians.

ARTICLE VII - Legislation

The Governments undertake to enact any legislation necessary in order to implement this Rider, and to repeal any legislation that is inconsistent with this Rider.

ARTICLE VIII - Settlement of Disputes

Disputes among the Governments arising out of the interpretation or application of this Rider shall be settled by negotiation, aided by the good offices of the MFO.

ARTICLE IX - Final Clauses

1. This Rider shall be signed by the Director-General of the MFO and the Governments, and then ratified by the Governments in conformity with their respective constitutional procedures. It shall enter into force on the exchange of instruments of ratification by both Lebanon and Israel.

2. Any nation that desires that it and its citizens do business in South Lebanon Mefta may accede to this Rider by depositing instruments of accession with Lebanon, Israel and the MFO.

3. The Annexes attached to this Rider shall constitute integral parts thereof.

4. This Rider shall be communicated to the Secretary General of the United Nations for registration in accordance with the provisions of Article 102 of the Charter of the United Nations.


DONE THIS_______ DAY OF _______ IN ______ IN THE ENGLISH, ARABIC AND HEBREW LANGUAGES, ALL LANGUAGES BEING EQUALLY AUTHENTIC. IN CASE OF ANY DIVERGENCE OF INTERPRETATION, THE ENGLISH TEXT SHALL BE AUTHORITATIVE.