DRAFT PALESTINE-ISRAEL-MFO PORT MEFTA
TREATY
The Multinational Force and Observers (hereinafter "the
MFO"), the future Government of the State of Palestine, herein represented by the Government
of the Palestinian National Authority (hereinafter "the PNA") and the Palestine Liberation
Organization (hereinafter “the PLO”), (the PNA, the PLO and the future Government of the
State of Palestine hereinafter jointly "Palestine"), and the Government of the State of
Israel (hereinafter "Israel");
Palestine and Israel (hereinafter also "the Governments") noting that Israel has withdrawn
beyond the 1967 border of the Gaza Strip;
Acknowledging the Governments’ need to maintain a hudna between them for an agreed period of
time (hereinafter “said truce”);
Seeking normal business relations in, to and from the Gaza Strip;
Recognizing that an international Middle East Free Trade Area (hereinafter "Mefta") in the
Gaza Strip under the administration and policing of the MFO can help generate jobs and
economic security for the Palestinians;
Have agreed as follows:
ARTICLE I - Establishment of Port Mefta
1. The Governments agree that when this Treaty enters into force, Palestine shall lease to
the MFO a 7-square-kilometers area along the coast between Deir El Balah and the former Gush
Katif, as designated in the attached Boundaries Annex, to establish and administer a Middle
East Free Trade Area port ("Port Mefta") for a period of 35 years. Port Mefta shall be a
free port/special economic zone open to companies of all nationalities to do low-labor-cost
free trade business pursuant to the attached Port Mefta Annex.
2. In return for the lease, the MFO shall pay to Palestine 20 percent of all rentals paid by
acceding parties to this Treaty for land sites for such parties and their companies they
designate to construct buildings in Port Mefta. The lease shall automatically be renewed for
successive 15-year periods unless Palestine, for any reason, terminates the lease on five
years' written notice. Upon termination of the lease the entire area of Port Mefta, with its
harbor and other infrastructure shall come under the sovereignty of Palestine. The MFO
agrees that Palestine and its companies shall have normal access to the harbor in Port Mefta
at operating cost and Palestine agrees to limit a Gaza City harbor to fishing vessels.
3. The Governments and the MFO agree that the MFO shall ensure equal treatment in Port Mefta
to Palestine and Israel. In particular:
a. the MFO international police force shall include equal numbers of former Palestinian and
Israeli police in addition to MFO nations' police and police of the Arab Republic of Egypt
(hereinafter "Egypt") and the Hashemite Kingdom of Jordan (hereinafter "Jordan");
b. the MFO shall provide to Palestine and Israel equal areas of land sites free of rent for
them and their companies they designate to construct buildings;
c. the MFO shall provide to a designee of Palestine two rent-free land sites to exclusively
build and operate a temporary and a permanent gambling casino, and Israel shall permit all
Israelis to visit the casino along with all other tourists.
4. The Governments and the MFO agree that all nonexecutive labor, as defined in the Port
Mefta Annex, employed by businesses in Port Mefta shall be Palestinians approved by
Palestine, and Palestine agrees that the wage for each such laborer shall not be greater
than the average wage for corresponding Palestinian labor in the Gaza Strip.
5. The Governments agree that in Port Mefta the MFO shall have exclusive jurisdiction over
all non-Palestinians and non-Israelis.
6. The Governments agree that in Port Mefta the MFO shall have exclusive jurisdiction over
the crimes of terrorism and smuggling (as defined by the MFO), crimes and civil disputes
involving citizens other than Palestinian and Israeli citizens, and crimes and civil
disputes between an Israeli citizen and a Palestinian citizen. The MFO agrees that, except
for the crimes of terrorism and smuggling, Israel shall have exclusive jurisdiction over
crimes and civil disputes solely involving Israeli citizens and Palestine shall have
exclusive jurisdiction over crimes and civil disputes solely involving Palestinian citizens.
7. The Governments and the MFO agree that Port Mefta shall provide a terminus for a sunken
highway and accompanying desalinated water pipe and electricity/communication lines and
towers (hereinafter jointly "highway facilities") connected to a terminus near Hebron, and
Palestine (including the PLO and PNA individually) and Israel shall each grant a 35-year
easement to the MFO for the highway facilities, and also a 35-year easement to the MFO for
an extension of the highway facilities to the border of Jordan. The easements shall
automatically be renewed for successive 15-year periods unless Israel or Palestine, for any
reason, terminates either or both easements on five years' written notice. The Governments
shall delegate sole patrol of the highway surface to the MFO.
8. The time line in the attached Time Line Annex sets forth an agreed schedule for
implementation of the Articles.
ARTICLE II - Establishment of Normal Business Relations in Port Mefta
1. The Governments shall maintain normal business relations in Port Mefta as set out in the
attached Normal Business Relations Annex.
2. Port Mefta shall be independent and free of Palestine's and Israel's economic, political
and military control.
3. The Governments shall cooperate in promoting calm, stability and development in Port
Mefta and shall settle all disputes between them concerning Port Mefta by peaceful means.
4. The Governments recognize a mutuality of interest in good business in Port Mefta and for
this purpose shall:
a. cooperate to provide normal postal, telephone (including mobile phones), telex, data,
facsimile, wireless, satellite and cable communications and television relay services by
cable, radio and satellite in Port Mefta on a nondiscriminatory basis in accordance with
relevant international conventions and regulations;
b. cooperate to generate tourism in Port Mefta and their region, especially in Egypt and
Jordan.
ARTICLE III - Security Arrangements With Respect to Port Mefta
Recognizing the importance of security for both Governments as an important element of
peaceful business coexistence and stability with respect to Port Mefta, the Governments
shall employ security arrangements to build mutual confidence in the implementation of this
Treaty and to provide for the security needs there of both Governments in accordance with
the attached Security Annex, and in particular --
1. The Governments each undertake to refrain from organizing, instigating, inciting,
assisting or participating in any acts or threats of violence against the other, its
citizens or their property in Port Mefta, and each shall take effective measures to ensure
that no such acts occur from, or are supported by individuals on, its territory. In this
regard, without prejudice to the basic rights of freedom of expression and association, each
shall take necessary and effective measures to prevent the entry, presence and operation in
its territory of any group or organization, and their infrastructure, which threatens the
security of the other by the use of, or incitement to the use of, violent means in Port
Mefta.
2. Both Governments recognize that international terrorism in all its forms threatens the
security of Port Mefta and therefore share a common interest in the enhancement of joint and
international cooperative efforts to deal with this problem.
3. The Governments shall establish a direct liaison and coordination mechanism between them
as described in the Security Annex to facilitate implementation of the security provisions
in this Treaty. Its responsibilities shall include: direct and real-time communication on
security issues, addressing any problems arising during the implementation process, helping
to prevent errors or misinterpretations, and maintaining direct and continuous contacts with
the MFO.
ARTICLE IV - Water
1. The Governments shall establish a Joint Water Committee and cooperate on water-related
matters in Port Mefta in cooperation with the MFO pursuant to the attached Water Annex.
2. The Governments agree to jointly support the construction by the MFO in Port Mefta of a
power/desalination plant as specified in the Water and Port Mefta Annexes.
3. The Governments agree to jointly support the development of natural gas deposits in the
territorial waters of Palestine; and the power/desalination plant shall be entitled to
priority in the use of such gas and at a price equal to production cost excluding donated
capital expenditures.
ARTICLE V - Rights and Obligations
1. This Treaty 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 Treaty
without regard to action or inaction of any other party and independently of any instrument
external to this Treaty.
3. The Governments undertake not to enter into any obligation in conflict with this Treaty.
4. Subject to Article 103 of the United Nations Charter, in the event of a conflict between
the obligations of the Governments under this Treaty and any of their other obligations, the
obligations under this Treaty shall be binding and implemented.
5. The MFO undertakes to urge Egypt and Israel to amend the 3 August 1981 (MFO) Protocol to
the 26 March 1979 Egypt-Israel Treaty of Peace to authorize the MFO to expand its mission to
establish and administer international free trade and tourist areas in the Middle East and
perform its obligations under this Treaty.
ARTICLE VI - Legislation
The Governments undertake to enact any legislation necessary in order to implement this
Treaty, and to repeal any legislation that is inconsistent with this Treaty.
ARTICLE VII - Settlement of Disputes
Disputes between the Governments arising out of the interpretation or application of this
Treaty shall be settled by
negotiation with the help of the good offices of the MFO, Egypt and Jordan.
ARTICLE VIII - Final Clauses
1. This Treaty shall be signed by the Director General of the MFO, the PNA, the PLO and
Israel, and ratified by both the PNA and Israel in conformity with their respective
procedures. It shall enter into force for a period of 35 years on the exchange of
instruments of ratification and shall supercede all previous bilateral agreements between
the Governments to the extent applicable to Port Mefta.
2. Any nation that desires that it and its companies do business in Port Mefta may accede to
this Treaty by depositing
instruments of accession with the MFO, the PNA and Israel.
3. This Treaty 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.
