AGREEMENT ON ENCOURAGEMENT OF INVESTMENT
BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF THE STATE OF ISRAEL

REPRESENTATIVES OF THE UNITED STATES OF AMERICA AND OF
THE STATE OF ISRAEL

DESIRING to promote Palestinian economic development in
support of the Declaration of Principles on Interim
Self-Government Arrangements between Israel and the PLO,
signed in Washington, D.C. on September 13, 1993 (the
Declaration of Principles); and

RECOGNIZING that this objective can be promoted through
investment support provided by the Overseas Private
Investment Corporation ("OPIC"), a development institution
and an agency of the United States of America, in the form
of investment insurance and reinsurance, debt and equity
investments and investment guaranties;

HAVE AGREED as follows:
ARTICLE 1

As used in this Agreement, the following terms have the
meanings herein provided. The term “Area" means the areas
for which arrangements are being established for Palestinian
interim self-government, as set forth in Articles I and IV
of the Declaration of Principles. The term "Investment
Support" refers to any debt or equity investment, any
investment guaranty and any investment insurance or
reinsurance which is provided by the Issuer in connection
with a project in the Area. The term "Issuer" refers to
OPIC and any successor agency of the United States of
America, and any agent of either. The term "Taxes" means
all present and future taxes, levies, imposts, stamps,
duties and charges, and all liabilities with respect
thereto, imposed by the Government of the State of Israel
(including the Israeli military government in the Area or
its Civil Administration).


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ARTICLE 5

The Government of the State of Israel shall agree in
response to a request by the PLO to include in the Agreement
establishing the Palestinian Council pursuant to the
Declaration of Principles a provision continuing the
provisions of this Agreement in force and effect throughout
the interim period provided for in the Declaration of
Principles.

ARTICLE 6

(a) This Agreement shall enter into force when signed
by both Parties.

(b) This Agreement shall be carried out consistent with
the framework of the Declaration of Principles and its
current and future implementing agreements to the full
extent Israel exercises authority relevant to this Agreement
in the Area.

{c) This Agreement shall continue in force until the
end of the interim period provided for in the Declaration of
Principles, unless terminated by the Issuer by providing
written notice to the Government of Israel. After
expiration or termination of this Agreement, its provisions
shall, with respect to Investment Support provided while the
Agreement was in force, remain in force so long as such
Investment Support remains outstanding, but in no case
longer than twenty years after expiration of the Agreement.

IN WITNESS WHEREOF the undersigned, being duly
authorized, have signed this Agreement.

DONE at Washington, on the 12_ th day of September,
1994, in duplicate, in the English language.

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF
THE UNITED STATES OF AMERICA: THE STATE OF ISRAEL:

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ARTICLE 5

{a) The PLO shall ensure that the Palestinian Authority
acts in compliance with the terms of this Agreement.

(b) The PLO shall seek to include in the Agreement
establishing the Palestinian Council pursuant to the
Declaration of Principles a provision continuing the provisions
of this agreement in force and effect throughout the interim
period provided for in the Declaration of Principles.

ARTICLE 6

(a) This Agreement shall enter into force when signed by
both Parties.

(b) This Agreement shall be carried out consistent with the
framework of the Declaration of Principles and its current and
future implementing agreements to the full extent the
Palestinian Authority and its successors exercise authority
relevant to this Agreement in the Area.

(c) This Agreement shall continue in force until the end of
the interim period provided for in the Declaration of
Principles unless terminated by the Issuer by providing written
notice to the Palestinian Authority or its successor. After
expiration or termination of this Agreement its provisions
shall, with respect to Investment Support provided while the
Agreement was in force, remain in force so long as such
Investment Support remains outstanding, but in no case longer
than twenty years after expiration of the Agreement.

IN WITNESS WHEREOF the undersigned, being duly authorized,
have signed this Agreement.

DONE at Washington on the 12 th day of September,

1994, and at Gaza on the ; 1] th day of august
in wD in the English anguage.

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FOR THE GOVERNMENT OF ‘OR THE PLO
THE UNITED STATES OF AMERICA: FOR THE BENEFIT OF THE
PALESTINIAN AUTHORITY PURSUANT TO
THE GAZA-JERICHO AGREEMENT:



ARTICLE 2

(a) The Issuer shall not be subject to regulation under
any laws applicable to insurance or financial organizations

doing business in the Area.

(b) All operations and activities undertaken by the
Issuer in connection with any Investment Support for
projects in the Area, and all payments, whether of interest,
principal, fees, dividends, premiums, or the proceeds from
the liquidation of assets or from any investment insurance
or reinsurance or of any other nature, that are made,
received or guaranteed by the Issuer in connection with any
Investment Support, shall be exempt from Taxes. The Issuer
shall not be subject to any Taxes in connection with any
transfer, succession or other acquisition which occurs
pursuant to Paragraph (c) of this Article or Article 3(a) of
this Agreement. Any project in connection with which
Investment Support has been provided shall be accorded
treatment no less favorable with respect to Taxes than that
accorded to projects benefiting from-the investment support
programs of any other national or multilateral development
institution which operates in the Area.

(c) If the Issuer makes a payment to any person or
entity, or exercises its rights as a creditor or subrogee,
in connection with any Investment Support, the transfer to,
or acquisition by, the Issuer of any cash, accounts,
credits, instruments or other assets in connection with such
payment or exercise, as well as the succession of the Issuer
to any right, title, claim, privilege or cause of action
existing, or which may arise, in connection therewith, shall
be recognized as having legal and binding effect.

(d) With respect to any interests transferred to the
Issuer or any interests to which the Issuer succeeds as
contemplated in this Article, the Issuer shall assert no
greater rights than those of the person or entity from whom
such interests were received, provided that nothing in this
Agreement shall limit the right of the Government of the
United States of America to assert a claim under
international law in its sovereign capacity, as distinct
from any rights it may have as the Issuer pursuant to this
Agreement .


AGREEMENT ON ENCOURAGEMENT OF INVESTMENT
BETWEEN THE UNITED STATES OF AMERICA
AND THE PALESTINE LIBERATION ORGANIZATION
FOR THE BENEFIT OF THE PALESTINIAN AUTHORITY
PURSUANT TO THE AGREEMENT ON THE
GAZA STRIP AND THE JERICHO AREA

REPRESENTATIVES OF THE UNITED STATES OF AMERICA AND THE
PALESTINE LIBERATION ORGANIZATION ("PLO"), THE LATTER ACTING
FOR THE BENEFIT OF THE PALESTINIAN AUTHORITY PURSUANT TO THE
AGREEMENT ON THE GAZA STRIP AND THE JERICHO AREA SIGNED IN
CAIRO ON MAY 4, 1994 (THE GAZA-JERICHO AGREEMENT),

DESIRING to promote economic development; and

RECOGNIZING that this objective can be promoted through
investment support provided by the Overseas Private Investment
Corporation ("OPIC"), a development institution and an agency
of the United States of America, in the form of investment
insurance and reinsurance, debt and equity investments and
investment guaranties;

HAVE AGREED as follows:
ARTICLE 1

As used in this agreement, the following terms have the
meanings herein provided. The term "Area" means the areas for
which arrangements are being established for Palestinian
interim self-government, as set forth in Articles I and IV of
the Declaration of Principles on Interim Self-Government
Arrangements, signed in Washington, D.C. on September 13, 1993
(the Declaration of Principles). The term "Investment Support"
refers to any debt or equity investment, any investment
guaranty and any investment insurance or reinsurance which is
provided by the issuer in connection with a project in the
Area. The term "Issuer" refers to OPIC and any successor
agency of the United States of America, and any agent of
either. The term "Taxes" means all present and future taxes,
levies, imposts, stamps, duties and charges, and all
liabilities with respect thereto, imposed by the Palestinian
Authority or its successors.


ARTICLE 3

(a) Amounts in the currency or currencies in lawful use
in the Area, including cash, accounts, credits, instruments
or otherwise, acquired by the Issuer upon making a payment,
or upon the exercise of its rights as a creditor, in
connection with any Investment Support provided by the
Issuer for a project in the Area, shall be accorded
treatment in the Area no less favorable as to use and
conversion than the treatment to which such funds would have
been entitled in the hands of the person or entity from
which the Issuer acquired such amounts.

(b) Such currency and credits may be transferred by the
Issuer to any person or entity and upon such transfer shall
be freely available for use by such person or entity in the
Area in accordance with applicable laws.

ARTICLE 4

(a) The Issuer and the Government of Israel shall
consult promptly as to any question that may arise relating
to the interpretation or application of this Agreement or
out of any project or activity for which Investment Support
has been provided, whether before or after any transfer or
assignment of rights or assets pursuant to Article 2 or
Article 3. Either the Issuer or the Government of Israel
may initiate such consultations. During these consultations
the Issuer and the Government of Israel shall endeavor to
resolve any such questions amicably.

(b) Should the Issuer and the Government of Israel be
unable to resolve any question through the consultations
described in paragraph (a), they shall consider, as an
alternative to invocation of other remedies, but without
derogating from any available remedy, the use of other
mechanisms, including third-party fact finding, mediation,
conciliation or arbitration, utilizing such terms of
reference and procedures as may be agreed upon by the Issuer
and the Government of Israel as appropriate to the question
involved.


ARTICLE 2

(a) The Issuer shall not be subject to regulation under
any laws applicable to insurance or financial organizations
doing business in the Area.

(b) All operations and activities undertaken by the Issuer
in connection with any Investment Support for projects in the
Area, and all payments, whether of interest, principal, fees,
dividends, premiums, or the proceeds from the liquidation of
assets or from any investment insurance or reinsurance or of
any other nature, that are made, received or guaranteed by the
Issuer in connection with any Investment Support, shall be
exempt from Taxes. The Issuer shall not be subject to any
Taxes in connection with any transfer, succession or other
acquisition which occurs pursuant to Paragraph (c) of this
Article or Article 3(a) of this Agreement. Any project in
connection with which Investment Support has been provided
shall be accorded treatment no less favorable with respect to
Taxes than that accorded to projects benefiting from the
investment support programs of any other foreign national or
multilateral development institution which operates in the Area.

(c) If the Issuer makes a payment to any person or entity,
or exercises its rights as a creditor or subrogee in connection
with any Investment Support, the transfer to, or acquisition
by, the Issuer of any cash, accounts, credits, instruments or
other assets in connection with such payment or exercise as
well as the succession of the Issuer to any right, title,
claim, privilege or cause of action existing, or which may
arise, in connection therewith, shall be recognized as having
legal and binding effect.

(a) With respect to any interests transferred to the
Issuer or any interests to which the Issuer succeeds as
contemplated in this Article, the Issuer shall assert no
greater rights than those of the person or entity from whom
such interests were received, provided that nothing in this
Agreement shall limit the right of the Government of the United
States of America to assert a claim under international law in
its sovereign capacity, as distinct from any rights it may have
as the Issuer pursuant to this Agreement.

pH.


ARTICLE 3

(a) Amounts in the currency or currencies in lawful use in
the Area, including cash, accounts, credits, instruments or
otherwise, acquired by the issuer upon making a payment, or
upon the exercise of its rights as a creditor, in connection
with any Investment Support provided by the Issuer for a
project in the Area, shall be accorded treatment in the area no
less favorable as to use and conversion than the treatment to
which such funds would have been entitled in the hands of the
person or entity from which the Issuer acquired such amounts.

(b) Such currency and credits may be transferred by the
issuer to any person or entity and upon such transfer shall be
freely available for use by such person or entity in the Area
in accordance with applicable laws.

ARTICLE 4

(a) The Issuer and the Palestinian Authority or its
successor shall consult promptly as to any question that may
arise relating to the interpretation or application of this
Agreement or out of any project or activity for which
Investment Support has been provided, whether before or after
any transfer or assignment of rights or assets pursuant to
Article 2 or Article 3. Either the Issuer or the Palestinian
Authority or its successor may initiate such consultations.
During these consultations the Issuer and the Palestinian
Authority or its successor shall endeavor to resolve any such
questions amicably.

(b) Should the Issuer and the Palestinian Authority or its
successor be unable to resolve any question through the
consultations described in paragraph (A), they shall consider,
as an alternative to invocation of other remedies, but without
derogating from any available remedy, the use of other
mechanisms, including third-party fact finding, mediation,
conciliation or arbitration, utilizing such terms of reference
and procedures as may be agreed upon by the Issuer and the
Palestinian Authority or its successor as appropriate to the
question involved.