I
104TH CONGRESS
1ST SESSION
H. R. 1930
To govern relations between the United States and the Palestine Liberation
Organization (PLO), to enforce PLO compliance with standards of inter-
national conduct, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 27, 1995
Mr. ENGEL (for himself, Mr. SAXTON, Mr. SCHUMER, and Mr. DELAY) intro-
duced the following bill; which was referred to the Committee on Inter-
national Relations, and in addition to the Committee on Banking and Fi-
nancial Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To govern relations between the United States and the Pal-
estine Liberation Organization (PLO), to enforce PLO
compliance with standards of international conduct, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Middle East Peace
Compliance Act and PLO Accountability of 1995’’.
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SEC. 2. DEFINITIONS.
For the purposes of this Act—
(a) the term ‘‘Palestine Liberation Organiza-
tion’’ or ‘‘PLO’’ shall be defined as a membership
organization encompassing all constituent groups
and individuals that publicly demonstrate their alle-
giance to the PLO or receive funds from the PLO;
(b) for the purpose of this section, the term
‘‘foreign assistance’’ shall be the same as that used
under section 634(b) of the Foreign Assistance Act
of 1961 (Public Law 87–195); and
(c) the term ‘‘Palestinian Authority’’ shall be
defined as the administrative entity established in
the self-rule areas of Gaza and the West Bank in ac-
cordance with the Declaration of Principles signed in
Washington, D.C., September 13, 1993, between Is-
rael and the PLO (PLO).
SEC. 3. MIDDLE EAST PEACE COMPLIANCE POLICY.
It is the policy and interest of the United States—
(a) to contribute to the advancement of peace
and security in the Middle East by supporting ef-
forts by Israel and the PLO to reach a nonviolent
resolution of their conflict under the terms of the
Declaration of Principles on Interim Self-Govern-
ment Arrangement signed in Washington, D.C., Sep-
tember 13, 1993;
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(b) to ensure that the PLO fully and meaning-
fully complies with the terms and conditions of all
agreements made between it and Israel;
(c) to demonstrate firm, consistent, and unam-
biguous opposition to terrorism by insisting that the
PLO and Palestinian Authority take significant, ma-
terial, and timely steps to preempt terrorist attacks;
(d) to ensure that the Palestinian Authority
fully accounts for basic human needs and infrastruc-
ture development funds expended by the United
States in Gaza and Jericho in accordance with
standard commercial principles and practices;
(e) to assist Israel and the PLO in cooperating
fully with United States law enforcement agencies to
apprehend, prosecute, and convict all individuals in-
volved in the criminal injury or death of United
States citizens or the willful damaging of United
States property;
(f) to hold the PLO and its administrative au-
thority in Gaza and Jericho accountable for unlawful
acts carried out within its jurisdiction or emanating
from territory under its administrative control;
(g) to ensure that all United States foreign as-
sistance evidence a clear commitment to democracy,
justice, and the rule of law and conform to estab-
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lished standards of financial management and ac-
countability; and
(h) to contribute to the long term security, sta-
bility, and economic health of the State of Israel
through the maintenance of close bilateral ties and,
to the greatest extent possible, to provide such levels
of assistance to Israel as are necessary and suffi-
cient to achieve these objectives.
SEC. 4. MIDDLE EAST PEACE COMPLIANCE FINDINGS AND
DETERMINATIONS.
(a) FINDINGS.—Pursuant to the commitments be-
tween Israel and the PLO described in section 6 of this
Act, the Congress makes the following findings:
(1) After decades of conflict, Israel and the
PLO have entered a new era which presents an his-
toric opportunity for peaceful coexistence and a sta-
ble democratic future for themselves and the region.
(2) The basis for this new relationship between
Israel and the PLO is the set of agreements to
which both parties are signatories and which ema-
nates from the Declaration of Principles on Interim
Self-Government Arrangements, signed in Washing-
ton, D.C., on September 13, 1993.
(3) The United States agrees to serve as a
partner in the effort to bring about long lasting rec-
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onciliation and understanding between Israel and the
PLO.
(4) The United States recognizes that all of the
agreements referred to in section 6 of the Act are
legally binding on Israel and the PLO, that they
were entered in freely and in good faith and that Is-
rael and the PLO are committed to their complete
fulfillment.
(5) The United States is relying upon Israel
and the PLO to honor their commitments to elected
representatives and officials of the United States
Government prior to and following the signing of the
Declaration of Principles, including the promise of
the PLO to halt terrorism emanating from areas
under its control.
(6) The United States is committed to provid-
ing funding for infrastructure development and basic
human needs in Gaza and Jericho, but not through
the PLO and only where the PLO and the Palestin-
ian Authority have demonstrated that they have
taken substantial, timely, and meaningful steps to-
wards full compliance under their respective agree-
ments.
(7) The United States is resolute in its deter-
mination to ensure that in providing assistance to
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Palestinians living under the administrative control
of the Palestinian Authority or elsewhere, the bene-
ficiaries of such assistance shall be held to the same
standard of financial accountability and manage-
ment control as any other recipient of United States
foreign assistance.
(8) Since the signing of the Declaration of
Principles, the United States has had sufficient time
to evaluate the sincerity, commitment, and effective-
ness with which Israel and the PLO have complied
with both the spirit and the letter of the joint agree-
ments to which they are signatories.
(b) DETERMINATIONS.—The Congress determines
the following:
(1) While there has been recent progress in
PLO efforts to comply with the commitments it
made, listed in section 6 of this Act, the PLO has
demonstrated significant disregard for both the spir-
it and the letter of the understandings contained in
those agreements.
(2) Information provided by the President on
the compliance of the PLO with its agreements has
often been ambiguous and has tended to focus only
on the positive aspects of PLO compliance.
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(3) In the following areas, the PLO specifically
has failed to take substantial, timely, and meaning-
ful steps to fulfill its commitments listed in section
6 of this Act.
(A) AMENDING THE PLO COVENANT—De-
spite the commitment made by the PLO in the
letter of September 9, 1993 between the PLO
leader and the Prime Mister of Israel, the PLO
has yet to repeal the provisions of its Charter
which declare Israel to be illegitimate and call
for its elimination through armed struggle.
(B) PREVENTING AND RESPONDING TO VI-
OLENCE
AND
TERRORISM.—Substantial addi-
tional steps are necessary for the PLO to com-
ply fully with its commitment under Article
XVIII of the Gaza-Jericho Agreement to pre-
vent acts of terrorism, crime, and hostilities di-
rected against Israel and Israelis. Congress be-
lieves that these steps should include banning
terrorist organizations, such as Hamas and Is-
lamic Jihad.
(C) INCITING
VIOLENCE.—Despite para-
graph 1, Article XII of the Gaza-Jericho Agree-
ment, some prominent PLO officials, including
Chairman Yasir Arafat, have advocated holy
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war (jihad) against Israel, glorify terrorists,
and have issued propaganda delegitimizing Is-
raeli sovereignty, even within its pre-1967 bor-
ders.
(D) CONFISCATING UNAUTHORIZED WEAP-
ONS.—In violation of the terms of Section 8,
Article VIII, Annex I of the Gaza-Jericho
Agreement, the Palestinian Authority has yet to
take meaningful steps to enforce upon civilians
or paramilitary groups a prohibition on posses-
sion or carrying of weapons without a license.
(E) EXCLUDING TERRORISTS FROM SECU-
RITY SERVICES.—Despite the spirit of Section
4(b), Article III, Annex I of the Gaza-Jericho
Agreement, the PLO continues to employ police
who have committed serious crimes or acts of
terrorism.
(F) REFUSING TO TRANSFER SUSPECTED
TERRORISTS
TO
ISRAEL.—Despite Section 7,
Article II, Annex III of the Gaza-Jericho Agree-
ment, the Palestinian Authority has refused to
transfer certain individuals suspected in terror-
ist acts against Israeli citizens to Israeli au-
thorities.
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(G) LOCATING INSTITUTIONS OF THE PAL-
ESTINIAN AUTHORITY IN JERUSALEM.—Under
Article V of the Gaza-Jericho Agreement, the
geographical jurisdiction of the Palestinian Au-
thority is limited to the areas of the Gaza Strip,
Jericho, and other areas agreed to by the Par-
ties. By opening offices and institutions in Je-
rusalem, the Palestinian Authority has violated
the spirit of this provision.
(H) EXCEEDING THE AUTHORIZED NUM-
BER
OF
PALESTINIAN
POLICE.—Despite sub-
section 3(c), Article III, Annex I of the Gaza-
Jericho Agreement which permits up to 9,000
Palestinian Police, the Palestinian Authority
has substantially exceeded this limit by main-
taining a police force of 15,000 to 20,000
members.
SEC. 5. MIDDLE EAST PEACE COMPLIANCE GENERAL RE-
STRICTIONS ON ASSISTANCE.
The following restrictions shall apply with regard to
all assistance provided by the United States under this
Act:
(a) No funds shall be made available under this
or any other Act to the PLO.
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(b) All funds obligated under this Act shall be
provided only by agencies or entities of the United
States Government, private voluntary organizations
designated by the Secretary of State, or multilateral
institutions which have transparent funding mecha-
nisms and are open to independent audits.
(c) No funds shall be obligated under this Act
for any project or activity in Jerusalem.
(d) No funds obligated under this Act shall be
made available, directly or indirectly, to Palestinian
Authority until the President meets the require-
ments set forth in section 7 of this Act.
(e) Funds obligated under this Act may only be
made available for humanitarian assistance, eco-
nomic development and infrastructure projects, de-
mocracy building, and combatting terrorism, or ac-
tivities which benefit Palestinians in areas under the
jurisdiction of the Palestinian Authority.
(f) No funds obligated under this or any other
Act shall be used for the purchase, lease, or acquisi-
tion by any means of lethal equipment for security
services related to the Palestinian Authority.
(g) No funds shall be made available under this
Act should the PLO or Palestinian Authority con-
clude a formal or informal arrangement with
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Hamas, Islamic Jihad, or any other group practicing
or supporting terrorism unless the arrangement cur-
tails terrorism.
(h) As set forth in section 585 of the Foreign
Operations, Export Financing, and Related Pro-
grams 1995 Appropriations and 1994 Supplemental
Appropriations Act (Public Law 103–306):
(1) None of the funds made available
under this or any other Act shall be obligated
or expended to create in any part of Jerusalem
a new office of any department or agency of the
United States Government for the purpose of
conducting official United States Government
business with the Palestinian Authority over
Gaza and Jericho or any successor Palestinian
governing entity provided for in the Israel-PLO
Declaration of Principles: Provided, That this
restriction shall not apply for the acquisition of
additional space for the existing Consulate Gen-
eral in Jerusalem.
(2) Meetings between officers and employ-
ees of the United States and officials of the
Palestinian Authority, or any successor Pal-
estinian governing entity provided for in the Is-
rael-PLO Declaration of Principles, for the pur-
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pose of conducting official United States Gov-
ernment business with such authority should
continue to take place in locations other than
Jerusalem. As has been true in the past, offi-
cers and employees of the United States Gov-
ernment may continue to meet in Jerusalem on
other subjects with Palestinians (including
those who now occupy positions in the Palestin-
ian Authority), have social contacts, and have
incidental discussions.
(i) No funds made available under this or any
other Act shall be provided to any individual who
has been convicted in a court of law of directly par-
ticipating in the planning or execution of a terrorist
activity which resulted in the death, injury, or kid-
naping of an American citizen.
SEC. 6. MIDDLE EAST PEACE COMMITMENTS DESCRIBED.
The commitments referred to under this Act and rec-
ognized by the United States are the legally binding com-
mitments made by the PLO and Israel in the following
declarations:
(a) The PLO letter of September 9, 1993, to
the Prime Minister of Israel.
(b) The PLO letter of September 9, 1993, to
the Foreign Ministry of Norway.
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(c) The Declaration of Principles on Interim
Self-Government Arrangements signed in Washing-
ton, D.C., on September 13, 1993.
(d) The Agreement between Israel and the PLO
signed in Cairo on May 4, 1994, also known as the
Gaza-Jericho Agreement.
(e) The Joint Communique between Israel and
the PLO issued at Blair House, in Washington,
D.C., February 12, 1995.
SEC. 7. MIDDLE EAST PEACE COMPLIANCE REQUIREMENTS
FOR THE TRANSFER OF FUNDS.
IN GENERAL.—None of the funds made available
under this Act shall be obligated until the following re-
quirements set forth in this section are fully met:
(a) CERTIFICATION OF COMPLIANCE.—Prior to
the exercise of the authority provided by subsection
(i) of this section, the President shall certify to the
Congress that the PLO and the Palestinian Author-
ity are complying by the commitments listed in sec-
tion 6 of this Act. The President may not exercise
that authority until 30 days after a written policy
justification is submitted to the relevant congres-
sional committees. For the written policy justifica-
tion applying to the certification prior to blocks A
and C of United States assistance, as established in
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subsection (j) of this section, such written policy jus-
tification shall include, but not be limited to, the fol-
lowing—
(1) a comprehensive evaluation of the com-
pliance record of the PLO and the Palestinian
Authority according to each specific commit-
ment set forth in the agreements and other in-
struments listed in section 6 of this Act;
(2) objective and subjective measures to
assess PLO compliance; and
(3) a measurement of PLO compliance
against each previous quarterly assessment.
For the written policy justification applying to the
certification prior to blocks B and D of United
States assistance, as established in subsection (j) of
this section, such written policy justification shall in-
clude, but not be limited to, a measurement of PLO
compliance against each previous quarterly assess-
ment.
(b) FINANCIAL ACCOUNTABILITY.—Ninety (90)
days after the passage of this Act and every 180
days thereafter, the President shall submit to the
relevant congressional committees a report which
provides an accounting of all United States assist-
ance which benefits, directly or indirectly, the
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projects, programs, or activities of the Palestinian
Authority in areas under its jurisdiction including,
but not limited to—
(1) the obligation and disbursal of all
funds, by project, activity, and date, as well as
by prime contractor;
(2) the organization(s) or individual(s) re-
sponsible for the receipt and obligation of Unit-
ed States assistance;
(3) the amount of both private and inter-
national donor funds that benefit the PLO or
the Palestinian Authority and to which the
United States is a contributor; and
(4) the ultimate beneficiaries of the assist-
ance.
(c) REPORT
ON
THE
POSSIBLE
MISUSE
OF
FUNDS.—Ninety (90) days following the passage of
this Act, the President shall provide to the relevant
congressional committees a comprehensive account-
ing to the extent possible of all credits, guarantees,
insurance, in-kind assistance, and other resource
transfers to the Palestinian Authority provided by
the United States, other nations, or multilateral in-
stitutions or donor groups which may have been mis-
used, diverted, or illegally converted for purposes