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U.S. Department of State Office of the Spokesman Press Statement

Press Statement by James B. Foley, Deputy Spokesman
February 19, 1999

Meeting of the U.S.-Palestinian Bilateral Committee

The U.S.-Palestinian Bilateral Committee held its second meeting on February 16 at the Department of State in Washington. The committee was established in March 1997 to enhance the working partnership between the American and Palestinian sides by providing a structured forum for dialogue on bilateral issues of mutual concern, including economic assistance, promotion of trade and investment, and other forms of cooperation. The first meeting took place at the Department of State on December 1, 1998 under the auspices of Secretary of State Albright and Chairman Arafat.

Yesterday’s meeting was hosted by Assistant Secretary of State for Near Eastern Affairs Martin Indyk. The Palestinian delegation was headed by Abu Mazen, Secretary General of the PLO Executive Committee. The Committee decided that it would meet at least twice a year, and will be chaired at least once annually by Secretary Albright and Chairman Arafat. Subcommittees on trade/investment, assistance, legal issues, and exchange programs were established. An advisory committee from the American and Palestinian private sectors will be created to provide input on ways to promote investment, trade, and economic growth in the Palestinian economy. A Secretariat of the Committee has been established to coordinate on-going activities and follow up on Committee proceedings.

The meeting focused on economic and assistance issues. The two sides discussed the need to promote economic growth in the West Bank and Gaza and ways to expand American investment and trade. The Committee noted the importance of the November 1996 duty free proclamation for the West Bank and Gaza. The United States Agency for International Development provided an overview of planned assistance to address pressing social and economic development issues over the next three years. A significant portion of American assistance will be used for development projects, including those related to the Wye River Memorandum, as well as to enable private sector growth, improve social services, and encourage democratic governance.

There was also discussion of cultural and educational exchanges. Anticipated U.S. assistance includes increased funding for people-to-people activities. The two sides noted the importance of scholarships for Palestinian graduate level studies in technical fields in the United States. Both sides also shared ideas on encouraging increased contact and exchanges between the U.S. Congress and the Palestinian Council.

Both sides also exchanged views on matters of regional concern, including the Iraqi crisis and the need to promote growth in the Jordanian economy. Participants also noted the importance of expanded regional commercial activity through freedom of trade and access as a means to strengthen the economic underpinnings of the Middle East peace process.

The next meeting of the U.S.-Palestinian Bilateral Committee will be in the West Bank or Gaza in mid-1999.

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