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Fellow ministers and dignitaries: Welcome to the State Department. We convene at a moment of great promise and urgency. The agreement signed this morning must be viewed from the perspective not of a few years, or a decade, or even a generation, but from the perspective of an entire century of conflict and suspicion. Defying the odds, Israelis and Palestinians have again taken a major step forward on the road to peace. It is an opportunity none of us can afford to lose. The effort to create a better future for the Palestinians has been one of the international community's highest priorities for three decades. Today, with this agreement, that goal finally lies within our grasp.
Israelis and Palestinians have done their part. They have completed an extremely complex set of negotiations. They have overcome intense political opposition. They have stood firm in the face of repeated acts of terror and violence. Now we must do our part. Two years ago, at our first donors' meeting, we correctly identified our central task--to help the Palestinians convert the promise of peace into real improvements in their lives. We understood that for peace to endure and win lasting support, it needed to produce tangible benefits for people on the ground.
Since then, important gains have been made. With our support, the Palestinian Authority has come into being. There now exists a working set of institutions for Palestinian self-governance. In Gaza, a construction boom is beginning to transform the landscape. For the first time, Palestinians there can see the signs of a better future beginning to take shape. We must build on that progress and extend it to the West Bank. To succeed, we must re-energize and refocus the assistance effort. For this next phase, we should agree today on a common strategy for building the infrastructure necessary for sustained economic development. The resources of the international community must be targeted on key projects like new roads, wells, and water and sewage systems. Above all, we must help Palestinians create the jobs and economic opportunities that will broaden the constituency for a lasting peace. The United States and the World Bank have identified a list of priority infrastructure projects. On October 18, in Paris, the Bank will chair a Consultative Group meeting at which our experts can discuss these projects in more detail. Then, during the first week of December, in conjunction with Norway and the EU, we will convene a conference on economic assistance to the Palestinians. At that time, we expect countries to announce the specific projects they will undertake, backed by formal pledges of resources.
The United States has already begun redesigning its assistance program to reflect this new focus and urgency. At this conference, we plan to announce the allocation of a substantial part of our five-year, $500 million commitment. Among our highest priorities will be water projects throughout the West Bank, including an immediate upgrade of the water distribution system in Hebron. Our aim is to help ease shortages and raise the quality and quantity of water--an issue of strategic importance to both sides.
The United States will also support plans by Israel and the Palestinian Authority to create industrial zones that will attract new business and private investment, while generating rapid job growth. The United States has been working with Israeli and Palestinian officials to grant reciprocal duty-free status for products manufactured in the West Bank and Gaza. We are now moving to conclude these negotiations.
While our focus will shift to infrastructure, the Palestinian Authority will continue to need help in meeting its own start-up costs, especially as it gains responsibility for the West Bank. The IMF estimates that additional resources will be required in 1996. The United States will announce a substantial pledge to the Holst Fund, and we urge others to do the same. We also hope the need for outside budgetary support will be eliminated as soon as possible, and we appreciate Palestinian efforts to hold down costs and collect taxes.
We must also continue to support key sectors of the Palestinian Authority. The development of a professional police force is essential to maintain order and fight terrorism. Multilateral efforts have made an important contribution toward this goal. The United States has donated hundreds of vehicles to the police. Spain, Russia, and Japan have offered other equipment or housing. Egypt and Jordan have provided training, and Norway, Saudi Arabia, and others have funded police salaries. Public health is also a top priority. Complementing the efforts of other donors to improve Palestinian medical services, the United States has just delivered a large package of equipment and supplies for use in health facilities in the West Bank.
Finally, we must support next spring's Palestinian elections and the development of democratic institutions in the West Bank and Gaza. We applaud the EU's leadership role in organizing election monitors. In all of these efforts to help the Palestinians, the broader our international coalition, the better. All of us face constraints. Therefore, all of us must share the burden, not just in providing resources, but in mobilizing wider donor support. Only a broad-based, coordinated effort can help the Palestinians succeed. Regional initiatives such as the Middle East Development Bank must also play a critical role in building a wider foundation for regional prosperity. At next month's economic summit in Amman, I expect we will agree to create the bank and to pursue other means of spurring private sector investment and job creation.
In closing, let me urge each of your governments to review expeditiously the strategy we outline today, especially the list of infrastructure projects. Now is the time for us to act--with vision and boldness--to consolidate the agreements the Israelis and Palestinians have courageously concluded. I look forward to hearing from you today and to intensifying our cooperation in the crucial weeks ahead. Thank you very much.
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