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Thursday, 2 November, 2000, 17:17 GMT
Text of the Palestinian 'understanding'
Yasser Arafat and Shimon Peres
An agreement was reached between Arafat and Peres
The following is the text of a statement of "understanding" issued by the Palestinian National Authority (PNA) after a meeting on Wednesday evening between Palestinian leader Yasser Arafat and Israel's former prime minister Shimon Peres.

"An understanding was reached last night [Wednesday] between the Palestinian National Authority (PNA) and the Israeli Government stipulating that the two sides shall do their best to implement the Sharm el-Sheikh understandings as stated in US President Bill Clinton's statement and Egyptian President Hosni Mubarak's speech.

"The Palestinian leadership, which has always shown care in implementing mutual obligations, is closely monitoring the extent to which the Israeli side will implement its obligations.

'Peaceful intifada'

"This includes the withdrawal of the occupation forces and their military units from all areas, cities and residential neighbourhoods that were occupied after 28 September, ending hostilities against our unarmed people and removing all forms of the siege.

The PNA insists on Jerusalem as the capital of a Palestinian state
"Moreover, the Palestinian leadership feels that the Israeli Government must curb and control the hordes of settlers who are constantly committing crimes against our people, because it is an essential factor in ending the aggression, violence and terrorism against our people.

"The Palestinian leadership, which has always been keen on the peaceful and popular nature of the intifada, and which has exercised self-restraint over the past stage despite the continued attacks and violations, calls on our struggling masses and the national forces to observe the unity of their stands, continue their popular forms of expression and remain committed to peaceful means in all moves and forms of national action in affirmation of our people's determination to regain their legitimate national rights, secure the implementation of international legitimacy resolutions and reach a just and comprehensive peace.

"Establishing the peace of the brave, which offers security, peace and justice to all peoples in the region, requires an affirmation of the practical commitment to international legitimacy resolutions.

"This constitutes the peace process's point of reference and stipulates the implementation of UN Security Council Resolutions 242, 338 and 194, as well as a complete [Israeli] withdrawal to the 4 June 1967 lines, guaranteeing the Palestinian peoples' right of return and the establishment of their independent state with holy Jerusalem as its capital."

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