President George W. Bush has given Israel and the Palestinian Authority until the end of his term to reach an agreement on the creation of a viable democratic Palestinian state that will live peace with Israel. The assumption is that the sides will negotiate in secret and will reach a declaration of principles which will then be brought to the electorate in Israel and Palestine - either through full elections or through referenda.

The agreement will set down principles for permanent status and for the end of the conflict and a finality of all claims. The implementation of the declaration of principles will be based first on the full implementation of phase 1 of the road map (Palestinians dismantling the infrastructure of terrorism and Israel freezing all settlements and redeploying to the position held in September 2000), and then on the negotiations of a detailed agreement. Gaza is another issue that will have to be dealt with before an agreement could be implemented there.

It would safe to state that the parameters of the Declaration of Principles are more or less known. In the end it will look something like the following:

Declaration of Principles on Permanent Status Peace - Preamble The Government of the State of Israel and the P.L.O., the sole legitimate representative of the Palestinian people, reaffirm that it is time to put an end to decades of confrontation and conflict, recognize their mutual legitimate and political rights, and strive to live in peaceful coexistence and mutual dignity and security and achieve a just, lasting and comprehensive peace settlement and historic reconciliation based on the "two-states for two peoples" solution. The two sides fully recognize that each state has the right to define its own identity which will be respected by both sides.

This Declaration of Principles relates to the establishment of peace between the State of Israel and the future State of Palestine, in all of its territories, including the Gaza Strip. In recognition of the current political realities in the Gaza Strip, the implementation of this Declaration and the future treaty of peace will be undertaken in Gaza only once the Palestinian Authority, or future Government of the State of Palestine has full control over the Gaza Strip or at such a time that the Governing authority in Gaza accepts the international conditions of recognition of Israel, adherence to all agreements (including this and future agreements) and a full renunciation of violence and terrorism.

ARTICLE I - AIM OF THE AGREEMENT OF PRINCIPLES ON PERMANENT STATUS. The aim of this Declaration of Principles is to provide a framework for negotiations on the permanent status agreement of peace and end of conflict between the State of Israel and the State of Palestine that will be established based on these principles. This Declaration of Principles will relate to all of the permanent status issues detailed in the DOP of September 1993 including: Jerusalem, refugees, settlements, security arrangements, borders, relations and cooperation with other neighbors, and other issues of common interest.

ARTICLE II - PALESTINIAN STATEHOOD. The State of Palestine will be established on the territories agreed to by the parties based on the principle of 100% of the size of the land area of the West Bank, Gaza and East Jerusalem with agreed upon border modifications, agreed-upon territorial exchange in accordance with the vital needs of both sides, including security, territorial contiguity, and demographic considerations.

The Palestinian State will have a connection between its two geographic areas, the West Bank and the Gaza Strip. The Palestinian State will have full control over its external borders in accordance with security arrangements that will be agreed upon.

ARTICLE III - JERUSALEM. The State of Israel and the State of Palestine will both establish their capitals in Jerusalem. The delineation of borders and the future status of the Holy Places, and the mechanisms for governing Jerusalem will be the focus of the detailed permanent status negotiations on Jerusalem. The principle guiding the negotiations on the delineation of borders in Jerusalem will be: "What is Arab to the Palestinians, what is Jewish to Israel." The two sides are committed to guaranteeing that freedom of religion and full access to all holy sites will be guaranteed to all.

ARTICLE IV - REFUGEES. In line with the Arab League Peace Initiative, both parties accept the principle of a just solution to the Palestinian Refugee problem to be agreed upon in consideration of UN General Assembly Resolution 194.

Both sides recognize that the resolution to the refugee problem must also be in accordance with the principle of two-states for two peoples taking into account the demographic realities and needs of both States. On that basis, Israel acknowledges that it shares responsibility with other parties for the emergence of refugees' plight and acknowledges their suffering since 1948 with sorrow.

All Palestinian refugees will be eligible to receive immediate citizenship in the State of Palestine based on a plan of immigration and settlement to be determined by the State of Palestine.

The international community, Israel, and the Palestinian State will establish and contribute to an International Fund for Palestinian Refugees that will compensate all Palestinian refugees in recognition of years of their suffering.

The international fund will also offer to compensate Palestinian refugees willing to remain in their present country of residence, or who wish to immigrate to third countries, in accordance with agreements of those third countries.

The International Fund for Palestinian Refugees will engage in a robust international effort to construct new housing for Palestinian refugees in the State of Palestine including the establishment of new cities in the West Bank.

All Palestinian refugees will be able to present property loss claims to an international commission that will work alongside of the International Fund for Palestinian Refugees. Compensation for lost property will be made available by the fund in the form of alternative new housing in the State of Palestine and/or cash payments.