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Jerusalem (JTA) — Jordan
and the Palestine Liberation
Organization have agreed on
an economic cooperation
pact designed to ensure a
Jordanian role in the West
Bank economy under Pales-
tinian autonomy.
The accord, which was
concluded this week, calls
for the Jordanian Central
Bank to monitor and
regulate the Palestinian
monetary policy that will
evolve during interim self-
rule, which will begin in the
West Bank town of Jericho.
The pact was reportedly
motivated by Jordanian con-
cerns that Israel would try to
exploit the economic benefits
of the accord with the PLO
at Jordan's expense.
In a related development,
a mission from the World
Bank is due to arrive in
Israel next week to begin
planning an economic in-
frastructure in the Gaza
Strip and Jericho, the first
areas to be given autonomy
by the Israelis.
About 25 economic experts
are expected to lay the
groundwork for the in-
vestment of the $2.4 billion
the World Bank has
estimated is needed over the
next five years in the areas.
The economic specialists
are also planning to provide
emergency and technical as-
sistance, including helping
to set up a tax-collection
system, and begin what the
Bank of Israel called "pre-
feasibility" studies of
various economic projects
that have been proposed.
The international
economists will have to
prepare the economic in-
frastructure to create a
climate that is favorable for
the private sector, "on whose
shoulders the Palestinian
economy will ride," said
Yoav Lehman, spokesman
for the Bank of Israel.
"You can't make a factory
if there is no road to the fac-
tory, or if there is no tele-
communications or electric-
ity," said Mr. Lehman. "The
public investment will be
used to create this basic in-
frastructure."
The World Bank's plan
calls for the Palestinians to
receive $400 million in
international aid in 1994,
$125 million of which is
slated for relief assistance,
double the current amount,
and $275 million for public
assistance programs.

Over the course of five
years, the relief assistance
will "drop to average $50
million a year, while public
investment will increase to
an average $475 million a
year.
The World Bank mission
comes in the wake of an
international conference
held Oct. 1 in Washington,
at which donor countries
pledged more than $2 billion
for Palestinian economic de-
velopment over the next five
years.
Israel has pledged $25
million to the effort, an ac-
tion defended this week by
Bank of Israel Governor
Jacob Frenkel at a news con-
ference upon his return from
Washington.
The money is not charity
but a self-serving in-
vestment in an enduring
peace, said Mr. Frenkel, who
cautioned that there are no
guarantees the donor coun-
tries will honor their
pledges.
Nevertheless, Mr. Frenkel
was unreservedly upbeat

The economic
specialists are also
planning to provide
emergency and
technical
assistance.

about the reaction Israel
received at the international
meetings he attended in
Washington.
"I personally don't re-
member such a period of
great optimism about
Israel," he said, noting the
enthusiasm was a combined
product of the peace agree-
ment and expectations for
regional economic prosper-
ity.
Meanwhile, PLO
economists have prepared
their own 1,600-page econ-
omic development plan for
Gaza and Jericho, which will
form the basis of the
technical negotiations with
the Israelis scheduled to
begin later this month on
the transfer of authority to
the Palestinians. ❑