According to the Sharm el-Sheikh agreement signed by Israel and the Palestinian Authority on September 4, 1999, the two sides will seek to conclude negotiations on the permanent status issues by September 2000. Meeting this target date is a daunting challenge in light of the complexity and sensitivity of the issues to be resolved — the nature and powers of the Palestinian entity, borders, Jerusalem, water, settlements, refugees and security arrangements. The ever-present threat of terrorism by Hamas and Islamic Jihad could also undermine the process. At the same time, Prime Minister Ehud Barak is making every effort to engage Syria in negotiations that can lead to a political settlement with full peaceful relations between the two nations. An agreement with Syria would pave the way for an agreement between Israel and Lebanon as well. On May 24, 2000 the Prime Minister fulfilled his pledge to withdraw all Israeli forces from Southern Lebanon. He has also pledged that final peace agreements with the Palestinians and Syria, in addition to being subject to ratification by the government and Knesset, will be voted on by the Israeli people in one or more referenda.

The reconvening in 1999 and early 2000 of the multilateral working groups after a long hiatus served to enhance the atmosphere surrounding the bilateral negotiations. However, the continuing boycott of Israel by professional and trade associations in Jordan, Egypt and throughout the Arab world has had a corrosive effect on peacemaking in the region. The JCPA supports people-to-people programs, which bring Israelis and Arabs together and contribute to the normalization of their relations. In addition, the Palestinian Authority and Syria should take immediate steps to eliminate all anti-Zionist and anti-Semitic expressions appearing in their official media, curricular materials and classroom instruction. A change in the hearts and minds of the people, particularly the younger generation, is necessary in order to create an atmosphere in which peace and true reconciliation can thrive.

Reaching final peace agreements will entail tremendous costs, particularly to Israel, which will have to meet new security challenges following withdrawal from additional territory under its control. Israel’s peace partners, especially the Palestinians, are in desperate need of economic assistance. The historic conflict between Israel and the Arab world has been a destabilizing influence in the region for much of the 20th century, at times nearly bringing major world powers into armed confrontation. Therefore, the entire international community has the responsibility and clear vested interest in providing the necessary resources to resolve this conflict. As in many other areas, the United States will be called upon to provide leadership. In 1999, Congress took an important step by passing the Administration’s three-year $1.9 billion package (fiscal years 1999, 2000 and 2001) to help implement the Israeli-Palestinian Wye River Memorandum. The United States and the international community also should encourage the Arab world to move toward the development of democratic institutions and respect for the rule of law as a means of ensuring the long-term political stability of the region.

During this election year, the organized Jewish community will stress to candidates and elected officials the importance of providing adequate levels of security and economic assistance to Israel and its peace partners. In addition, the community will interpret Israel’s concerns and perspectives with regard to the permanent status issues and the strategic significance of the Golan Heights. Some Arab, Muslim and mainline Protestant groups in the United States and elsewhere are likely to step up their efforts in support of a "shared" Jerusalem. The Arab states may press the UN to issue new declarations regarding Palestinian rights to "East Jerusalem." The JCPA joins with every Israeli government since 1967 in declaring its firm support for an undivided Jerusalem under Israeli sovereignty and reaffirming its endorsement for, and the timely implementation of, the Jerusalem Embassy Relocation Act of 1995.