For a long time the intractable nature of the Jerusalem problem ensured that it was persistently swept under the rug in Middle East peace negotiations. Indeed, the widespread belief has been that the dispute over the city’s future political status cannot be settled until most other issues in the Israeli–Arab conflict have been resolved. Under the terms of the Oslo Declaration of Principles signed in September 1993, Israel and the Palestine Liberation Organization (PLO) agreed to settle the thorny issue of Jerusalem in the final stage of permanent status negotiations.The Oslo Declaration of Principles, based on the secret Israel–PLO talks in Norway, established a staged approach and a timetable for reaching a permanent settlement. First, the interim negotiations would result in Israeli military withdrawal from Jericho and the Gaza Strip, the transfer of power to a nominated Palestinian National Authority, and the beginning of a five-year transitional period of Palestinian self-government under this Authority. Secondly, the Palestinians would elect a Council and achieve early ‘empowerment’ (self-government) in five spheres in the rest of the West Bank. Thirdly, the permanent status negotiations — to cover Jerusalem, Jewish settlements, refugees, security arrangements and borders, among other issues — would commence by the start of the third year of the interim period, and the resulting final settlement would take effect at the end of the interim phase. The negotiations leading to the signing of the Gaza-Jericho Agreement in May 1994 achieved the first objective. The signing of the Israel-Palestinian Interim Agreement (also termed Oslo II and the Taba Agreement) in September 1995 set the stage for a partial implementation of the second goal: Palestinians gained full control over six main West Bank towns and administrative responsibility for almost the entire Palestinian West Bank population. A Palestinian Council was elected in January 1996.