As the United States, Europe and Arab nations continued to invest their hopes in the talks to reach a final agreement, settlement construction tripled in the occupied West Bank and grew at an unprecedented rate. Oslo-B was completed in September 1995 in Taba, Egypt. In accordance with the agreement, the Palestinian Authority was to be granted additional territories, Israel withdrew from densely populated areas of the West Bank, and reciprocal security cooperation was agreed when the PLO declared its support for the annulment of the terms of the Palestinian national pact denying Israel`s right to exist. Oslo I also set the agenda for the follow-up agreement, known as Oslo II, which would include the debate on the future administration of the city of Jerusalem (both sides claim it as their respective capitals) as well as issues relating to borders, security and, if applicable, the rights of Israeli settlers in the West Bank. All subsequent agreements were intended to implement the three previous key agreements. A few days before the official signing of Oslo I, the two sides signed a ”letter of mutual recognition” in which the PLO declared itself ready to recognize the State of Israel (before this agreement, they had considered the country contrary to international law since its creation in 1948) and the Israelis recognized the role of ”representative of the Palestinian people” of the PLO. Barak then unilaterally withdrew Israeli troops from Lebanon and returned to palestinian rail. At the Prime Minister`s insistence, Clinton convened a summit in July 2000 at Camp David, where he, Barak and Arafat attempted to reach a final agreement on the West Bank and Gaza Strip. There are differences of opinion as to the reasons for the failure of Camp David, but it is clear that the Israelis and Palestinians remained very divided despite Barak`s additional concessions on borders, Jerusalem and whether Israel would recognize the ”right of return” of Palestinian refugees. The summit ended without agreement; Clinton would blame Arafat for his failure. The Oslo Agreements included a series of agreements, the second of which, the Cairo Agreement on the Gaza Strip and Jericho, was signed in May 1994. This pact adopted the provisions of the original declaration, which approved an interim autonomy of five years for the execution of a Palestinian authority in two phases: first in Gaza and the city of Jericho, and then, after an election, in the remaining areas under Israeli military rule.
Discussions on the final status are expected to begin after three years, with a two-year deadline to reach an agreement. Issues such as borders, the return of refugees, the status of Jerusalem and Jewish settlements in the occupied territories were reserved for discussions on final status.