Israel and the PLO signed an Agreement in August 1994, providing for the transfer of “spheres” of civil authority to the Palestinian Authority in the Judea and Samaria. The Agreement put into effect the early empowerment phase of the Declaration of Principles. It provided for the transfer of powers to the Palestinian Authority within five specified spheres: education and culture, health, social welfare, tourism, direct taxation, and Value Added Tax on local production. The transfer of powers and responsibilities were to exclude Jerusalem, settlements, military locations and, unless otherwise provided in the agreement, Israelis. Main points of the agreement; background and implementation, from the Israeli Foreign Ministry.