I wish to confirm to you that, in light of the PLO commitments included in your letter, the Government of Israel has decided to recognise the PLO as the representative of the Palestinian people and commence negotiations with the PLO within the Middle East peace process. Yitzhak Rabin, Prime Minister of Israel

Gaza, Jericho gain self-rule The current Israeli-PLO agreement clears the way for Palestinian self-rule in the Gaza Strip and the West Bank town of Jericho, changing control of territory Israel has occupied since 1967 `Six-Day War.' Territories and their status:

In an extraordinary exchange of letters, PLO leader Yasser Arafat and Israel Prime Minister Yitzhak Rabin took the first step toward wiping away an issue - mutual recognition - that had psychologically overshadowed all the other peace talks. Peace between Israel and the Arab countries is "more possible than any time before," says ex-Arab League U.N. ambassador Clovis Maskoud.