PARIS. Apr 29: Negotiators on Friday signed an accord governing future economic relations between Israelis and Palestinians after months of talks and a final all-night session. reports AP.

As part of an overall plan to grant the Palestinians autonomy in Jericho and the Gaza Strip, the accord will limit some trade but allow the Palestinians to set taxes on Imports and incomes.

The Palestinians will also regulate banks in the territories. But the accord failed to Include provisions to establish a Palestinian currency, a symbol of statehoo*d rejected by the Israelis and insisted on by the Palestinians until late in the talks.

Israeli Finance Minister Ayvraham Shochat and Ahmed . Qorei. head of the PLO’s economic department, signed the agreement in a baroque hall of the French Foreign

Ministry.

There are many events of sadness in the world, but luckily we have these moments bf privileged importance." said France's Foreign Minister. Alain Juppe.

He expressed the hope that other agreements would soon -be concluded setting out the framework for relations between Israelis and Palestinians following the September signing of a peace accord. The news from Cairo is encouraging." Juppe added. . ■

The twb sides expected to sign the main agreement on self-rule in Cairo Wednesday.

■' This conflict has been costly, both in physical and material loss." said Shochat. "The time has come to invest our energies in the pursuit of peace and prosperity."

Shochat also noted that the agreement will "Defend our economy from an influx of goods."

The Palestinian side did not swerve from the sober tone it has maintained throughout the talks. This is a " contractual agreement for a temporary period.” said Qorei. also known as Abdul Alaa. " And it will be-reviewed.''

Lack of an economic accord would have complicated implementation of the main agreement, since International aid totalling 2 billion dollars being held up as donors waited for a ^pending plan.

The money is desperately needed to begin rebuilding the devastated occupied territories and set up a Palestinian government.

After about 450 hours of talks over the past six months, he main final sticking point centered on customs, both sides said.

Overall agreement was announced late Thursday nigh, but meetings continued until 8 a.m (0600 GMT) Friday. 90

minutes before the scheduled signing.

Last-minute disagreement surfaced Thursday on imports into the occupied territories, especially from Egypt and Jordan, an issue that was said Wednesday night to be settled, according to sources close to the talks speaking on anonymity.

Israeli officials were concerned that cheap imports could flood through the territories and into Israel.

The final agreement ensured the free movement of • goods except for five items on which quotas were imposed for five years: tomatoes, cucumbers. potatoes, eggs and poultry.

The agreement also covered tourism, labour, insurance and fuel sales. Gasoline in the territories is not to be sold more than 15 per cent less than in Israel.