Recognizing the desirability of supporting the Palestinians in their struggle for independence, on July 28, 1988, King Hussein announced the cessation of a $1.3 billion development program for the West Bank, explaining that the measure was designed to allow the PLO more responsibility for the area. Two days later, he formally dissolved Parliament, ending West Bank representation in the legislature. Finally, on July 31 he announced the severance of all administrative and legal ties—with the exception of guardianship over the Muslim Holy Sites of Jerusalem—with the occupied West Bank.
This severance of ties allowed Jordan’s electoral law to be changed, redrawing the map to include only East Bank districts. Disengagement therefore marks the turning point that launched the current democratic process, and began a new stage in Jordan’s relationship with the Palestinians.
Source: The Royal Hashemite Court