Smuggling by tunnel goes legit in Gaza

updated 8:19 p.m. ET Oct. 8, 2008

RAFAH, Gaza Strip - Gaza's smugglers are going legit: Owners of the scores of tunnels running under the Gaza-Egypt border have registered with the Hamas authorities, pledged to pay workers' compensation and hooked up their operations to the electricity network.

The once-clandestine business has come out into the open. In one place, dozens of large tents, each marking a tunnel work site, were pitched just yards from an Egyptian watchtower beyond the border wall.

With the Gaza Strip's borders virtually sealed by Israel and Egypt for the past 16 months, the tunnels — some 200, by conservative estimate — are among the territory's main lifelines and are seen as vital for keeping the Islamic militant Hamas in power.

"The tunnels have become the main source of commodities in Gaza, and every day the closure continues, the importance of the tunnels increases as well," said Gaza economist Omar Shaaban.

The underground imports — from refrigerators, food and clothes to fuel and anti-tank rockets — help to keep Gaza's economy afloat. But Israel says they are also building up Hamas' arsenal.

Egypt pressured to clamp down
Opposition legislator Yuval Steinitz, citing Israeli intelligence briefings, said the tunnels have enabled Hamas to arm and equip 20,000 to 30,000 fighters since Israel pulled out of Gaza in 2005.

Under U.S. pressure, Egypt has been trying harder to clamp down. Egypt says it has destroyed scores of tunnels since Hamas' violent takeover of Gaza in June 2007 and has stepped up the pace after getting $28 million of U.S. detection equipment four months ago.

Israel has long complained that Egypt is ignoring the smuggling. Israeli Foreign Ministry spokesman Aviv Shiron praised the latest Egyptian effort, but added that "much more has to be done."

He said the influx of weapons into Gaza endangers not only Israel, but the entire region.

The growth of a jihadist army on Israel's doorstep could also weaken support in Israel for a pullout from the West Bank, as part of a peace deal with the Palestinians. In any case, an agreement would likely not be implemented as long as Hamas rules Gaza.

Palestinian smugglers say Egypt's demolitions disrupt business, but tunnels can quickly be reopened.

After seizing power, Hamas initially shut down some tunnels, in part to prevent its political foes from fleeing. However, since then it has largely allowed smugglers to operate, and in recent months has stepped up its supervision.

"We are watching what is coming through and we prevent the entry of weapons and drugs," said spokesman Ehab Ghussen, spokesman for Gaza's Interior Ministry, adding that the tunnel trade would be halted if borders reopen.

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