According to updates reaching
DEBKAfile's military sources, the number of missiles Hamas has managed to stockpile in Gaza passed the 10,000 mark in early May – despite Israel's partial blockade of the Gaza Strip. It is growing at the rate of some 30 new projectiles of many types smuggled in every two weeks. On April 9, the Palestinian fundamentalists shot 133 rockets at seven Israeli cities before Israel granted a ceasefire in lieu of an operation for smashing this arsenal.
Firing at the rate of 150 missiles a day, Hamas is currently capable of keeping southern Israel under constant attack for 66 days running.
When Israeli Prime Minister Binyamin Netanyahu told the Knesset Foreign Affairs and Security Committee May 30 about the Palestinian Hamas's expanding control of Egyptian Sinai, he omitted to mention the arms smuggling tunnels which openly flout Israel's blockade. The interaction between the Gaza Strip and Sinai and the effect it has of undermining Egypt's sovereign control of the strategic peninsula, which he also mentioned, is an old story going back years.
What has changed since Hosni Mubarak's ouster in February is that the Muslim Brotherhood and its offshoot Hamas have both gained traction in Egypt proper.
But Israel and its military continue to hold back from stemming the arms flow, now including anti-tank and anti-air missiles, into the Gaza Strip, just as they never interfered with Hizballah's acquisition of thousands of advanced rockets from Iran and Syria.
Before the current ceasefire, Hamas demonstrated in a single day, Saturday, April 9, that its improved missiles could hit the fringes of Kiryat Gat 21 kilometers from Gaza and Rishon Lezion, double that distance.
The country, all parts of which are covered by the two Hamas-Hizballah missile arsenals, was not informed by the prime minister, Defense Minister Ehud Barak or Chief of Staff Lt. Gen. Benny Gantz about the deal which induced Hamas to hold its fire for now.
While Hamas was presented simply as scared off by the threat of a major IDF operation,DEBKAfile's intelligence sources disclose that it was the consequence of a quiet deal offered Jerusalem by Egypt's military rulers at a time that scores of rockets were raining down.
Those rulers asked the Netanyahu government if they could assure Hamas there would be no big Israeli operation as a means of persuading them to accept a ceasefire: A four-point plan for the Gaza Strip's immediate future was attached to the Egyptian proposition:
1. Egypt would broker a reconciliation pact between the warring Palestinian factions, Mahmoud Abbas' Fatah and the extremist Hamas. And indeed this pact was signed a month later on May 4;
2. Egypt would gradually relieve Israel of responsibility for keeping the enclave supplied with fuel, foodstuffs, medicines and other essentials. This contradicts the official claim that the opening of the Rafah crossing from Gaza to Sinai Saturday, May 28, is to be restricted to persons not goods.
3. Egypt will maintain a large intelligence center inside the Strip. This means Cairo is going back to controlling security in and for the Gaza Strip, a function which lapsed under Hosni Mubarak. Hamas will therefore profit twice: once from an Egyptian-guaranteed Israeli pledge to refrain from attacking the Gaza Strip plus an Egyptian military shield for the territory.
4. Cairo will tell Hamas that its handling of intra-Palestinian affairs is contingent on two Hamas commitments: a total stoppage of missile fire on Israel and the restart of negotiations for the release of Gilead Shalit, the Israeli soldier it has held captive for five years.
The Netanyahu government was assured that the ceasefire would go into effect the instant this deal was accepted. The prime minister decided to accept the Egyptian package, thereby initiating a period of calm for the eight-day Passover festival and his four-day trip to Washington – even though Hamas had never directly undertaken any commitment toward Israel and Cairo alone was party to the truce.
The upshot of this deal is that, after firing an anti-tank missile April 7 at an Israeli school bus – and so causing the death of a 16-year old Israeli boy - and terrorizing a million civilians in their homes week after week, Hamas comes out clean as a whistle and safe from Israeli retribution. It can also keep on smuggling arms to the Gaza Strip through its Sinai tunnels because the military rulers in Cairo avoided any commitment to combat this illegal flow.
All in all, Hamas' prospects in Egypt are bright. The Muslim Brotherhood has every chance of rising to power in the parliamentary and presidential elections taking place in three months. Israel has no guarantee that the new rulers will honor the April 2011 commitments offered Israel by the provisional military rulers.
The only fly in Hamas's ointment is internal: Its unity accord with Fatah is stalled for now by a huge row between Hamas-Gaza and Hamas-Damascus over who gives the orders. This dispute is also a function of the Gaza faction's growing assertiveness under Cairo's protection and the Muslim Brotherhood's wing.
And if letting Hamas off the hook were not enough, Brinks vans continue to carry roughly $13 million in cash from Israel into the Gaza Strip every month to avoid censure for starving the Gazan economy of cash, even though the money besides lining the pockets of its rulers finances the smuggling tunnels through which arms reach the enclave and which also provide them with a second source of profit.
Hamas is not just gaining momentum in Egypt but most of all in the Gaza Strip itself.
---------------------------------------------------------------------------------------------------------

Egyptian authorities plan to follow up on the permanent opening of the Gaza Strip Rafah crossing - so ending its four-year siege - by liquidating EMG (the East Mediterranean Gas Company which is under contract to deliver Egyptian gas to Israel and supplied 40 percent of its needs in 2010.
DEBKAfile's Cairo sources report that Egypt's Oil Minister Abdallah Ghorab is taking advice from the ministry's legal advisers on ways to break the 2009 contract on order to halt gas deliveries to Israel.
This move is consistent with the policy of the military junta now ruling Egypt to distance themselves from Israel with all its ramifications. The Netanyahu government has not addressed this radical policy shift in the four months since Cairo ignored Israel's request to deny two Iranian freighters permission to sail through the through the Suez Canal on Feb. 22 although the ships were laden with arms and could have been legally stopped.
Saturday, May 28, Cairo opened the Rafah crossing to the transit to Sinai of Gaza Strip persons – though not yet goods - without coordinating this step with Israel, although this violated the 2005 Egyptian-Israeli accords for the Gaza crossings to be manned with European monitors and supervised by Israel which were signed just before Israel completed its withdrawal from the Palestinian enclave.
An Egyptian passport control station which will be open daily catered to hundreds of Palestinians passing through on the first day.
Cairo chose the same day to cut off natural gas supplies to Israel in response to pressure from Gaza's Hamas rulers. The pipeline, built by EMG from El Arish in Sinai to Ashkelon at a cost of $460 million, was blow up near El Arish up twice this year by Hamas activists.
Officials in Cairo claimed that shutting EMG down is predicated by the corruption probe underway against the deposed Egyptian President Hosni Mubarak and his sons Gemal and Alaa who, say those officials, had confessed to taking a regular commission on Egyptian gas sales and sold it at below-market prices.
Egyptian General Petroleum Corporation, a stockholder in EMG, is to file for its liquidation and ask for information on the funds allegedly transferred to the Mubaraks. Those officials declined to say whether EMG faced charges.
Cairo sources reported that efforts had been stepped up to detain the Egyptian businessman Hussein Salem who was close to the ruling family and suspected by the Egyptian prosecutor general of managing transactions for lining their pockets including the gas deal with Israel. He is reported hiding in Switzerland or Israel. Interpol has not caught up with him. Salem is said to have sold his holdings as an EMG stockholder o Jewish-American financial interests, while continuing to act as the middleman between the Israeli and American group of investors and the Mubaraks.
Last week, DEBKAfile's sources report, Cairo informed Israel that although the damage caused the gas pipeline by the April 27 explosion had been repaired, deliveries would not resume because EMG had refused to renegotiate prices with the Egyptian suppliers.
EMG accuses Cairo of breaking an international contract to maintain the current price level until 2013. The Egyptian side replies that investigations against the former president provide grounds for renegotiating the contracts immediately and adjusting prices sharply upward.
Cairo may be using the EMG liquidation threat and a total halt on gas supplies to Israel as leverage for getting a better price for Egyptian gas.
However, DEBKAfile's sources report that, as the affair drags on and meshes with the probes against the Mubaraks, the military junta appears to be maneuvering itself into a corner from which it cannot avoid sustaining the stoppage as an integral part of its campaign to prove to the Egyptian street how seriously it is fighting the former regime and its web of corruption.
Saturday, the Cairo court fined Hosni Mubarak the equivalent of $33 million for cutting off telephone and internet connections during protest rallies against his regime. That is only the first count of the massive case the prosecution is building up against the former president which includes opening fire on those protesters.
In Cairo's overheated climate, the decline of Egyptian-Israeli relations - or even pressure from Washington on behalf of American businessmen involved in the gas deal with Israel – are unlikely to influence Cairo's new rulers who are bent anyway on cooling Egypt's peace ties with Israel.
Although they pledged to honor all of Egypt's international contacts and treaties they are now backing out of two commitments – posting a third-nation party to monitor the Gaza crossings against terrorist traffic and the commercial gas transaction with Israel.