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For years, the tunnel economy in the Gaza Strip has flourished. An estimated 1,000 tunnels were burrowed underground, connecting the southern Gaza town of Rafah and the Egyptiancontrolled Sinai Peninsula. Everything from new cars (cut up into pieces for shipping) to cigarettes, weapons and drugs came through the tunnels.
Hamas, which took control of Gaza in 2007 sparking an Israeli blockade of the Strip, even taxed the goods coming out of the tunnels. Tunnel owners became Gazas nouveau riche, and tunnel workers earned a decent wage, mostly because of the danger that a tunnel could collapse made it a risky job.
But after an August 5 attack that killed 16 Egyptian soldiers in the Sinai Peninsula, the Egyptian government has closed dozens of tunnels, fearing that some of the attackers may have used them to enter Egypt from Gaza.
A delegation of Hamas officials visited Egypt this week to discuss the closure of the tunnels.
In a statement, Hamas official Mahmoud Zahar said the delegation discussed the possibility of shutting down Rafahs smuggling tunnels completely after opening another commercial border. There would be a signed agreement between Gaza and Egypt like any other country that has borders with Egypt.
Other Hamas officials say they would like to institute a free-trade zone that would help the Gaza economy recover from the Israeli boycott. Israel has allowed food and medicine to enter Gaza, and recently began allowing some construction materials for US-AID funded projects.
Earlier this week, some 200 Palestinians held a protest asking Egypt to stop closing the tunnels, saying they are the only way to supply Gaza with basic goods and necessities.
So far at least, supermarket owners told The Media Line, there are no shortages because of built-up stocks that are continuing to be sold. But, they said, there is concern that if more of the tunnels are destroyed, shortages could follow.
It is not clear how many tunnels have been demolished so far. Of the approximately 1,000 tunnels, about 225 are considered primary conduits. Estimates are that Egypt has demolished between one-third and half of these tunnels.
Hamas worried as Egypt closes tunnels - JPost - Middle East
So Morsi is closing tunnels more aggressively than Mubarak did.