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The IDF argues that closing Hamas-affiliated institutions cuts off a crucial source of funding earmarked for terror activities. The move is also aimed at making it difficult for Hamas to increase its influence in the West Bank, in a bid to stem Hamas' rising popularity and keep it from wresting control from the Palestinian Authority.

Prime Minister Ehud Olmert, Defense Minister Ehud Barak, Chief of Staff Lt. Gen. Gabi Ashkenazi and Shin Bet security service chief Yuval Diskin have approved the plan to target Hamas' civilian infrastructure.

Over the last few years, Hamas has built an "organizational system that, if necessary, could serve as the basis for a state," a senior IDF official told Haaretz. "It's simply a 'state of associations.' They accumulate a lot of popular support and rely on an enormous infusion of funds from abroad, to the tune of hundreds of millions of dollars a year, from bodies in Saudi Arabia, the Gulf states and Muslim communities in Europe, the United States and South America."

A senior IDF officer said the IDF, which is curbing Hamas' military capability and preventing it from challenging the Palestinian Authority more directly, is the primary obstacle to a Hamas takeover of the West Bank.

"They have knowledge, funds and skilled people, much more so than Fatah," the officer said. "They won the elections in many towns and local authorities, and they are gradually gaining control of more education, health, welfare and religious institutions."

But the officer said the IDF was fighting what he called a "rearguard battle."

"We're talking about strengthening the moderate elements - that is, the Palestinian Authority - but actually the PA has little control over the area. Hamas has taken over all the associations - not just blatantly Islamic bodies, but also those that used to be under PA control. The Palestinian public prefers Hamas, because they are less corrupt and more efficient."

But although the IDF is targeting Hamas-affiliated institutions, the IDF officer notes that "we have not yet declared war on Hamas." He said such a move would need to be undertaken by the state as a whole, rather than "local work" carried out by the IDF and Shin Bet.

Hamas-affiliated institutions that were targeted so far include schools, health centers, charities, and even soup kitchens and orphanages. Dozens of associations were shut down and the food confiscated.

Several dozen indictments have been issued thus far, and some operatives have been convicted and sentenced to jail terms. Police have also begun investigating suspected money-laundering and the transfer of terror funds. Unlike in the past, when seized intelligence information was left in storage for years because there weren't enough experts to translate and analyze it, this time a team of translators was set up to deal with the seized material.

"This campaign is what most disturbs Hamas in the West Bank," said a senior official. "But this is only the beginning of the effort, and we need more activities and more resources. When it comes to these matters, you can't compare the efficiency of the security forces to the level of effectiveness developed by the army and the Shin Bet over the last few years, in everything related to stopping the terror of suicide bombers from the West Bank."
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