Israel and Hamas may currently be locked in deadly combat, but, according to several current and former U.S. intelligence officials, beginning in the late 1970s, Tel Aviv gave direct and indirect financial aid to Hamas over a period of years.
Israel "aided Hamas directly -- the Israelis wanted to use it as a counterbalance to the PLO (Palestinian Liberation Organization)," said Tony Cordesman, Middle East analyst for the Center for Strategic Studies.
Israel's support for Hamas "was a direct attempt to divide and dilute support for a strong, secular PLO by using a competing religious alternative," said a former senior CIA official.
According to ICT papers, Hamas was legally registered in Israel in 1978 by Sheikh Ahmed Yassin, the movement's spiritual leader, as an Islamic Association by the name Al-Mujamma al Islami, which widened its base of supporters and sympathizers by religious propaganda and social work.
According to U.S. administration officials, funds for the movement came from the oil-producing states and directly and indirectly from Israel. The PLO was secular and leftist and promoted Palestinian nationalism. Hamas wanted to set up a transnational state under the rule of Islam, much like Khomeini's Iran.
Israel was certainly funding the group at that time. One U.S. intelligence source who asked not to be named said that not only was Hamas being funded as a "counterweight" to the PLO, Israeli aid had another purpose: "To help identify and channel towards Israeli agents Hamas members who were dangerous terrorists."
In addition, by infiltrating Hamas, Israeli informers could only listen to debates on policy and identify Hamas members who "were dangerous hard-liners," the official said.
In the end, as Hamas set up a very comprehensive counterintelligence system, many collaborators with Israel were weeded out and shot. Violent acts of terrorism became the central tenet, and Hamas, unlike the PLO, was unwilling to compromise in any way with Israel, refusing to acquiesce in its very existence.
But even then, some in Israel saw some benefits to be had in trying to continue to give Hamas support: "The thinking on the part of some of the right-wing Israeli establishment was that Hamas and the others, if they gained control, would refuse to have any part of the peace process and would torpedo any agreements put in place," said a U.S. government official who asked not to be named.
"Israel would still be the only democracy in the region for the United States to deal with," he said.
All of which disgusts some former U.S. intelligence officials.
"The thing wrong with so many Israeli operations is that they try to be too sexy," said former CIA official Vincent Cannestraro.
According to former State Department counter-terrorism official Larry Johnson, "the Israelis are their own worst enemies when it comes to fighting terrorism."
"The Israelis are like a guy who sets fire to his hair and then tries to put it out by hitting it with a hammer."