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Edition: U.S. Article Comments (4) Slideshow Save Email Print Reprints Most Popular Most Shared BP pegs spill at worst-case 100,000 bpd | Video 10:58am EDT New Jersey battles over tax on millionaires 20 Jun 2010 Factbox: Winners and losers from a firmer yuan 4:14am EDT Verizon offers FiOS try-out 12:24am EDT China unshackles currency ahead of G20 meeting | Video 11:37am EDT Miley Cyrus "no underwear" photo is fake, blogger says 15 Jun 2010 BP restarts drillship system after 10-hour lapse 19 Jun 2010 Music business badly needs Eminem's "Recovery" 11:00am EDT Wall Street jumps on China yuan move | Video 11:48am EDT Putin boasts new jet fighter better than U.S. plane 17 Jun 2010 BP pegs spill at worst-case 100,000 bpd | Video 10:58am EDT Dell in talks with Google over Chrome OS 3:37am EDT Verizon offers FiOS try-out 12:24am EDT China unshackles currency ahead of G20 meeting | Video 11:37am EDT Factbox: Winners and losers from a firmer yuan 4:14am EDT New Jersey battles over tax on millionaires 20 Jun 2010 Shot grizzly tied to hiker death near Yellowstone 20 Jun 2010 German student attacks Hell's Angels with puppy 15 Jun 2010 Wall Street rises as China move boosts resource shares | Video 10:10am EDT Facebook '09 revenue neared $800 million 18 Jun 2010 Embattled Israel reverses rules on Gaza blockade Joseph Nasr JERUSALEM Mon Jun 21, 2010 10:47am EDT Related News Q&A: What has changed in Israel's blockade of Gaza? Sun, Jun 20 2010 Israeli panel revives East Jerusalem housing plan 9:04am EDT Middle East monitors welcome Israel's shift on Gaza 9:43am EDT Germany denies Israel ties hurt over minister row 9:49am EDT Egyptian Bedouin attack trucks heading to Israel 10:47am EDT 1 / 2 Palestinians ride boats in a preparation for the arrival of Lebanon-Gaza flotilla at Gaza Seaport June 21, 2010. Credit: Reuters/Ismail Zaydah JERUSALEM (Reuters) - Israel said Sunday it was easing a land blockade on the Gaza Strip to allow in all goods except for arms and materials used to make them. World The softening of a policy criticized as collective punishment of Gaza's 1.5 million Palestinians to weaken their hardline Islamist leaders follows an Israeli raid on a blockade-running flotilla in which nine activists died. The United States quickly welcomed the shift and said President Barack Obama would hold a delayed meeting with Israeli Prime Minister Benjamin Netanyahu in Washington on July 6. Israel's old rules banned everything it chose not to let in. Netanyahu said Israel would "as quickly as possible" publish a list of banned goods and all items not on it would be allowed in to the Palestinian territory run by the Hamas Islamist group. "Israel seeks to keep out of Gaza weapons and material that Hamas uses to prepare and carry out terror and rocket attacks against Israel and its civilians," he said. "All other goods will be allowed into Gaza." Israel has been under pressure to ease its blockade since the May 31 raid on ships bringing aid to Gaza. Israel says the nine Turkish activists killed were waiting to attack Israeli commandos but the outcome sparked an international outcry. Israel's allies, including the United States and the European Union, said the blockade was a failing policy that had become counter-productive and difficult to defend. Welcoming the change, the White House announced the new date for the U.S. and Israeli leaders to meet. Netanyahu was supposed to see Obama at the White House on June 1 after of a trip to Canada but canceled to return home after the flotilla raid. "Implementation of the policy announced by the government of Israel today should improve life for the people of Gaza and we will continue to support that effort," the White House said. Hamas said the Israeli announcement fell short of international demands to lift the blockade completely. "Hamas rejects this decision. This is an attempt to sap international anger over the blockade on the Gaza Strip," Hamas official Ismail Radwan told Reuters by phone from Gaza. Under the new rules Israel will let in building materials for housing projects approved by the Palestinian Authority (PA) and supervised by international organizations. Hamas does not recognize the legitimacy of the PA, based in the West Bank. The projects included deal with schools, health facilities, water treatment and sanitation, the Israeli statement said. But it said it would keep the right to ban "dual-use" construction materials that it says could be used by Hamas to manufacture weapons and to rebuild its military facilities. BLAIR Netanyahu announced the plan together with international Middle East envoy Tony Blair, who had been lobbying Israel to limit its open-ended embargo to a list of specified items. Blair represents the Quartet of international powers seeking Middle East peace -- the United States, European Union, United Nations and Russia. He said the best response from Hamas would be to stop attacking Israel and free Gilad Shalit, an Israeli soldier captured and held for four years. Blair said the increased flow of goods into Gaza would allow for the "expansion of economic activity" there. The United Nations says the blockade has not only deprived the poorest in Gaza of basic needs but suffocated the enclave's chances of trading. It insists building materials be allowed in. The coastal strip, where 1 million Palestinians depend on aid from the United Nations and other international relief agencies, suffered severe damage in a three-week Israeli offensive launched in December 2008. There has been practically no reconstruction since thousands of homes and factories were wrecked. Israel said it would expand operations at border crossings controlled by its army to allow more goods into Gaza. It said it would consider opening more border crossings and allow more people in and out of Gaza, if calm persisted along the border. Israel's 2008/09 winter offensive was triggered by incessant rocket fire into Israel from Gaza, which caused few casualties but struck fear into southern Israeli communities. Israel says it will maintain a sea blockade on Gaza to prevent ships ferrying longer-range rockets to Hamas from its main backer, Iran. Hamas, which refuses to recognize Israel, seized control of Gaza in 2007 after routing forces loyal to the Fatah movement of Palestinian President Mahmoud Abbas, who heads the PA. Hamas is opposed to the current indirect peace talks with Israel, mediated by the Obama administration. (Additional reporting by Douglas Hamilton in Jerusalem, Ali Sawafta in Ramallah and Matt Spetalnick in Washington, Editing by Douglas Hamilton and Richard Meares) World Comments See All Comments (4) | Post Comment Jun 21, 2010 8:17am EDT 1) This story is about Israel, not Iraq. 2) The video that is referenced in the link you put up is from Afghanistan, not Iraq. You fail, hard. BGG Report As Abusive Jun 21, 2010 11:05am EDT I am sorry, but this is just a ruse, as Bibi is meeting with Obama soon and wants him to see what great strides they have made. They are still using Activists debit cards and money. They still haven’t unloaded the ships. They are just making a new list of goods. lila24000 Report As Abusive Jun 21, 2010 11:16am EDT I predict hamas rockets will be launched into Israel within 18 months and Israeli children will die. Israel will respond accordingly, and Gazan children will die. Figuring how this will end is not rocket science. Ask yourself how you would feel if drug dealers in Canada or Mexico started launching missiles into the U.S. on a regular basis, and the Canadian or Mexican governments explicitly stated the U.S. doesn’t have the right to exist and they would do nothing to stop it. Of course, if it was your child that was killed it would be different. Insane. garrisongold Report As Abusive Jun 21, 2010 11:44am EDT Propoganda… Useless stories just giving Bold Big Letters to an old news to make it seem more pleasing. Israel has been saying this for the last 2 weeks & yet hasn’t made up their mind on whats acceptable and whats not? :S Ridiculous tipu420 Report As Abusive See All Comments (4) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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