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I doubt the story is a hoax or somebody would have exposed it. Nobody has...but I guess stranger things have happened. I will say that the UPI search engine is totally worthless. I typed in Israel as a key word for early 2001 and not one hit came up!

I can see where they got their info. There is a Paper written by Stephen C. Pelletiere called HAMAS AND HIZBOLLAH: THE RADICAL CHALLENGE TO ISRAEL IN THE OCCUPIED TERRITORIES. (You have to scroll down to get the link to the full article) In it it mentions that Israel did nothing to stop Hamas because they were interested in getting rid of the PLO and figured that Hamas would accomplish that goal. You have to read the complete 63 page document in Acrobat. The mentioning starts on about page 14. It really doesn't states anything about money. Also they advise you that The views expressed in this report are those of the author and do not necessarily reflect the official policy or position of the Department of the Army, the Department of Defense, or the U.S. Government.