When the intifada began, Israeli leadership was surprised when Islamic groups began to surge in membership and strength. Hamas immediately grew in numbers and violence. The group had always embraced the doctrine of armed struggle, but the doctrine had not been practiced and Islamic groups had not been subjected to suppression the way groups like Fatah had been, according to U.S. government officials.
But with the triumph of the Khomeini revolution in Iran, with the birth of Iranian-backed Hezbollah terrorism in Lebanon, Hamas began to gain in strength in Gaza and then in the West Bank, relying on terror to resist the Israeli occupation.
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."
"They do more to incite and sustain terrorism than curb it," he said.
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