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Hamas said on Monday the Egyptian-brokered talks, aimed at forging a unity government and healing the schism between politicians in Gaza and the occupied West Bank, had gone badly but had not collapsed.
While Gaza’s rulers have been reluctant to criticise Mursi in public, ordinary Gazans are slightly more vocal.
“Egyptian measures against tunnels have worsened since the election of Mursi. Our Hamas brothers thought he would open up Gaza. I guess they were wrong,” said a tunnel owner, who identified himself only as Ayed, fearing reprisal.
“Perhaps 150 or 200 tunnels have been shut since the Sinai attack. This is the Mursi era,” he added.
The tunnellers fear the water being pumped underground might collapse the passage ways, with possible disastrous consequences.
“Water can cause cracks in the wall and may cause the collapse of the tunnel. It may kill people,” said Ahmed Al-Shaer, a tunnel worker whose cousin died a year ago when a tunnel caved in on him.
Six Palestinians died in January in tunnel implosions, raising the death toll amongst workers to 233 since 2007, according to Gazan human rights groups, including an estimated 20 who died in various Israeli air attacks on the border lands.
Israel imposed its blockade for what it called security reasons in 2007. The United Nations has appealed for it to be lifted.
At one stage an estimated 2,500-3,000 tunnels snaked their way under the desert fence but the network has shrunk markedly since 2010, when Israel eased some of the limits they imposed on imports into the coastal enclave.
All goods still have to be screened before entering Gaza and Israel says some restrictions must remain on items that could be used to make or to store weapons.
This ensures the tunnels are still active, particularly to bring in building materials. Hamas also prefers using the tunnels to smuggle in fuel, thereby avoiding custom dues that are payable on oil crossing via Israel.