August 14, 2007: Gaza has turned into a large prison camp, with Hamas trying to maintain control of the 1.5 million Palestinians. Hamas has forbidden anti-Hamas demonstrations, and over a hundred dozen people that have been injured or arrested for trying. Government officials who refuse to swear allegiance to Hamas are being fired, which is causing more disorder. Meanwhile, Hamas does nothing to halt terrorists making, or attempting, attacks on Israel. In response, Israel continues to maintain an intelligence operation in Gaza, and the army makes raids every few days to capture or kill key terrorists. About 50 Gaza terrorists a week are being killed, wounded or captured by these operations. There has also been a reduction in Kassam rockets being fired into Israel, caused by a shortage of fertilizer (used to make propellant and explosives) in Gaza. Hamas has not dipped into its reserve of professionally made rockets, preferring to save these for a larger attack, perhaps coordinated with Hizbollah in Lebanon. These rockets are stored in residential neighborhoods, which would force the Israelis to kill civilians in order to destroy the rockets.

Meanwhile, Israel and Fatah continue to cooperate and negotiate. Fatah is cooperating with Israel in identifying and arresting Palestinian terrorists who continue to operate in the West Bank. Israel is willing to negotiate a deal to establish a Palestinian state in the West Bank, and leave Gaza for later. But the Palestinians must be able to control their radicals, or it's no deal.

In northern Lebanon, Palestinian terrorists allied with al Qaeda, have offered to surrender, but only to Palestinians. The Lebanese army, which has lost 136 men fighting the Palestinians for three months. About fifty of the Palestinians are left, and the army is demanding unconditional surrender.