Shin Bet Chief (Israeli Domestic Security Service) Yuval Diskin, said on Tuesday that the collapse of the Palestinian Authority (P.A) and its institution does not serve the Israeli interest in the area.

The statements of Diskin came during a meeting with the Knesset Foreign Affairs and Defense Committee on Tuesday.

Diksin stated that if money is not transferred to the P.A, it will not be able to provide the residents with the needed services, and its ministries will collapse, which will have a negative aspect on the Israeli interests.

Israeli sources reported that the Shin Bet chief noted that the economic crisis in the Palestinian areas “is weighing heavily on the Hamas-led government”, adding that there have been a number of recent attempts to smuggle suitcases jam packed with foreign currency into the Gaza Strip.

He added that he is not sure that the Palestinian President, Mahmoud Abbas, will be able to conduct the referendum on the detainees’ document.

“Abbas managed to bring about a decision regarding the referendum”, Diskin said, “But it is not certain that he will be able to carry it out”.

Diskin stressed that Israeli should not interfere in this issue adding that there is no Palestinian faction which is interested in internal conflict and clashes, “but the tension among the factions is very hight, and has caused dozens of casualties so far”.

According to Diskin, Abbas does not have full control over the security devices.

Also, Diskin said that arms trafficking from Sinai into the Gaza Strip has significantly increased since Israeli withdrew from the Strip in September 2005.

Diskin claimed that more than 10 Tons of explosive materials, several millions of bullets and at least 10.000 guns in addition to hundreds of RPG shells and a limited number of anti-aircraft missiles were smuggled into the Gaza Strip.

Moreover, Diskin claimed that the security forces have recently identified initial signs that “World Jihad has begun building an ideological foothold in the West Bank”..

The head of the domestic security service added the that Israeli forces recently arrested individuals of the Islamic Jihad in the Jerusalem and Nablus areas. He claimed that the arrestees were planning for attacks against Israeli targets.

“The plans were very general and did not include specific timetables”, Diskin claimed, “The Islamic Jihad has an infrastructure set up in neighboring Jordan, but Jordanian authorities are operating widely against it”.