Hi back ... it is certainly true that Israel sought to minimise PLO terrorist threat by engaging with social-welfare HAMAS in the 1980's.
Clinton initiative (Camp David/Olso Accords) helped Arafat to rise from status of a grubby terrorist to see PLO become Palestinian National Authority and statehood recognised by international community and subsequently endorsed by Arab League ... recognition of the State of Israel and to live in peace.
HAMAS boycotted the first democratic elections in 1996 and commenced the Palestinian Civil War (the war of brothers) which has seen 1000's of Palestinians dead but you won't see it on Al Jazeera.
Arafat dies in 2004 and Palestinian Authority seen to be weak and corrupt. Hamas wins election in 2006 and regarded by international community as a terrorist organisation. (Hamas wins 72/132 seats)
Economic and diplomatic sanctions imposed by UN, EU, US, and Russia on Palestinian National Authority and specifically ...
* withholding of tax revenues collected in the Palestinian territories by Israel *cutoff of international aid to the Palestinian National Authority *restrictions by Israel of movement within the Palestinian territories and of goods moving in and out, and *international banking restrictions.
Economic sanctions will continue until HAMAS undertakes ...
*Renunciation of violence, *Recognition of the State of Israel as had the PLO government, and *Acceptance of previous agreements between Israel and the Palestinian National Authority.
Since Jan 2006, HAMAS has refused and as late as Dec08, the Arab League is threatening sanctions if a resolution is not forthcoming.
Following the military take-over of Gaza by HAMAS, the international community have reduced economic sanctions for the Abbas led Palestinian National Authority and transfer funds previously withheld.
