Egypt, Israel approve plan to resettle Sinai dwellers
Cairo — Egypt and Israel have agreed in principle on a plan to resettle some 5,500 Palestinians. Now living in a camp in the Egyptian section of the Sinai town of Rafah, the refugees would be placed in the Gaza Strip, a senior Israeli Embassy official said Monday.
But the official said his government would only allow them behind Israeli borders if their property were adequately compensated for by the Egyptian authorities. This is so Israel could finance the construction of their new houses in Gaza.