The Defense Ministry is offering the Egyptian government help to build a high-technology barrier at Rafiah to help stop smuggling, but Cairo has resisted Israeli involvement. The border barrier along the Philadelphi smuggling route can be penetrated because of several gaps that Egypt has not repaired.
According to Haaretz, Egypt has agreed to discuss the Israeli suggestion following pressure by the United States, which has supplied advanced technology to locate smuggling tunnels. Defense Minister Ehud Barak told ministry political-security director Amos Gilad to propose help for building a high concrete wall and an electronic fence in addition to using smuggling-tunnel detection equipment.
Israeli civilian and military intelligence officials are at odds concerning their estimates of Egyptian's efforts to stop smuggling. The government and the United States have complained that Egypt has been lax and even has cooperated with terrorists since the withdrawal of the IDF from the Philadelphi Route and Gaza following the expulsion of Jews from Gaza three summers ago.
Military intelligence thinks that Egypt has intensified anti-smuggling activity, but Israeli Security Agency (Shin Bet) director Yuval Diskin told the Cabinet last week that four tons of explosives have been smuggled into Egypt since the temporary Gaza ceasefire went into effect almost six weeks ago. 
Diskin told the Cabinet four tons of explosives have been smuggled into Egypt since the temporary Gaza ceasefire went into effect. 
The tunnels under the border often are more than 100 feet deep and are used to smuggle into Gaza weapons, explosives and a wide variety of contraband, ranging from shoes to medical equipment.
The smuggling has proved profitable for tunnel contractors, and Egyptian soldiers often are bribed to look the other way. On the Gaza side, Hamas collects taxes on what is brought in by others.
The smuggling tunnels date back to 1982, after the Camp David treaty placed the international border in the middle of the city of Rafiah.