"If the Oslo accords allow 20,000 weapons for the PA [Palestinian Authority] force, we reckon that there are close to 40,000 in the field. I'm not talking about militant groups and terrorist groups," according to Lt. Col. Daniel Beaudoin, a senior officer at Coordinator of Government Activities in Gaza.

He added that the PA does not have the ability to change the terrorist mentality. "They've been so busy trying to blow us up for last 30 years, and they haven't been putting enough effort into trying to find some way of building up a viable system. And this is our expectation for the future….How are we going to bring about change in the Palestinian police force? How are you going to deal with kidnappings of internationals in order to release some guy who was apprehended because he ripped off his car?"

Beaudoin said the only hope is for the Arabs to link their economic future with dismantling the terrorist infrastructure. He admitted that the international community is "more adamant about it than we are almost."

The IDF officer warned that Gaza could "burst at the seams with RPGs within six months."

Hamas terrorists Saturday continued to flex their muscles and challenge PA control of Gaza. It revealed for the first time the names of seven chief terrorists and published their photographs on a web site. Hamas terrorist chief Mohamed Deif threatened on Saturday that his terrorists will respond to attacks, "whether from the Authority or from the Israelis." Israel authorities have been hunting for Deif for 20 years.

Israel also faces increased terrorism in the north where Hezbollah terrorist leader Sheikh Hassan Nasrallah has claimed his organization has 12,000 rockets capable of striking northern Israel.