Israel's military-led administration in Gaza looked favorably on the paraplegic cleric, who set up a wide network of schools, clinics, a library and kindergartens. Sheikh Yassin formed the Islamist group Mujama al-Islamiya, which was officially recognized by Israel as a charity and then, in 1979, as an association. Israel also endorsed the establishment of the Islamic University of Gaza, which it now regards as a hotbed of militancy. The university was one of the first targets hit by Israeli warplanes in the recent war.
Brig. General Yosef Kastel, Gaza's Israeli governor at the time, is too ill to comment, says his wife. But Brig. Gen. Yitzhak Segev, who took over as governor in Gaza in late 1979, says he had no illusions about Sheikh Yassin's long-term intentions or the perils of political Islam. As Israel's former military attache in Iran, he'd watched Islamic fervor topple the Shah. However, in Gaza, says Mr. Segev, "our main enemy was Fatah," and the cleric "was still 100% peaceful" towards Israel. Former officials say Israel was also at the time wary of being viewed as an enemy of Islam.
Mr. Segev says he had regular contact with Sheikh Yassin, in part to keep an eye on him. He visited his mosque and met the cleric around a dozen times. It was illegal at the time for Israelis to meet anyone from the PLO. Mr. Segev later arranged for the cleric to be taken to Israel for hospital treatment. "We had no problems with him," he says.