Up till the 1990's "Israel allowed for almost free movement of Palestinians into Israel." It was not a perfect world but the Palestinians screwed it up for themselves. There was mutual trust growing and it was leading to sustainable growth for both peoples and it would have definately led to a solid peace agreement. That all changed with the attacks and the onset of the separation wall.
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Mortar shell fired from Gaza at IDF force operating by the border, no injuries reported (Haaretz)