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Head of the Shin Bet General Security Services Yuval Diskin told a cabinet meeting Sunday that Hamas had eased its demands on a cease-fire with Israel, nine days after a IDF operation in Gaza began.

"There are signs that Hamas has softened their stance towards the conditions of a cease fire," Diskin said.

Head of IDF Military Intelligence General Amos Yadlin also addressed the meeting and gave an assessment of the Gaza operation's progress.

"The organization [Hamas] took a serious blow, we killed hundreds of terrorists and damaged their ability to build weaponry," Yadlin said.

Yadlin also addressed the standing of Hamas in the Palestinian populace and throughout the world, saying that serious criticism of the organization is on the rise.

"Hamas has made itself an object of hatred in the world and the region, casting themselves amongst the lepers of the world, with Iran and Syria," Yadlin said.

He also said that while Hamas leader Khaled Meshaal in Damascus shows himself "smiling in his office in Damascus, the leaders in Gaza are dug into burrows."

Diskin told a cabinet meeting last Wednesday that IAF raids on Gaza had caused unprecedented damage to Hamas' infrastructure and personnel.

Hamas "has been hit like it has never been hit before," Diskin said.Diskin said the Islamic group's ability to govern the Strip has been seriously damaged, and that senior Hamas officials are hiding out in Gaza's hospitals, where they have "disguised themselves as doctors and nurses."

"Many Hamas officials are hiding in mosques throughout Gaza, out of the assumption that Israel will avoid attacking Muslim houses of worship," Diskin said. Dozens of the mosques have been turned into weapons stockpiles and command centers, he added.

Diskin also said the weapons factories used by Hamas have been wiped out in the offensive and dozens of tunnels used to smuggle arms into the coastal territory have been destroyed.

According to a Military Intelligence assessment released Tuesday, Israel's air offensive on Gaza has thus far destroyed one-third of the Hamas' rocket arsenal.