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Hamas may have totally ceased its terror attacks but it continues to manufacture Qassam rockets under cover of the cease-fire, senior intelligence officials revealed yesterday.

So far, however, this isn't changing the Israel Defense Forces's belief that the Mahmoud Abbas government, particularly Security Affairs Minister Mohammed Dahlan, should be given a chance to dismantle the extremist groups' military infrastructure.

A week into the cease-fire, the IDF believes all the armed groups have now accepted it, and are honoring it by not plotting any new attacks. As a result, the army has not initiated military operations against the armed groups, even in areas that have not yet been turned over to the Palestinian Authority.

The IDF is only acting against marginal Palestinian groups that have yet to join the hudna, a few dozen armed men in total.

Since Palestinian police have been responsible for security in Bethlehem, there has been an absolute end to violence there, not even stone-throwing incidents.

But the picture is more complicated in the Gaza Strip. There is still hostile activity against Palestinian targets by armed groups that the Palestinian Authority has yet to subdue. These attempted attacks are explained, in part, by the haggling underway between the gang leaders and the PA.