Middle East: The Good Life in Gaza

Luring settlers with cheap housing, Shamir strengthens his grip on the territories and erects a barrier to peace

Michel Bloch wanted to retire to a quiet Jewish community with cheap housing and excellent security. Five months ago, he found what he was looking for in an enclave amid 750,000 largely destitute and rebellious Palestinians in one of the most densely populated areas in the world: the Gaza Strip. "There is no place else like this," says Bloch, 57, as he tends the spacious sea-view garden of his $70,000 two-bedroom duplex. "It's a real paradise."

That illusion is shared by 3,000 other Jewish settlers in the posh enclosures who rely on barbed wire, army roadblocks and heavy government subsidies to...

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