* Israel all but rules out fully opening Gaza crossings * Diplomats warn reconstruction in doubt * Israel won't let Abbas send cash to Gaza * France sending frigate to patrol off Gaza By Adam Entous and Nidal al-Mughrabi GAZA, Jan 23 (Reuters) - Israel dismissed on Friday international calls for a full reopening of border crossings with the Hamas-ruled Gaza Strip, leaving a shaky ceasefire and post-war reconstruction in doubt. While a U.N. official praised Israel's "goodwill" for letting 120 truckloads per day of food and medicine into Gaza, other diplomats decried restrictions on steel and cement imports needed to make repairs after Israel's 22-day offensive. Israel also blocked the Western-backed Palestinian Authority from sending cash to Gaza, despite international warnings that President Mahmoud Abbas's standing was at stake. "They are afraid it will go to Hamas," a senior Western diplomat said of the cash. Barring a swift change in Israeli policy, the diplomat said the emergency response and long-term reconstruction were "bound to fail". U.S. officials voiced support, under certain conditions, for opening the crossings more fully, but they set no timetable. John Ging, who heads the operations of the United Nations Relief and Works Agency in the Gaza Strip, said the end-result of Israel's war, which killed 1,300 Palestinians and injured more than 5,000 others, was "more extremists". Thirteen Israelis were killed: 10 soldiers and three civilians hit by Hamas rocket fire. Hamas has conditioned abiding by the ceasefire, which took effect on Sunday, on Israel lifting its crippling blockade. But a top adviser to Israeli Prime Minister Ehud Olmert appeared to rule that out. "If opening the passages will strengthen Hamas, we won't do it," he said. Israel believes the restrictions at the crossings will give it leverage in Egyptian-mediated negotiations with Hamas to free Gilad Shalit, an Israeli soldier captured in 2006. But Israel finds itself under increasing pressure to do more to ease hardships for Gaza's 1.5 million residents. U.S. President Barack Obama said on Thursday Gaza's border crossings should be reopened to both humanitarian and commercial goods under a "monitoring regime" that includes Abbas's Palestinian Authority, Hamas's rival. Obama plans to dispatch his Middle East envoy, George Mitchell, to the region soon to try to shore up the ceasefire, which Israel declared after Washington and European powers promised to help stop Islamist Hamas smuggling in weapons. PREVENT ARMS France said it was sending a frigate to patrol international waters off Gaza and help prevent arms coming in by sea. The new U.S. administration has met with scepticism from Hamas, which won a 2006 Palestinian ballot only to be shunned by the West for refusing to renounce violence and recognise Israel. The isolation deepened when Hamas routed Abbas's secular Fatah to take over Gaza 18 months later. Obama on Thursday said an outline for a "durable ceasefire" included Hamas stopping cross-border rocket fire, which Israel had cited as the reason for its Gaza offensive. He also voiced sorrow at civilian suffering in the impoverished territory. "We had expected Obama to express willingness to talk about the real and the democratically elected representatives of the Palestinian people," said Hamas official Mushir al-Masri. He urged the new U.S. president to "stand at an equal distance in the Palestinian-Zionist conflict, and break with the flagrant American historical bias". Hamas dispatched a delegation to Cairo for ceasefire talks. Israel's envoy, Amos Gilad, held talks there on Thursday. Western diplomats said a humanitarian aid coordination conference for Gaza would be held around Feb. 12 in Egypt but would not deal with long-term reconstruction. Another meeting of major powers and donors was slated for late February, they said. Reeling from an air-and-ground assault which wrecked Gaza's infrastructure, Palestinians gathered for weekly prayers on Friday as Hamas security forces led clean-up efforts. Absent were Hamas chiefs, still in hiding out of concern Israel may try to assassinate them. Despite assertions by Israeli leaders that Hamas had been dealt a serious blow, nearly three out of four Israelis expected more violence to break out in the next year or two, according to a poll in the Maariv newspaper. Diplomats said the Israeli restrictions and Palestinian infighting meant even modest repairs would be difficult to make. Hamas still controls the Gaza Strip and plans to start distributing up to 4,000 euros ($5,000) in cash to families hard hit by Israel's offensive. But the Palestinian Authority under Abbas and Prime Minister Salam Fayyad wants to take the lead in any rebuilding, prompting calls for formation of a unity government. Israeli officials have ruled out dealing with such a government unless Hamas abandons its rejection of coexistence with the Jewish state. (Additional reporting by Douglas Hamilton in Gaza and Estelle Shirbon in Paris; Editing by Giles Elgood)
Hamas supporters hold banners and flags as other supporters run from tear gas fired by Israeli troops (unseen) during clashes in the West Bank city of Hebron January 23, 2009. Hamas ...