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Hamas appears fragile and divided over its actions, nearing a possible September vote in the United Nations General Assembly on recognition of a Palestinian state. But Hamas also showed once again --- despite its weakness and division --- that it exists in the Gaza Strip and that Israel has to negotiate with it if West Jerusalem wants order in the south of the country. The immediate escalation after the bus attack increased Hamas's bargaining powerwith Israel, Egypt and, indirectly, with the Palestinian Authority in Ramallah.