JERUSALEM – Israel ruled out giving Palestinian Arabs their own gate to the world, insisting yesterday it will control traffic in and out of Gaza after Israeli settlers and soldiers leave. Palestinian Arabs complained that Israel is unwilling to loosen its grip on the coastal strip.

Just a week before the pullout begins, Israel’s Security Cabinet met to consider how to deal with the crossing point at Rafah between Gaza and Egypt. Rather than endorse a plan for international inspectors to handle customs and security, the Israelis insisted on moving the crossing to the point where Gaza, Egypt, and Israel meet – and on retaining Israeli control.

No final decision was made, however, indicating key issues will be left unresolved when the pullout begins. The two sides are also discussing removal of rubble, the fate of greenhouses and other matters.

The Rafah crossing to Egypt is Gaza’s only link to the outside world, as the seaside territory is surrounded on its other two sides by Israel. The border crossing issue is also considered vital by Israelis, who worry about weapons smuggling into Gaza and about the flow of cheap goods into Israel.

Israel has controlled the Rafah crossing since it captured Gaza in the 1967 war. Israel maintains the pullout will end its occupation, but Palestinian Arabs and international agencies say if Israel continues to control Gaza’s borders, air space and seacoast, it will still be considered an occupier.

Speaking in the closed Security Cabinet meeting, the defense minister, Shaul Mofaz, made clear Israel is not prepared to trust Palestinian Arabs to handle security and commerce by themselves.

Arms smuggling is a main concern. Leaders like Benjamin Netanyahu, who resigned from the Cabinet on Sunday to protest the pullout, warned that Gaza would become a terrorist camp with rockets aimed at Israeli cities.

Defense Ministry officials quoted Mr. Mofaz as saying that Gaza must be demilitarized, and Israel must oversee the seacoast. Also, he said, Israel must control the flow of products into Palestinian Arab territories. He said that until Palestinian Arabs prove they can handle Gaza, Israel must protect itself.

Therefore, Mr. Mofaz recommended moving the Rafah crossing about two miles to an Israeli community at the site where the borders of Egypt, Israel, and Gaza converge, Kerem Shalom.

International envoy James Wolfensohn, who has been trying to broker an agreement on border crossings, has urged Israel to make a decision before the withdrawal starts. He has said the pullout will succeed only if Gazans can move freely – a prerequisite for reviving their economy.

Also, Mr. Mofaz said Israel would pull out of the border road, called the “Philadelphi corridor,” by year’s end if an agreement is reached with Egypt over deploying 750 Egyptian soldiers to patrol there.

During four years of Palestinian-Israeli fighting, Israel has struggled to stop Palestinian Arab arms smuggling through tunnels under the road, and many Israelis are hesitant to relinquish control. In recent months, however, Israeli security officials say smuggling has all but stopped through cooperation among Egyptian, Palestinian Arab, and Israeli authorities.

Yesterday the Israeli military sent formal letters to the Gaza settlers informing them that as of August 15, their presence in Gaza will be illegal. Forcible removal of settlers is to begin August 17.

Though some settlers are expected to resist, a spokesman for the government agency in charge of compensating the settlers, Haim Altman, said 1,018 of the 1,700 affected families have applied for compensation.