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Some Israelis settled in an unpopulated location and built a new town. They had good relations with the Bedouin residents of the Sinai.
The agreement between Israel and Egypt stipulated that Egypt would pay $80 million for the houses and infrastructure of Yamit. However, Israeli Prime Minister Menachem Begin (not Ariel Sharon as often thought) decided at the last minute to destroy the settlement instead. According to the Israeli ambassador to Egypt at the time, Moshe Sasson , Begin feared that the Israeli settlers would return to their homes surreptitiously and a disastrous clash between them and the Egyptians might eventuate. The decision to raze the settlement caused substantial ill-will towards Israel amongst the Egyptian public.
Egyptian geography Israeli history