"They (Palestinians) are investing a great effort in developing mortars and Qassams, without success," he said. "We are undertaking every effort to thwart this and are acting against every chemist and workshop. We view them as ticking bombs and are acting to ensure they don't have the ability to develop the kind of weapons that were fired at (the southern town of) Sdeort."
According to Ze'evi Farkash, the Palestinians view the Gaza disengagement as a first step before further withdrawals from the West Bank.
"In the immediate future there will be a reduction in terror coming from Gaza and in Gaza," he said, and noted Palestinian leader Mahmoud Abbas was able to maintain a relative lull in violence that is likely to last until the Palestinian elections, scheduled for January 2006.
"At the end of the process, will Abu Mazen (Abbas) be able to dismantle the terror infrastructure and collect weapons? The likelihood of this happening in the coming year is low," he said.
'Abbas wants democratization'
The intelligence chief noted security officials are concerned about similar scenes to those that followed the IDF's withdrawal from Lebanon in 2000, namely mass parades by civilians heading towards army positions.
"I will not be surprised to see parades even with the IDF still in Gush Katif and Netzarim," he said. "Such events can lead to other directions. There is quiet, but they (Palestinians) have no patience."
Regarding Abbas, Ze'evi Farkash said late Palestinian leader left him a terrible legacy.
"Arafat developed the culture of Jihad and left behind him a torn society and anarchy," he said. "I believe that what Abu Mazen has placed on the table is democratizations."
"Abu Mazen believes the conflict must be resolved through negotiations," the intelligence chief said. "He speaks about one rule and one law. Is it working? In the past six months I believe he has started a bold change. We said the likelihood of terror during the disengagement was low and we were right."
However, Ze'evi Farkash noted PA security forces are currently unable to deal with terrorists.
"Abu Mazen doesn't speak about terror," he said. "The Hamas is strengthening and threatening the regime."