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On the other side, Gaza's Hamas rulers did not welcome the limited entrance of permitted items, calling it "useless and of no value for the Palestinian people."
"The problem is not having more goods entering or not entering from time to time," said Hamas spokesman Sami Abu Zuhri.
"The problem here is the siege which is imposed on the Gaza Strip. What is required is lifting the siege completely by opening all crossings leading in to Gaza," added Sami Abu Zuhri.
Israel has been under intense international pressure to loosen its three-year embargo on Gaza since Israeli commandos killed nine Turkish activists in a May 31 raid on a flotilla who were carrying international activists trying to breach the blockade.
Fayyad said at a news conference on Monday that the effort to lift the siege on Gaza should be "stepped up" adding that the effort to ease and in fact lift the siege, should "move speedily."
Israel closed Gaza's borders after the Islamic militant Hamas group seized power in the territory three years ago.
Under the old blockade rules, Israel permitted only a few dozen types of products, including a limited amount of basic food and medicine, into the territory.
The system has forced Gazans to become accustomed to shortages of basic items like fresh meat and spices or to depend on erratic deliveries of goods smuggled through tunnels along the southern border with Egypt.
Now, everything will be allowed into Gaza, except for items on the list.
But it remains unclear how much the order will help Gaza rebuild the damage caused by Israel's three-week military offensive in the winter of 2008-2009.
The operation, launched to stop Hamas rocket attacks, destroyed thousands of homes, buildings and public infrastructure.
An official familiar with the list said items like iron, steel, cinder blocks, chemicals, fertiliser, building aggregates and jeeps would only be permitted in coordination with the rival Palestinian government in the West Bank and international agencies overseeing construction projects.
Israel fears that Hamas could divert these items for military use.
Israel has previously allowed in only a trickle of construction materials for projects overseen by international aid agencies.
Ehud Barak, told a parliamentary committee on Monday that a naval blockade on Gaza would remain in place to keep weapons from reaching Hamas, an official who attended the meeting said.
The official spoke on condition of anonymity because the hearing was closed.
Hamas has controlled Gaza since ousting forces loyal to Palestinian President Mahmoud Abbas in 2007.
But neither Israel nor the Abbas-Fayyad government has relations with the militant group.
The various sides will now have to find a way to get materials into the seaside strip.
Other obstacles also remain.
A top Israeli military official for the Gaza region, said Israel would ease its ban on raw materials for Gaza's devastated manufacturing sector.
But he said there were no plans to allow Gaza factories to begin exporting.
The sanctions on the manufacturing sector have forced hundreds of factories to close and led to the loss of tens of thousands of jobs.
The official also said there were no immediate plans to open additional cargo crossings with Gaza.
Israel currently operates just one crossing, and Palestinian economists say it does not have enough capacity to meet Gaza's construction needs.
Gaza business people and human rights groups have expressed concern that Israel's changes will largely be cosmetic.
Read more at: http://www.ndtv.com/article/world/israel-eases-gaza-closure-but-restrictions-remain-35807?cp
