Palestinians stream out of Gaza

By Will Rasmussen and Nidal al-Mughrabi

RAFAH, Egypt (Reuters) - Thousands of Gazans streamed past a flattened border wall into Egypt on foot or by bicycle for a second day on Thursday to stock up on goods scarce in the coastal strip, defying an Israeli blockade.

A handful of camouflaged Egyptian riot forces watched from a distance as Gazan men, some dressed in traditional black and white scarves, grabbed sheep by the horns and dragged them over the border, a day after Palestinians blasted it open.

"We haven't eaten meat since the Eid (holiday in December). There are sheep in Gaza but they are more expensive than here," said Ramzi Abed, a Gazan father of 10. He dragged two sheep on a rope across the border and cradled a lamb in his arms.

Palestinian militants set off bombs on Wednesday and destroyed the Israeli-built southern border wall, a move that allowed ordinary Palestinians to cross a border that had been largely shut since June.

Israel, which defends its blockade of Hamas-controlled Gaza as intended to counter rocket fire by militants, said it wanted to cut its links with the coastal strip by handing the supply of electricity, water and medicine to others.

An Israeli security official said Egypt should take over responsibility for the territory, from which Israel pulled its troops and settlers in 2005 following 38 years of occupation.

Inside the dusty Egyptian town of Rafah, a normally quiet road was transformed into a crowded street market packed with vendors selling everything from cigarettes to sheep and motorcycles, with prices as much as double the norm.

"Here we sell Viagra," read a large sign posted at a tiny store in Rafah visited by Palestinian customers.