The world has pledged billions of dollars to help rebuild the war-torn Gaza Strip, an effort the West hopes will culminate in greater regional security and a revival of the peace process.

"Our response to today's crisis in Gaza cannot be separated from our broader efforts to achieve a comprehensive peace," U.S. Secretary of State Hillary Clinton said Monday at a one-day donor conference in the Egyptian resort of Sharm el-Sheik. "By providing humanitarian assistance to Gaza, we also aim to foster conditions in which a Palestinian state can be fully realized."

Washington has pledged some $900 million to help Gaza rise from the ashes of the three-week Israeli military offensive, a check topped only by the $1.65 billion promised by the oil-rich Gulf states. The European Union also chipped in significantly, promising some $550 million in aid.

Western leaders underlined their eagerness to keep the money from falling into the hands of Hamas, labeled a terrorist organization by the United States, the EU and Israel.

Washington aims to send most of the money directly to the Western-backed Palestinian Authority government headed by President Mahmoud Abbas; the rest will flow to the Gaza Strip via the United Nations and non-governmental organizations.

The greatest concern in Washington and European capitals is that Hamas, which controls the Gaza Strip, could divert money to rebuild militarily. Clinton said the United States would "install safeguards" to ensure that the money does not end up in the "wrong hands," an obvious reference to Hamas.

It was Clinton's first trip to the region in her new position, and she was busy meeting with officials from Middle Eastern countries before and during the summit.

Hands are wide open in the Gaza Strip, devastated by the Israeli offensive that killed an estimated 1,300 Palestinians and 13 Israelis. Abbas hoped to raise some $2.8 billion to rebuild infrastructure, close budget deficits and help the families who have lost loved ones. By Monday, pledges amounted to some $3.5 billion.

German Foreign Minister Frank-Walter Steinmeier, who had joined the summit with a pledge to spend an additional $125 million on top of the EU commitment, said the joint effort was desperately needed.

"It's been several weeks since the armed conflict, and there is still no stable situation around the Gaza Strip," he said. "The truce has not yet translated into a permanent cease-fire, and the humanitarian situation in Gaza is still not satisfactory."

Yet for the aid money to have a significant impact, Israel needs to open its borders with the Palestinian territories. Still, construction materials such as concrete and steel are not reaching Gaza, a situation that has the head of the United Nations worried.

"The situation at the border crossings is intolerable. Aid workers do not have access. Essential commodities cannot get in," Secretary-General Ban Ki-moon said Monday at the conference. "Our first and indispensable goal, therefore, is open crossings."

The West hopes the money can help restore normal life to Gaza and also to the Palestinian territories as a whole -- economically, socially and not least politically.

After the military defeat of Hamas in Gaza, the Islamist group agreed to hold Egyptian-brokered talks to form a unity government with Al Fatah to manage the postwar situation.

"Palestinians have no choice but to agree and reconcile," Abbas said Monday, only a few days after he had met with leaders from Hamas, who were not present at the conference.

Western observers want the Palestinian Authority to return to Gaza; they hope that a Palestinian "unity government" could help reform Hamas and increase political stability in the Palestinian territories, opening up the possibilities for new peace negotiations with Israel.

That won't be easy, however, with the new Israeli leader. Hawkish Prime Minister-designate Binyamin Netanyahu is not eager to offer significant concessions to the Palestinians and has previously spoken out against a Palestinian state.

French President Nicolas Sarkozy on Monday said he was eager to hold a peace summit in Europe this spring to establish a Palestinian state before the end of 2009.

That's in line with Clinton's goals, who said she would "vigorously" push for peace in the region. Her first steps will be made in the coming days, during a Middle East tour that will include stops in Israel and the West Bank.