What was the Rabin's offer to Mubarak regarding Gaza?

Question

Shafiq Al-Hout in My Life in the PLO: The Inside Story of the Palestinian Struggle describes the following episode:

Our meetings had become more like social get-togethers than serious political debates, and were held in a different location from the operations room. I recall one occasion during a session, when I was sitting at one end of the table where it was permitted to smoke, and Abu Ammar was signing papers as usual. I started to ask those around me, Mahmoud Darwish, Abu Mazen, and Yasser Abed Rabbo: “If the Israeli delegation were to offer to withdraw from the Gaza Strip, what should our delegation do? Should we accept or refuse? And what would be the grounds for either decision?” Apparently, Abu Ammar’s auditory capabilities remained acute despite his being tied up with his paperwork, and he suddenly dropped the pen and shouted: “What are you saying?” I repeated my question. His tone became even sharper and he pounded on the table: “That’s a trap and I shall not fall into it! Remember that Rabin already offered Gaza to Mubarak, and he declined it. He told Rabin the last thing he needed was more Muslim Brotherhood members.” I asked: “So what will you say to our people? Will you tell them that we turned down the opportunity to lift the Occupation?” He was silent for a moment, but then continued: “No ... we’ll take it ... but through a third party, through the United Nations for example.” The discussion, if one can call it that, ended. Abu Ammar went back to his papers, and the rest of the colleagues remained as they were: silent, jovial, absent-minded, or distracted by the television!

(emphasis is mine)

The events happened sometime during post-Madrid negotiations between Israel, the US and PLO, and before the Oslo negotiations became public knowledge (apparently, Oslo negotiations were already ongoing during the exchange quoted, but al-Hout was not aware of them.)

What was the Rabin's offer to Mubarak regarding Gaza? Why would Palestinians think of rejecting it? Even if the Muslim Brotherhood posed a problem to Arafat (Hamas is an offshoot of the Brotherhood, opposing any negotiations with Israel) they are still Palestinians, who would be ruled by Arafat, if Gaza were handed to the PLO.

Answer 1

As the highlighted part of the quote noted, Rabin was willing to give Gaza back to Egypt. Egypt, however, was not interested in the return of dissident Muslim Brotherhood members (the forerunners of Hamas). From the Oslo negotiations of 1992

Although Rabin had made clear throughout the spring election campaign that he would pursue “land-for-peace” negotiations with Israel’s neighbors, the prime minister drew an even sharper line between himself and Yitzhak Shamir, his ultra-Zionist predecessor, on this fundamental question.

And

Concerning the populous but poor Gaza Strip, which Israel seized from Egypt in the 1967 Middle East War, Rabin said that Israel could not even give away that territory and that he wished it would slide quickly and quietly into the sea. “Try to give it back to the Egyptians, and they will say, ‘You are stuck with it,’ ” Rabin said. “I wish the Gaza Strip would sink into the water, but I cannot find for it such a solution.”

Answer 2

The objective of the Israel rulers - from the first one to the actual one - has always been "from the river to the sea", a chant israeli jews invented, not Palestinians, so is, they want to govern over all the territory is mentioned in the bible as "the promised land" of the jews. Or, as we know it, the West Bank.

They have no interest in Gaza. It was never part of old Israel or Judah. That's why Rabin was willing to give it to Egypt, and wished that it just didn't exist, or disappeared into the sea, and that's why Israel ended up retiring their troops from there. An offer of withdrawal from the Gaza Strip was "a trap" because it meant "we withdraw from the Gaza Strip (in exchange from the West Bank)". That was the reason then, and that was the reason when they actually did it:

[...] the disengagement [is] a cunning tactical maneuver designed to shore up Sharon's domestic popularity, deflect international pressure from Israel, and forestall any further withdrawals from the West Bank. (emphasis mine)

So basically Rabin was saying "we'll give you this absolutely worhtless stripe of land in exchange for your acknowledgment of our rights over the whole of the West Bank and Jerusalem". The Palestinians weren't inclined to play Esau's part on the farce, especially since the little print of the deal said that Israel withdrawal from Gaza wouldn't be a withdrawal at all.