RAMALLAH, West Bank, May 27 (Mohammed Assadi - Reuters) - Palestinian Prime Minister Salam Fayyad passed out leaflets on Thursday urging consumers to boycott products made by Jewish settlements built on occupied West Bank land.

Fayyad, dressed in a t-shirt, was wrapping up a week-long drive to clean the Palestinian market of settler goods that he says undermine the home economy. He handed out leaflets bearing the names and pictures of 500 items on the black list of his Palestinian Authority, from peanuts to door frames.

About 3,000 volunteers have visited more than 255,000 Palestinian homes all over the West Bank to help householders differentiate between settler products, and goods made in Israel proper that the campaign does not target.

I came today as a volunteer in the home-to-home campaign, Fayyad told a Palestinian family in Ramallah. This campaign depends in the first place on the awareness of the citizen.

Palestinian officials estimate that settlers sell goods worth some $500 million into the Palestinian market.

The aim of the boycott, said Fayyad, is to get rid of settlement products by the end of this year and replace them with Palestinian goods, thereby creating much-needed jobs. Palestinians want to stop Jewish settlers prospering from a trade that depends on Israeli occupation. Many settlements are industrial zones built on land Israel occupied in 1967 that the Palestinians seek for a state.

LEGITIMATE TACTICS
The boycott is part of a broader strategy of popular resistance, including peaceful protest.
The Palestinian Authority has also told Palestinians it will be illegal for them to accept employment in the settlements from the end of this year.

Labour Minister Ahmad Majdalani told Reuters that Arab and Islamic countries are helping Fayyad's government raise $50 million to help the private sector find jobs for Palestinians who used to work in Jewish settlements.

Israel and the Palestinians resumed indirect peace talks this month after nearly a year and a half without negotiations. But the Israelis are annoyed by the boycott and other Palestinian tactics that they see as illegitimate.

Speaking in Paris on Thursday, Israeli Prime Minister Benjamin Netanyahu said he was not happy with this economic and political warfare.
Fayyad said Palestinians were within their rights not to buy settler goods.
What we are doing is nothing that is inconsistent with international law.