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Nation & World

BC-ML--Israel-Palestinians

RAMALLAH, West Bank (AP) — The Palestinian premier is calling on his people to boycott Israeli products.

Palestinian Prime Minister Salaam Fayyad told reporters Sunday the boycott is to protest Israel's withholding of funds to the cash-strapped Palestinian Authority.

Israel is holding $100 million in taxes it normally transfers to the Palestinians. It cut off the funds after the Palestinians won upgraded recognition at the United Nations last month. Israel says the move undermines negotiations.

The Palestinian Authority uses the money to pay salaries to its tens of thousands of civil servants and security forces. Israel says it is using the money to pay down debts owed to Israel.

Israeli Foreign Ministry spokesman Yigal Palmor said the Palestinians should "concentrate efforts on how to build their own economy, not how to boycott someone else's."

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