JERUSALEM. Dec 31: A leftwing Israeli peace group Tuesday called for a worldwide boycott of produce from Jewish settlements in the occupied territories. reports AFP.

In a move unprecedented in Israel, gush shalom. or the peace bloc, urged consumers around the world to boycott produce from settlements in the West Bank, the Gaza Strip and the Golan Heights, which Israel occupied in 1967.

'The boycott of settlements' produce is a legitimate means for those who are for peace and justice to fight against the settlements." the organization said in a statement. The investors will think twice before they risk boycott by a great part of tne public."

A petition in support of the boycott has already been signed by several opposition politicians. including Labour MP Yael Dayan.

But the initiative provoked an angry reaction from the Israeli government and settler ^tL peace block was playing the game of Israel's enemies who have been pushing for a UN boycott of settler products, a

foreign ministry spokesman told public radio.

"Any boycott at this critical time would be in contradiction to the spirit of the peace process." said Effi Ben Matityahu.

A settler spokesman said the boycott call was "anti-Semitic." it was reminiscent of the measures the Nazis took against Jewish products in the 1930s. Yehudit Tayar said.

But the boycott call was backed by Palestinian officials who said they hoped it would be heeded by the European Union.

"It's a commendable move. 1 hope the Israeli government has understood the message," said the Palestinian higher education minister, Hanan Asft/Swi

Israel exports around 30 million dollars worth of settler produce each year, mainly flowers, fruit and vegetables, and wines from the Golan Heights.

The call to boycott settler produce came as Israeli Prime Minister Benjamin Netanyahu offered significant new funds for settlers to obtain the support of far-right parties lor his embattled 1998 budget.