Israelis have no cause to celebrate: Palestinian PM

RAMALLAH, West Bank (Reuters) - Palestinian Prime Minister Salam Fayyad said on Tuesday Israelis had no cause to celebrate their country's 60th anniversary while Palestinians continued to suffer under occupation.

"I say to the Israeli people in particular, how can you celebrate while the people of Palestine are groaning under your settlements, the crimes of your settlers, the siege of your state and the occupation practices of your army," Fayyad said in a speech.

The criticism was some of the strongest by Fayyad, a soft-spoken economist favored by Washington, since Palestinian President Mahmoud Abbas and Israeli Prime Minister Ehud Olmert began talks last November on creating a Palestinian state in the occupied West Bank and in the Gaza Strip.

Fayyad made the remarks to legislators and foreign diplomats in an address marking the "Nakba", or "catastrophe", when some 700,000 Palestinians fled or were expelled from their homes in fighting that raged around Israel's founding in 1948.

"Celebrations are meaningless unless we celebrate a just and durable peace together," Fayyad said.

Israel launched 60th anniversary festivities last week. U.S. President George W. Bush arrives in Israel on Wednesday to take part in the celebrations.

(Reporting by Mohammed Assadi and Ali Sawafta; Writing by Jeffrey Heller in Ramallah; Editing by Giles Elgood)