British Foreign Secretary David Miliband arrives for two day visit

       British Foreign Secretary David Miliband arrives here on Sunday at the start of a Middle East trip that also takes in the Palestinian territories, Syria and Lebanon. The visit has been overshadowed by the diplomatic dispute over a proposal by Britain to clearly label all produce originating in West Bank settlements. In British shops, labels already mark West Bank produce, but London is now considering a new system that will specify produce that has been produced in settlements, as opposed to Palestinian areas of the West Bank. As a sign of displeasure over Israeli settlement activity, Britain recently circulated an internal EU note expressing concern that goods produced in settlements may be entering the country after being illegally exempted from tariffs, in violation of an Israel-EU trade agreement. London also separately called on the European Union to consider more stringent labeling rules for settlement-produced goods. Officials in Jerusalem have confirmed that Israeli leaders will make clear to Miliband Israel's firm opposition to the British labeling initiative during his discussions in Jerusalem. Israel interprets the British move as contradicting the spirit of Annapolis and specifically that all issues are to be determined in bilateral Israeli-Palestinian negotiations, which are still ongoing. One of the core issues being addressed in the negotiations is the question of borders, and Jerusalem interprets the British labeling idea as an attempt by a third party to influence the issue. During his two-day visit Miliband will meet with Prime Minister Ehud Olmert, his Israeli counterpart Tzipi Livni, Defense Minister Ehud Barak and Opposition leader, Likud chairman Binyamin Netanyahu. In Ramallah, the British Foreign secretary will hold talks with PA President Mahmoud Abbas and Prime Minister Salaam Fayad. (08,26)