(Repeats item first filed on Dec 12, no changes to text)

By Rebecca Harrison

BETHLEHEM, West Bank, Dec 12 (Reuters) - Tawfiq Salsaa's olive wood nativity scene looks like thousands of others sold to pilgrims in Bethlehem at Christmas. Except in his version, a wall separates the baby Jesus from the three wise men.

"I wanted to give the world an idea of how we live in the Holy Land," the 65-year-old Palestinian carpenter said in his workshop, his sweater speckled with sawdust.

"I was inspired by our own wall."

Salsaa has sold almost 400 of his hand-carved nativity scenes caricaturing Israel's West Bank barrier -- a hated symbol of occupation for Palestinians. They have gone to churches and individuals through a British-based charity and advocacy group.

With his carvings, Salsaa aims to chip away at a sentimental image of Bethlehem portrayed in Christmas cards and carols worldwide to show the hardships faced by Palestinians today in the town revered as the birthplace of Jesus 2,000 years ago.

Modern Bethlehem is encircled by checkpoints and Israeli walls and fences built on Arab land on a line that Palestinians say obstructs the possibility of them establishing a viable state and stifles the economy. Israel says it needs the barrier to keep suicide bombers out of its cities.

Tourism to Bethlehem, a mixed Muslim and Christian town, virtually dried up during the second Palestinian uprising, which started in 2000. It is slowly recovering, but residents say intimidating Israeli security doesn't help.

Visitors to Bethlehem -- the West Bank's top tourist attraction -- must clear military security before passing through the barrier. A sign reading "Peace Be With You" hangs from a high concrete wall next to an army watchtower.

Tony Blair, the former British prime minister who is now the international envoy to the Palestinians, spent the night in a hotel in Bethlehem on Tuesday as part of his effort to encourage Western tourists to stay in the city.

Noting the Bible story of Mary and Joseph's flight from Bethlehem with their infant son, Salsaa said: "I was thinking about how Jesus escaped from here 2000 years ago.

"It wouldn't be so easy now."

British NGO Amos Trust said it was selling the nativity scenes online as part of a broader campaign that includes publishing alternative Christmas carols such as "At the Army Checkpoint" to the tune of "In the Bleak Mid Winter".

"We don't want anyone singing 'O Little Town of Bethlehem' this Christmas without people realising what's happening there," Garth Hewitt, director of the Amos Trust, told Reuters.

And what if Palestinian and Israeli negotiators manage to broker a deal on peace? Salsaa has made his "barrier" detachable. (Editing by Alastair Macdonald)

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