JERUSALEM, March 17 (Reuters) - Israel accused the incoming Palestinian unity government on Saturday of endorsing the use of "terror" to achieve statehood and said it must be shunned.

"This policy guideline that we have seen this morning includes in it, specifically, the way to achieve a Palestinian state is through resistance. Resistance is terror. Nobody should get that one wrong," said Miri Eisin, spokeswoman for Israeli Prime Minister Ehud Olmert.

"We're not going to work with this government. This government does not recognise our existence, it does not recognise the treaties, and most important, does not in any way renounce terror," she said.

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