Background Note: In 1979 Uganda, led by the notorious dictator Idi Amin, invaded the disputed Kagera border district in Tanzania, claiming that it belonged to Uganda. Tanzania responded by driving Ugandan troops out of the occupied border district, and continuing all the way to Kampala to remove the Idi Amin regime. At this point, Idi Amin's good friend, Col. Moammar Gadhafi airlifted thousands of Libyan troops into Uganda. The Libyan troops were defeated and over 2,000 of them were captured. Idi Amin fled into exile in Saudi Arabia.

Yesterday, Mendefera was reported calm and Eritrean troops were in a "buoyant" mood. In contrast, an AP reporter in Keren reported a run on the banks as fear gripped the town. In Asmara, nonessential US staff have been ordered to evacuate.

A top Eritrean government official, Yemane Gebreab, today announced that Ethiopia was losing the war.

Update: Late today Ethiopia announced capture of Om Hager. Eritrean troops trapped in the Gash region are trying to escape to Sudan. Ethiopia also said that the airforce had taken out an anti-aircraft missile site near Mendefera. Regarding Mai Dima, Eritrea denied Ethiopia had captured it, but according to AFP Eritrea "admitted that Ethiopia may have sent reconnaissance missions to the area."

UN_IRIN: Two international airlines suspend flights: Egypt Air suspended from Thursday all flights to and from Asmara because of "war risk", airline personnel in Nairobi told IRIN. Air Kenya, which recently initiated a direct Nairobi-Asmara flight in its new regional service, has also suspended flights because of the war. Personnel in Nairobi confirmed to IRIN that civil aviation authorities had instructed the airline to suspend its flights until further notice. Diplomatic sources in Asmara said there have been large crowds of people outside the Lufthansa Airline office in Asmara.