DATE=8/2/98 TYPE=CORRESPONDENT REPORT NUMBER=2-236392 TITLE=ETHIOPIA/ERITREA (S ONLY) BYLINE=SCOTT STEARNS DATELINE=NAIROBI CONTENT= VOICED AT: INTRO: FOREIGN MINISTERS FROM ETHIOPIA AND ERITREA MET SEPARATELY WITH AFRICAN DIPLOMATS TO TRY TO RESOLVE THEIR TWO-MONTH BORDER WAR. AS VOA'S SCOTT STEARNS REPORTS, BOTH SIDES APPEAR UNWILLING TO MAKE FURTHER CONCESSIONS. TEXT: THE FOREIGN MINISTERS MET SEPARATELY IN BURKINA FASO AS PART OF MEDIATION EFFORTS SPONSORED BY THE ORGANIZATION OF AFRICAN UNITY. DIPLOMATS FROM BURKINA FASO, ZIMBABWE, AND DJIBOUTI ARE TRYING TO COME UP WITH RECOMMENDATIONS FOR A HEADS OF STATE SUMMIT ON THE BORDER WAR. ERITREA'S FOREIGN MINISTER SAYS HIS GOVERNMENT IS READY FOR AN UNCONDITIONAL CEASEFIRE AND UNCONDITIONAL TALKS ON DISPUTED BORDER AREAS. ETHIOPIA'S FOREIGN MINISTER SAYS THERE WILL BE NO FACE-TO-FACE TALKS UNLESS ERITREAN TROOPS FIRST WITHDRAW FROM THE BORDER TOWN OF BADAME. BADAME HAS BEEN THE BIGGEST STUMBLING BLOCK OVER THE LAST TWO MONTHS AND THERE HAS BEEN LITTLE PROGRESS IN GETTING THE TWO SIDES TO AGREE ABOUT IT. ERITREA SAYS IT WILL NOT WITHDRAW UNTIL TALKS ARE UNDERWAY. ETHIOPIA SAYS IT WILL NOT NEGOTIATE WHILE PARTS OF ITS TERRITORY ARE OCCUPIED. (SIGNED) NEB/SS/DW/PLM 02-Aug-98 6:41 AM EDT (1041 UTC) NNNN Source: Voice of America