Burkina to host talks on Ethiopia-Eritrea conflict

Reuters, Oct 26, 1998

OUAGADOUGOU, Oct 26 (Reuters) - President Blaise Compaore of Burkina Faso, current chairman of the Organisation of African Unity (OAU), said on Monday he would host a meeting in November to find a solution to the border conflict between Ethiopia and Eritrea.

The presidents of the two Horn of Africa countries will attend the mini-summit in Ouagadougou on November 7 and 8 with Compaore plus representatives from Djibouti and Zimbabwe, Compaore told a news conference.

The latter two countries plus Burkina Faso have been mandated by the OAU to find a solution to the conflict, which caused hundreds of deaths in May and June.


Ethiopian Deportees Seek Compensation from Eritrea

Reuters, Oct 27, 1998

ADDIS ABABA, Oct 27 (Reuters) - Four thousand Ethiopians expelled from Eritrea demanded compensation on Tuesday for confiscated property they say was worth nearly $3 million, the state-run Ethiopian News Agency reported.

The deportees, now in camps in Kombolcha about 350 km (220 miles) north of Addis Ababa, alleged that Eritrean authorities seized 479 houses and 53 shops before they were expelled, the agency said.

The Horn of Africa neighbours have been embroiled in a border conflict since May. Fighting subsided in mid-June but a war of words has continued with each side accusing the other of ill-treating its nationals.

The deportees, from the the Red Sea port of Assab, handed documents to the Ethiopian government to support their allegations, the agency added.

Ethiopia says more than 28,000 of its nationals have been expelled from Eritrea since May while Eritrea says 30,000 of its citizens have been sent back from Ethiopia.

Eritrea denies expulsions of Ethiopians, saying they have chosen to leave because they have lost their jobs since the conflict began.

"While the exact figures and the degree of coercion are disputed on both sides, it is clear that large numbers of people have been uprooted, repatriated and are now living in temporary shelter or with relatives, disorientated and angry," the United Nations Integrated Regional Information Network (IRIN) said in a report this week.

Ethiopia said it welcomed an announcement by the chairman of the Organisation of African Unity (OAU), Burkina Faso President Blaise Compaore, that he would chair a summit on November 7 and 8 aimed at resolving the conflict.

"Ethiopia hopes that the meeting will endorse a resolution by the OAU which calls for the withdrawal of Eritrean troops to positions held before May 6," government spokeswoman Selome Taddesse said.

The presidents of Burkina Faso, Djibouti and Zimbabwe have been asked by the OAU to try to end the dispute. Ethiopia says the OAU peace initiative is the only plan that could guarantee a negotiated solution.


Ethiopia-Growth Ethiopia Projects Eight Percent Growth for Fiscal 1998/99

By Ghion Hagos, PANA Staff Correspondent, Oct 27, 1998

ADDIS ABABA, Ethiopia (PANA, 10/27/98) - Ethiopia expects to achieve up to 8 percent economic during the current fiscal year ending in June 1999, according to Brook Debebe, vice-minister in the ministry of trade and industry.

With indicators showing "stability and with inflation rate well below four percent" at present, the country's economic growth this current fiscal year is expected to be in the range of between seven and eight percent, he said.

Addressing the Economic Society of Ethiopia last Friday, Brook cited the liberalization of the banking sector in August that removed restrictions on hard currency transactions by state and private commerical banks, as one of the measures the government had taken to help speed up economic growth.

He also disclosed that the government will soon introduce cuts in tariffs to spur growth, but gave no indications what these entail.

Brook stated that Ethiopia's import-export trade substantially increased after the country switched over to the port of Djibouti instead of the Eritrean Red sea ports of Assab and Massawa, few months before the border dispute with Eritrea erupted in May.

Ethiopia traditionally depended on the two Eritrean Red Sea ports until Asmara introduced its own currency, the nakfa, in October 1998, five years after its people voted in a referendum for independence and a final break with Ethiopia.

This created complications in terms of payment for their two-way trade, with Asmara demanding a par value of its nakfa with the Ethiopian birr.

Addis Ababa insisted that business transactions between them should be conducted in hard currency.



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