/// EDS: RE-ISSUING CR 2-254445 WITH REVISED INTRO, TO CLARIFY 
                    TIMING OF CASUALTIES ///

INTRO:  THE LATEST ROUND OF FIGHTING IN THE BORDER WAR BETWEEN 
ETHIOPIA AND ERITREA HAS KILLED AT LEAST 12 CIVILIANS (SINCE 
WEDNESDAY), ACCORDING TO REPORTS FROM THE FRONT LINES.  IN ADDIS 
ABABA, V-O-A'S SCOTT STEARNS REPORTS THE TWO SIDES EXCHANGED 
ARTILLERY FIRE EARLY FRIDAY ACROSS THEIR ROCKY BORDER.

TEXT:  ETHIOPIA SAYS IT WAS A NIGHT OF HEAVY SHELLING AROUND THE 
ERITREAN-HELD BORDER TOWN OF ZALAMBESA.

ETHIOPIA SAYS ERITREAN FIELD GUNS OPENED-FIRE ON ETHIOPIAN 
POSITIONS IN THE HILLS SOUTH OF TOWN.  IT SAYS ETHIOPIAN 
ARTILLERY RESPONDED, POUNDING ERITREAN TRENCHES IN THE VALLEY 
BELOW.

THERE WERE  NO  REPORTS OF CASUALTIES ON THE ETHIOPIAN SIDE.  
ERITREA SAYS 12 CIVILIANS WERE KILLED AND MORE THAN 20 WOUNDED IN
ZALAMBESA.

THE SHELLING OPENS A THIRD FRONT IN THIS LATEST-ROUND OF 
FIGHTING.  OVER THE PAST WEEK, MOST OF THE COMBAT HAS BEEN 
CONFINED TO THE HILLS AROUND THE ERITREAN-HELD TOWN OF BADAME AND
100 KILOMETERS FARTHER EAST ON THE TSORONA FRONT.

FIGHTING CONTINUES IN BOTH THOSE AREAS, ALTHOUGH CONSIDERABLY 
LESS THAN A WEEK AGO.

ETHIOPIA SAYS IT HAS NOW COMPLETED THE FIRST PHASE OF WHAT IT 
CALLS ITS COUNTER-OFFENSIVE, REGAINING GROUND IT SAYS IS 
ESSENTIAL FOR UPCOMING MISSIONS.  ETHIOPIA CLAIMS CONTROL OF A 
KEY MILITARY POST AT GEZA GERLASE NEAR BADAME AND THE VILLAGES OF
KONIN AND KONITO ON THE TSORONA FRONT.

THOSE AREAS WERE CAPTURED BY ERITREAN TROOPS WHEN THE WAR BEGAN 
LAST MAY.  AFTER GIVING REGIONAL PEACE EFFORTS A TRY, ETHIOPIAN 
FOREIGN MINISTER SEYOUM MESFIN SAYS THE TIME HAS COME TO RESTORE 
ETHIOPIAN CONTROL OVER ETHIOPIAN TERRITORY.

                      ///  SEYOUM ACT  ///

         THE ETHIOPIAN ARMY IS SUCCESSFULLY CONTINUING TO OCCUPY 
         MORE GROUND ON THE GROUND.  FIGHTING IS CONTINUING.  I 
         HAVE  NO  DOUBT THAT VICTORY ULTIMATELY WILL BE THAT OF 
         THE ETHIOPIAN PEOPLE AND THE ETHIOPIAN ARMY.

                        ///  END ACT  ///

THERE WILL  NOT  BE A MILITARY VICTORY, ACCORDING TO DIPLOMATS; 
BOTH SIDES ARE TOO EVENLY MATCHED TO ELIMINATE THE OTHER.  NO  
MATTER HOW LONG THE FIGHTING CONTINUES, DIPLOMATS SAY ETHIOPIA 
AND ERITREA MUST EVENTUALLY RETURN TO TALK OF ARBITRATION.

THE ORGANIZATION OF AFRICAN UNITY HAS COME UP WITH A PLAN TO 
SETTLE THE BORDER DISPUTES.  ETHIOPIA HAS ACCEPTED.  ERITREA HAS 
RAISED SOME QUESTIONS ABOUT THE PLAN, BUT HAS  NOT  YET GIVEN ITS
FINAL RESPONSE. 

ERITREA WANTS INTERNATIONAL MONITORS IN DISPUTED AREAS BEFORE 
WITHDRAWING ITS FORCES.  ETHIOPIA WANTS THOSE TROOPS OUT AND 
LOCAL ETHIOPIAN AUTHORITY RESTORED BEFORE ANY FORMAL PEACE TALKS.

O-A-U SECRETARY GENERAL SALIM AHMED SALIM IS TRYING TO NEGOTIATE 
A CEASEFIRE.  SO FAR, BOTH SIDES LOOK SET TO CONTINUE THE FIGHT.

MILITARY OBSERVERS SAY A UNITED NATIONS ARMS EMBARGO WILL HAVE 
LITTLE IMMEDIATE IMPACT ON TWO ARMIES WHO HAVE SPENT THE PAST 
EIGHT MONTHS REINFORCING POSITIONS ALONG THEIR 800-KILOMETER 
BORDER WITH ARMS BOUGHT FROM RUSSIA, BULGARIA, AND THE UKRAINE.  
(SIGNED)

NEB/SKS/JWH/KL

12-Feb-99 8:58 PM EST (0158 UTC)
NNNN
Source: Voice of America

Both Ethiopia and Eritrea continue to reject calls by the UN Security Council for an immediate cessation of hostilities, although there has been a significant halt in heavy fighting for the past few days. On Friday, the Ethiopian government asked its people to celebrate military victories on the front line, claiming to have pushed back Eritrean forces. But Eritrea has similarly claimed initial victory, widely publishing pictures from its defensive positions in the trenches.

A lull in the fighting has created space for a renewed diplomatic effort, with the US reportedly planning to send representatives from Washington next week. The battle of words remains intense. Eritrea accused Ethiopia yesterday of killing a dozen civilians in shelling on villages near the disputed town of Zalambessa, a centre of fighting in their new border war. Ethiopia said it was gaining ground and would not stop fighting until it regained the contested territory.

Both sides claim the other is responsible for starting the conflict, although Ethiopia recently accepted it broke the air moratorium last Friday, and apologised for the death of civilians in a bombing raid on Tuesday. Eritrea refuses to withdraw from the 1,000 sq km disputed area of land, a crucial condition of a brokered peace plan in November, under the Organisation of African Unity (OAU).

A special UN representative, Mohamed Sahnoun, warned this week - having returned from fruitless talks with the two leaders - that Africa was facing its first "hi-tech war". Both sides have stockpiled an enormous amount of sophisticated weaponry, making a mockery of the arms embargo threatened by the international community.

Although the guns are quiet, there is an uneasy wait for war in the Eritrean capital. It is seen as inevitable. Windows in some offices have been covered with a shatter-proof lining; non-essential international staff are being evacuated; and the US government has issued a warning for all Americans to get out of the two capitals. Two US warships with about 1,500 marines, helicopters and jets, are on stand-by off the Horn of Africa. "It's 50-50," said one diplomat, reflecting speculation over an imminent air strike by Ethiopia.

The Eritreans themselves - after a 30-year struggle for independence - are so acclimatised to war that its threat almost ensures a sense of normality. Traffic continues, businesses stay open and children are in the classroom.

But up to 50km from the southern front-line in Badme, Tsoronna and Zel Ambessa, civilians are fleeing with their goats, donkeys and camels. For some, it is too late. In Mendefra Hospital, eight-year-old Tigist Hagos is supported on the bed by her father - her legs and hands ripped by shrapnel. She was at a wedding in Adi Quale when it was bombarded.

Isaias Afwerki told Associated Press Television News that he thought the war would not last much longer, "maybe only a couple of days." Earlier Friday, he told a crowd of 500 people in the Red Sea port of Massawa that he wanted peace with Ethiopia.

"We tried all peaceful means to solve the conflict, but if we are attacked, we will defend ourselves," Isaias said. "We don't want to advance. But we will defend our positions."

There were no reports of significant fighting Friday, marking the third day of a lull since a new round of fighting erupted Feb. 6.

Eritrea fought a 30-year war against Ethiopia and gained its independence in 1993, but the 600-mile border between the two countries was never officially declared. Tensions have been high since last May, when 1,000 people were killed in fierce fighting over disputed areas.

President Clinton has been involved in trying to halt the fighting and persuade the two Horn of Africa neighbors to peaceably settle their dispute, assistant Secretary of State Susan Rice said late Thursday.

Eritrea welcomed Clinton's help.

"If there is more interest at high levels of authority, it is encouraging," Eritrean presidential spokesman Yemane Gebremeskel said Friday.

The European Union demanded Ethiopia and Eritrea call an immediate and unconditional ceasefire. An EU delegation was expected to visit the region next week.

The Ethiopian government, meanwhile, released casualty figures Friday claiming that 7,000 Eritreans had been killed and six of their tanks destroyed. The Ethiopians did not say what their own casualties were.

In any case, the figures -- which could not be independently confirmed -- contrasted sharply with reports from journalists in the area, who have seen no signs of mass killings, graves or large-scale mourning in Eritrea.

Earlier, Eritrea warned Ethiopia against using its air force in their border war, saying it would retaliate with its own aircraft.

It also said that it would consider foreign pilots and technical staff enrolled in the Ethiopian forces as mercenaries who would not be treated as prisoners of war if captured.

"Eritrea has not conducted any air strike and has not violated the moratorium on air strikes" which was signed in June last year, a communique said. "However it reserves the right to retaliate if attacked by air."

Friday's shelling, which could not be independently confirmed, followed a two-day lull in the fighting, according to Eritrean officials.

An Eritrean spokesman had earlier on Friday said that the front was quiet.

The two sides have ignored international pressure for an immediate ceasefire and although fighting has eased in the last three days, neither has given any indication of being ready to compromise or silence their guns.

Ethiopian government spokeswoman Selome Taddesse said there were limited skirmishes along the border on Friday but claimed Ethiopia was holding onto gains made earlier in the week.

"The sovereignty and territorial integrity of Ethiopia is being restored," she said. "Ethiopia does not want anything more beyond reclaiming its invaded land and it will not accept anything less."

The European Union on Thursday joined the international chorus calling for an immediate end to hostilities. Earlier this week, the U.N. Security Council also urged all countries to halt the sale of arms and munitions to Ethiopia and Eritrea.

But with each side blaming each other for the border war, neither has shown any sign of folding to diplomatic pressure.

"Eritrea did not start the war and consequently cannot be held responsible for it," the Eritrean foreign ministry said in a statement late on Thursday.

"Eritrea reaffirms its commitment not to start war. On the other hand, it must be recognised that it has and shall exercise the legitimate right of self-defense," it said.

Eritrea says it has simply defended its positions from Ethiopian offensives and claims to have inflicted heavy casualties in beating back the attacks.

Hundreds of soldiers and a handful of civilians are thought to have died since fierce fighting resumed on Saturday after an eight-month lull, with ground troops backed by air power and heavy artillery along the rocky and mountainous frontier.

The United States urged its citizens to leave both countries on Thursday, fearing that the antagonists might strike each other's capitals.

"The conflict could expand without warning and significantly affect areas of both countries beyond the immediate border region, including major urban centres," the U.S. State Department warned in a statement.

It ordered all non-essential U.S. embassy employees and family members to leave both Ethiopia and Eritrea.

William Clarke, the U.S. ambassador to Eritrea, told Reuters he believed there was "a real prospect for continued fighting."

The first round of the border war erupted last May and Eritrea occupied the contested Badme region as well as another pocket of land along the frontier. Fighting died down in June but reignited last Saturday and has spread to two fronts.

Both sides used the lull to rearm and have large, well-equipped armies despite their small economies.

Eritrea gained independence from Ethiopia in May 1993 after a referendum. Ethiopia supported the move and the two countries were allies until last May.