Eritrea said it had destroyed 31 Ethiopian tanks and shot down a helicopter in two days of heavy fighting at the Badme front. Ethiopia denied the claims, saying its forces had inflicted heavy casualties and destroyed Eritrean military equipment.

Eritrean government spokesman Yermane Gebremeskel told Reuters Eritrean forces downed a Mi-24 attack helicopter Wednesday, destroyed 22 tanks and captured one other.

Tuesday, nine Ethiopian tanks were destroyed and two captured, he said.

Residents of the Eritrean capital Asmara honked their car horns when the military successes were announced on state radio.

In the Ethiopian capital Addis Ababa, government spokeswoman Selome Taddesse said the Eritrean claims were false.

``The Ethiopian air force and ground forces inflicted heavy and sustained casualties on the Eritrean army in terms of military personnel and equipment,'' Taddesse said.

Ethiopia launched a ground offensive Tuesday along the Mereb-Setit front near Badme in an attempt to recapture land occupied by Eritrea last May. The thrust was preceded by a day-long artillery barrage and backed by Ethiopian warplanes.

Both sides said fighting continued into Wednesday evening.

Fighting on two other fronts east of Badme died down by Wednesday, leaving Badme the only focus of the conflict, according to Yermane.

He gave no details of casualties, though Eritrean radio earlier said it believed Ethiopian casualties were very heavy.

Badme is about 105 miles southwest of Asmara and 405 miles northwest of Addis Ababa.

A ground and air war between the two former allies erupted last May and lasted around six weeks. It resumed at Badme on Feb. 6 and spread to Tsorona and Bure, southwest of the Red Sea port of Assab, before appearing to die down.

Efforts to find a peaceful solution to the conflict, led by the United States and the Organization of African Unity (OAU), have so far failed.

Ethiopia denied U.S. charges that its air force targeted economic sites and civilian populations in violation of an air moratorium agreed last June.

``This is as false as it is unjustified,'' Ethiopia's foreign ministry said in a statement.

The Foreign Ministry said the U.S. should have focused its attention on Eritrea's failure to accept the OAU peace plan which calls on it to withdraw from Ethiopian territory.

Eritrea gained independence from Ethiopia, with Ethiopian blessing, in May 1993 after a referendum.

Ethiopia launched a ground offensive Tuesday along the Mereb-Setit front near Badme in an attempt to recapture land occupied by Eritrea last May. The thrust was preceded by a day-long artillery barrage and backed by Ethiopian warplanes.

``There is very intense fighting all along the Mereb-Setit front,'' Eritrean government spokesman Yermane Gebremeskel told Reuters in the capital Asmara Wednesday.

Initial fighting on two other fronts east of Badme died down by Wednesday, leaving Badme the only focus of the conflict, according to Yermane.

He said the Badme front stretched for around 60 km (37 miles). He gave no details of casualties, though Eritrean radio earlier said it expected Ethiopian casualties were very heavy.

There was no comment from Ethiopian authorities.

Badme is around 170 km (105 miles) southwest of Asmara and 650 km (405 miles) northwest of the Ethiopian capital Addis Ababa.

A ground and air war between the two former allies erupted last May and lasted around six weeks. It resumed at Badme on February 6 and spread to Tsorona and Bure, southwest of the Red Sea port of Assab, before appearing to die down.

Efforts to find a peaceful solution to the conflict, led by the United States and the Organization of African Unity (OAU), have so far failed.

Ethiopia denied U.S. charges that its airforce targeted economic sites and civilian populations in violation of an air moratorium agreed last June.

``This is as false as it is unjustified,'' Ethiopia's foreign ministry said in a statement.

The foreign ministry said the U.S. should have focused its attention on Eritrea's failure to accept the OAU peace plan which calls on it to withdraw from Ethiopian territory.

``The talk about air moratorium at a time when a full-scale war is raging and when, because of Eritrean aggression and intransigence, two armies are throwing at each other whatever they have with the expected human consequences...is amazingly naive,'' the statement said.

Eritrea gained independence from Ethiopia, with Ethiopian blessing, in May 1993 after a referendum.