Eritrea said its forces had shot down two Ethiopian MiG-23 jet fighters and killed, wounded or captured more than 12,000 soldiers since the latest fighting began last Thursday on the Mereb-Setit front, near the contested Badme region.

Eritrean presidential adviser Yermane Gebremeskel said the two MiG-23s were downed Sunday and that there was ``very intense'' fighting in the area Monday.

Eritrean television showed new footage of what appeared to be an Ethiopian helicopter gunship being hit in mid-air and crashing in flames to the delight of Eritrean soldiers.

Ethiopia also said fighting was heavy Monday but disputed Eritrea's claims of military success and said it had the upper hand. ``In repelling enemy attacks, the Ethiopian Defense Forces inflicted heavy human and material losses on the Eritrean army,'' said government spokeswoman Selome Taddesse.

She denied that Ethiopia had lost two MiGs and said a total of 8,200 Eritreans had been killed, wounded or captured since the latest round of fighting began.

Both sides accused the other of firing the first shots and of deploying tens of thousands of troops in the area, but there was no way of verifying the claims.

The border war began in May 1998, when Eritrean forces took control of two sections of disputed border land, including the Badme region, in six weeks of fighting.

It flared again in February this year and Ethiopian forces then retook Badme. Tens of thousands of soldiers are believed to have died in the war between the two former allies.

Both sides have accepted a peace plan drawn up by the Organization of African Unity (OAU) but disagree over its details and implementation.

Eritrea gained independence from Ethiopia in 1993 after a 30-year independence struggle.

Intro: Heavy fighting continues along the disputed border between Ethiopia and Eritrea. Richard Engel reports from our East Africa bureau in Nairobi that both nations are reporting heavy causalities in what could be the last major battle before the rainy season begins next month.

Text: The governments of both Eritrea and Ethiopia report that about 20-thousand soldiers from both sides have been killed, wounded or captured during the past five days of fighting.

On Monday, Eritrea reported that its army shot down two of Ethiopia's Russian-made Mig-23 fighter jets in addition to an attack helicopter. A statement from the foreign ministry in Asmara said Eritrea also destroyed several Ethiopian tanks.

Both Eritrea and Ethiopia deny they initiated the latest round of fighting in the year-long border war between the two nations. The recent fighting is centered near the Badme region, where the war broke out in May 1998.

Ethiopia claims that Eritrea is trying to recapture the Badme area, which it was unable to hold during another period of heavy fighting last February. But Eritrea says it is defending itself from Ethiopian aggression.

The war between Ethiopia and Eritrea is shaping up to be one of the bloodiest conflicts of the 1990s. While there are no exact death tolls and independent confirmation of the fighting is difficult, most observers estimate that many tens of thousands of people have died in the fighting. Observers say there are several hundred thousand troops, tanks and pieces of artillery dug in along both sides of the front line.

Ethiopia and Eritrea were united until 1993. In fact, the presidents of the two nations fought together for more than 16 years against Ethiopia's former dictator. But the once allied rebels, who are now in charge of the governments is Addis Ababa and Asmara, later turned against each other. International and regional diplomatic efforts have failed to resolve the dispute.

Analysts say the recent battles between Eritrea and Ethiopia could be the result of a strategic choice by both sides to grab as much land as possible and dig in before the onset of the rainy season, which is expected to begin next month. (signed)

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14-JUN-99 8:04 am EDT (1204 UTC)

Source: Voice of America