"The Ethiopian defence forces repelled successfully military attacks launched by the Eritrean army on October 23 and October 24 at the left wing of the Badme front in the general vicinity of the Jerbert River.

"Three hundred thirty-five Eritrean soldiers were killed or wounded during the two days of battle," according to a statement released by the office of the Ethiopian goverment spokesperson.

The statement said the attack began Sunday at 7:00 p.m. (1600 GMT) and that fighting continued until 2:00 a.m. Monday (2300 GMT Sunday).

On Monday, the Eritrean government said it was committed to exercising maximum restraint to avoid further hostilities with Ethiopia, although it added that it reserved the right to act in self-defence.

No independent confirmation of the fighting was available.

The reports emerged as Ahmed Ouyahia, the special envoy of the Organisation of African Unity (OAU), which has led efforts to resolve the conflict, was due in Asmara to push forward with an OAU initiative.

Ouyahia was travelling from Addis Ababa, where he had met Prime Minister Meles Zenawi and Foreign Minister Seyoum Mesfin.

Both sides have reportedly built up troop levels in recent weeks along the border. They have also exchanged numerous official statements accusing each other of bad faith and of preparing a major offensive.

No major battles have been reported since early September when Ethiopia accused Eritrea of having attacked its positions along the central front of Zala Anbesa, charges Asmara denied.

The OAU peace plan has run aground over a detailed document called the Technical Arrangements for the implementation of a framework accord.

``Obviously, possibilities of conflict erupting again are there,'' he said in an interview with Reuters late on Tuesday. ``If peaceful means are not available, we reserve the right to defend ourselves.''

Meles said Ethiopia had agreed to two peace plans drawn up by the Organisation of African Unity (OAU) but could not agree to a final one because it reneged on earlier agreements to restore border territory seized by Eritrea in May 1998.

Eritrea has accepted the latest OAU proposals in full, but Ethiopia is suspicious of Eritrea's interpretation of the document.

The two countries first came to blows in May 1998 over a triangle of land near Badme on their remote border.

The conflict soon spread to other areas of the frontier resulting in tens of thousands of casualties on both sides and an air war with raids on cities in both countries.

``The OAU has proved Eritrea occupied our territory,'' Meles said. ``Until and unless they withdraw from all these territories we remain victims of aggression with the right to defend ourselves.''

The original OAU agreement sought to establish a peacekeeping mission in the disputed territories and was agreed to by both countries.

ETHIOPIAN SOVEREIGNTY NOT RECOGNISED

Eritrea maintains that while Ethiopia may well have been administering certain territories, it did so illegally. It has agreed to leave certain disputed areas, but says ownership must be resolved before either party is allowed to resume occupation.

``We are not saying the OAU should give us perpetual guarantees that those areas that have been occupied by Eritrea will be Ethiopia's forever,'' Meles said.

``What we are saying is the first crucial step is that the invasion should be reversed. Once it is reversed then the issue of demarcation comes.''

Eritrea also accuses Ethiopia of occupying land which was previously Eritrean, a charge Addis Ababa denies. Meles said he had held talks on the crisis on Sunday with OAU Secretary-General Salim Ahmed Salim and had outlined the problems from an Ethiopian perspective.

Meles said the Ethiopian government has been able to limit the economic impact of the war through sensible macroeconomic reforms undertaken over the last few years but the country had still been hurt by the financial cost.

They are looking into the status of co-operation accords in the political, economic and social fields and the implementation problems encountered.

Ethiopia's increased utilisation of the Red Sea port of Djibouti, since the eruption of the border conflict with Eritrea 18 months ago, is also on the agenda.

Ethiopian News Agency reported Tuesday that this message was conveyed Monday by Prime Minister Meles Zenawi during separate audiences with an envoy of Algerian President Abdelaziz Boutieflika, the current OAU chairman, and the UN under-secretary general, Louise Frechette.

The agency said that during talks with the Algerian envoy, Ahmed Ouyahia, Meles had stated that the technical arrangements "do not guarantee, among others, the return of the status quo ante."

But he reiterated his country's commitment to continue "constructive dialogue" with the OAU to resolve the border conflict.

Meles observed that it was the "technical arrangements" that were hindering the implementation of the framework accord.

The technical arrangements being doubted by Addis Ababa were worked out by experts from the OAU, UN and US, and were approved by the OAU summit in Algiers in July.

Ethiopia had sought and received clarifications from the OAU on some of the points in the "technical arrangements" but it still considers them unsatisfactory.

The agency said Meles also told Frechette that his government had asked for clarifications "because the technical arrangements were inconsistent with the framework agreement."

He further informed her that Ethiopia "desires a genuine document based on the framework agreement and the modalities for the implementation of the cardinal element of the peace agreement."

He also complained to Frechette that the UN was giving "minimal" consideration to the various conflicts raging in Africa.

He urged the world body to support regional organisations to settle the crises peacefully. Frechette reiterated the UN's support for the OAU's efforts for a peaceful solution to the Ethiopia-Eritrean border conflict.

"We don't have enough tents, and those we have won't last," relief worker Gebretensai Gebremichael told AFP during a visit to the camp, located 260 kilometers (160 miles) west of Asmara.

"Even worse, the dark blue tents are extremely hot when the sun is beating down on them. Just imagine a family living in the tent when it's 42 degrees out," he continued.

"I don't know why they send these tents here, but you don't see them in Kosovo, you don't see them in Albania. These are for the poor," he said bitterly.

Twenty-one thousand people flooded into Adi Keshi when fighting reignited last February at the Badame front along the Ethiopian-Eritrean border.

About 90 percent of them have been displaced because of the war. Five percent are Eritreans deported from Ethiopia and another five percent are Ethiopians.

Whether Eritrean or Ethiopian, all the war displaced at Adi Keshi receive the same meager rations.

Gebretensai pores over the ration books from the administration hut, the walls of which are lined with grain sacks: "Rice: Gift of the People of Italy", "US Soft Wheat," and "Swedish Relief".

Donations have been sparse. Eritrean Relief and Refugee Commission recently reported only 25 percent of the necessary funds have been pledged to Eritrea this year and only half of that has arrived.

At Adi Keshi, a two-month ration per person includes 15 kilos of sorghum, 7.5 kilos of rice, 1.5 liters of cooking oil, and three kilos of lentils.

There is also high protein powder which is made into biscuits for children.

"There is not enough food. We have constant shortages of sugar, tea, soap, and any kind of produce," Gebretensai explained.

Little of the arable land in this densely populated area is available to camp residents.

Four months ago the Red Cross delivered 20,000 liters of kerosene for 21,000 people. Today there is no kerosene left.

Without kerosene, the people use wood for cooking. Deforestation is already a major problem in Eritrea. "What choice do they have?" asked Gebretensai.

With the onset of colder weather, relief workers worry about a serious shortage of blankets and are currently only able to supply one per family.

The quality of recent shipments has been so bad that people say within three months there is nothing left but shreds of wool.

Nearby at the camp clinic, nurse Emmanuel Gernatzien explained malnutrition and diarrhea are the biggest problems.

He gives talks on proper handling of food and sanitation to the residents, but looking towards the pharmacy tent, he said his biggest worry was a severe shortage of pediatric drugs.

Sanitation and water have improved. Eight toilets are being built and a water container was set up on a hill along with seven water stations and pumps feeding into wells.

Eritrean relief workers have set up training programs to combat the tedium of camp life, which often results in depression and hopelessness.

At a nearby tent, 15 women busily practice stitching garments out of paper as a sewing teacher, also displaced, teaches the finer points of dressmaking using several donated sewing machines.

Registration for a new primary school recently began with classes scheduled to begin in the next few weeks.

Adi Keshi is just one of the many displacement camps that sprang up after Ethiopia and Eritrea went to war last year. The war has left tens of thousands dead and hundreds of thousands displaced