Shewaferaw Girma, the General Manager of state-owned Ethiopia Sugar Industry Support Centre told Reuters sugar exports would be made possible by the opening of the country's fourth factory earlier this year. Exports are expected to earn the country $22 million.

Total production from the four coffee estates is projected to reach 275,000 tonnes in the 1999/2000 (July/June) season from around 175,000 tonnes last season.

Most of the increment will come from the new sugar factory at Finchaa in western Ethiopia, which is expected to produce 85,000 tonnes of sugar annually. The remainder will come from small increases in production at other estates and stockpiled sugar, officials said.

Revenues rose to $18 million from $14 million in 1997/98.

Nasser Ahmed of the National Lowland Cereals Research Office said haricot bean exports had steadily risen market liberalisation in 1995. He said Ethiopia exported 20,000 tonnes of haricot beans in 1995/96 valued at $12 million and 25,000 tonnes worth $13 million in 1996/97.

Nasser said Ethiopia had embarked on wide-ranging extension programmes to encourage peasant farmers to grow haricot beans in a bid to ease heavy dependency on coffee as their main export crop.

Coffee accounts for over 60 percent of Ethiopia's annual foreign currency earnings and the country exported 103,000 tonnes in 1998/99 and earned $319.3 million.

Nasser said Ethiopia hoped farmers would diversify from traditional crops such as maize, barley and wheat to grow other cash crops.

"I am not optimistic, but if the international community exerts serious pressure, there is a slim hope for peace," said Tesfai Ghernazien, Eritrean foreign ministry permanent secretary.

Diplomats in Asmara are also pessimistic, although negotiations with Ethiopia are reportedly continuing behind closed doors.

"The Americans tell us arguments raised by Ethiopia are becoming more realistic, that they are lowering the tone of their statements," said Eritrean presidential spokesman Yemane Ghebremeskel.

"To us it is clear. Ethiopia is not okay with the basics of the peace process."

Eritrea has agreed to the technical arrangements for implementing the accord drawn up by the Organisation of African Unity (OAU), but Ethiopia has not, describing them as unsatisfactory.

"Ethiopia is stalling to buy time to launch another large scale offensive," accused Tesfai.

"It has become clear to the international community that for Ethiopia this is not a border issue," Tesfai added, citing recent statements by high level Ethiopian politicians which he said proved Ethiopia wanted to install a "puppet regime" in Asmara.

"Officially, Ethiopia says it is a border war, so the international community is still trying to tackle the problem that way," explained the Eritrean official.

"The OAU has done what it can," he continued, referring to the accord and frequent shuttle diplomacy between Asmara and Addis Ababa.

"Now it is for the United States, European Union, the United Nations and also Asian counties, such as China and Japan to help end the conflict," he said.

Together with Rwanda, the United States was behind earlier initiatives to end the war, which broke out in May 1998, and Washington has contributed to the current efforts.

The World Bank recently announced it would not fund future projects in either country if fighting continued.

Tesfai argued the move was unfair. "If we were the ones obstructing peace, then fine, but that is not the case. We have signed, Ethiopia has not," said the foreign ministry official, adding the World Bank's announcement might still be of some help since Ethiopia was more dependent on foreign aid than Eritrea.

"But the World Bank is not enough. What we need is for the World Bank to step forward along with others," he said.

Meanwhile, an estimated 500,000 to 600,000 troops face each other across the 1,000-kilometer (600-mile) border, as each side accuses the other of mobilising soldiers and military hardware for post-rainy season battles.

Reports from registration stations throughout the country are still pouring in for collation at the main office of the Security, Immigration and Refugee Affairs Authority in Addis Ababa, to determine the number of Eritreans residing in the country.

A new regulation issued in early August requires all Eritreans who voted in the 1993 referendum for their country's final split with Ethiopia as well as those who had since secured Eritrean citizenship living in Ethiopia to register and secure residence permits.

This was in line with the 1968 government regulation requiring foreigners to register and secure residence permits.

All Eritreans in Ethiopia were required to register with their family members by producing identity cards, birth and marriage certificates, passports, trade and driving licenses, property ownership documents and vehicle titular books.

Some 135,000 Eritreans living in Ethiopia voted in the April 1993 referendum for their country's independence.

The number of Eritreans residing in Ethiopia is estimated at between 500,000 and 600,000. Those who did not vote in the referendum are assumed to have opted for Ethiopian citizenship.