Date=6/24/98
Type=Correspondent Report
Number=2-234446
Title=Eritrean war fund (L only)
Byline=Carol Pineau
Dateline=Asmara

Intro: Millions of Eritreans who live in other countries are sending money home to help pay for Eritrea's war with ethiopia. Carol Pineau reports from Asmara.

Text: Since war broke out with Ethiopia in early June, Eritreans around the world have been sending money to a national defense account. The figures have not yet been tallied. But the bank of Eritrea governor, Tekie Beyene, says he is surprised at how much money has been sent.

"Oh my goodness, very, very high, so high, beyond anybody's imagination. So there is a big amount of flow of hard currency into the country. We give them the account numbers and they send it to the bank account."

Mr. Tekie says everyone gives the minimum of one month's salary. It is a large sacrifice, but one which has a historical Background in the self reliance shown during the Eritrean Peoples' liberation front (e-p-l-f) fight for independence.

"During the struggle, when EPLF was fighting the war, it has never been supported by the east, never been supported by the west, nor by the arabs. So everything was from an Eritrean citizen inside or outside. I, myself, before I joined the field was working in the bank in Eritrea here. Clandestinely organized, I used to pay 15 percent of my salary to the front. So every Eritrean is used to contribute and that is why the war was won."

But while Mr. Tekie acknowledges the human losses that come with war, he is confident there will not be a financial drain on the country. The remittances from abroad, he says, will be enough to cover the cost.

"It is going to be more than that, definitely, because as i said, even locally, Eritreans are contributing a lot, in millions locally. The foreign currency that is coming from the outside world is going to be in abundance, it will be more than enough."

Mr. Tekie and other financial experts note however, that the real Economic cost of this war is that the two horn of african Neighbors are being diverted from pursuing development. (signed)

NEB/CPJWH
24-Jun-98 8:21 AM EDT (1221 UTC)
Source: Voice of America