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DATE=5/25/2000 TYPE=CORRESPONDENT REPORT TITLE=ETHIOPIA - ERITREA (S-UPDATE) NUMBER=2-262795 BYLINE=SCOTT STEARNS DATELINE=NAIROBI CONTENT= VOICED AT: INTRO: Ethiopia says it has recaptured the key border town of Zalambessa, destroying what it says is an Eritrean army on the verge of collapse. As VOA's Scott Stearns reports, Eritrea says it withdrew from the disputed area as part of a new move toward peace. TEXT: Ethiopia says it took Zalambessa overnight in an air and ground offensive the government says "annihilated" Eritrean units there. Zalambessa was the biggest Ethiopian town still held by Eritreans since this war began two years ago. Eritrea says it started withdrawing from those areas Wednesday following an appeal from the Organization of African Unity. Eritrea says it was a voluntary retreat in the interest of peace and not because of Ethiopian military gains. After capturing more than 100 kilometers of western Eritrea last week, Ethiopia began fighting on the war's central front two days ago. Now they say the Eritrean army there is on the run and Ethiopian units are in pursuit. If Eritrean units pull back to their pre-war border, Ethiopia has said it will stop its offensive and withdraw from territories occupied over the last two weeks. (SIGNED) NEB/SS/GE/PLM 25-May-2000 06:24 AM EDT (25-May-2000 1024 UTC) NNNN Source: Voice of America .





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