UN Correspondent Jon Leyne: There is confusion and frustration in the United Nations

Diplomats at the UN said the Security Council was likely to apply a mandatory embargo if the fighting in the disputed border area does not stop.

Meanwhile about 100 Ethiopian soldiers captured by Eritrea over the weekend during an outbreak of heavy fighting have been paraded before journalists in the capital, Asmara.

This 17-year old soldier said he was an Ethiopian conscript

The soldiers said they marched tired and hungry for 14 hours to the frontline, where they were encircled by Eritreans and told to give up their guns.

Earlier on Wednesday there was more fighting between Eritrea and Ethiopia on two fronts along the disputed border despite international calls for a halt to the fighting.

The fighting broke out in earnest on Saturday, after an eight-month unofficial ceasefire. Both sides have made claims of inflicting heavy casualties.

No compromise

BBC Correspondent to the UN Jon Leyne said ambassadors from both sides gave uncompromising speeches to the Security Council offering no prospect of an early end to the dispute.

Cathy Jenkins: PoWs a mix of experienced soldiers, volunteeers and conscripts

Eritrea's Ambassador to the UN, Haile Menkerios, said attempting to broker a peace deal was not that simple.

"Ethiopia has not expended an estimated ($)300m on arms since last June simply to retake a desolate patch of rocks," he said.

UN envoy Mohamed Sahnoun: The fighting is "nonsensical and unacceptable"

Ethiopia's Ambassador to the UN, Duri Mohammed accused the Eritrean regime of consistently sabotaging all peace proposals in the past nine months.

He said they were carrying out "provocative military actions in order to create an atmosphere of general crisis to divert the attention of the international community from addressing the core issue, ie Eritrean withdrawal from Ethiopian territory".

Fighting to continue

In Addis Ababa, the Ethiopian Foreign Minister, Seyoum Mesfin, has said his country has no option but to continue fighting Eritrean forces until they leave the disputed border area.

Addressing a news conference, Mr Mesfin said Ethiopia would also continue air raids, despite international complaints.

Mr Mesfin said the international community should press Eritrea into following Ethiopia's acceptance of a framework agreement by the Organisation of African Unity for resolving the dispute.

Earlier, US President Bill Clinton expressed disappointment that the two countries had turned to fighting while international diplomatic efforts were still under way.

"I urge both parties to halt the fighting immediately. If the conflict continues, its human and economic cost will be incalculable for the people of Ethiopia and Eritrea," Mr Clinton said in a statement.

"A peaceful solution can and must be found without delay," he said.