South Sudan frees POWs

South Sudan freed prisoners of war today as clashes appeared to abate between north and south, after cross-border fighting that…

South Sudan freed prisoners of war today as clashes appeared to abate between north and south, after cross-border fighting that threatened to tip into all-out war.

Sitting on some of Africa's most significant oil reserves, Sudan and South Sudan have been unable to resolve a dispute over oil revenues and border demarcation since the South gained independence in July.

Nearly all oil production has now stopped and the border fighting in contested oil-producing regions has grown more intense, prompting China, which has economic interests in both countries, and the African Union to push for a diplomatic deal.

"The SPLA (South Sudan's army) handed over prisoners of war to the ICRC. They were 14 who were captured during the battles of Heglig from April 10th to April 15th," Philip Aguer, spokesman for South Sudan's army, said in Juba.

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Mr Aguer was referring to the Heglig oilfield which the SPLA captured earlier this month but later withdrew from, under international pressure. Juba has since accused Sudan's armed forces of bombing its territory, a claim Khartoum denies.

South Sudan's government and its army have said the deal was brokered by Egypt during its foreign minister's visit to both countries about 10 days ago.The prisoners are expected to arrive in the north tomorrow, Sudan's state news agency Suna said.

Mr Aguer said the men were mostly Sudanese from the north as well as one South Sudanese who he said had been recruited as a mercenary, adding the Sudanese army was holding at least seven SPLA members as prisoner of war.

The border area appeared calmer after Sudanese foreign minister Ali Ahmed Karti said yesterday Khartoum was ready to resume talks on security issues. A day earlier, president Omar al-Bashir had ruled out negotiations.

Residents of Bentiu, about 80 km from the contested border, said the area had come under attack on Monday from Sudanese fighter jets.

The African Union urged both sides to resume talks, which have collapsed several times, and strike a deal within three months or face a binding ruling.

Sudan's finance minister Ali Mahmoud said all ministers had donated one month's salary to a fund to support the armed forces, Suna said. All other employees would have two days' pay deducted from their salary, while public institutions would have to cut fuel expenditures by 50 per cent.

Both north and south face severe economic crises with fuel shortages and rising food prices, which will make it difficult to fund an all-out war for a long time. Heglig used to supply half of Sudan's oil output.

Reuters