By Jack Kimball

ASMARA, May 9 (Reuters) Eritrea today defended its right to send troops into the disputed border region with arch-foe Ethiopia.

The United Nations called for both nations yesterday to withdraw their troops from the border where it said Addis Ababa and Asmara had moved more than 5,000 soldiers in recent months.

''It's not a violation, because at the end of the day, we have freedom of movement in our territory,'' Presidential advisor Yemane Ghebremeskel told Reuters.

''What the Security Council is saying now has nothing to do with the agreement. Why are we being asked about a few clauses in the agreement when the main clause has been violated?'' A peace agreement ended the 1998-2000 border war that killed some 70,000 people, but the process soon ground to a halt when Ethiopia rejected a 2002 decision by an independent boundary commission.

Analysts say relations between the neighbours have reached an all-time low due to Somalia, where Ethiopian-backed Somali government troops ousted Islamists, seen to be supported by Eritrea, in a war late last year.

U N Secretary-General Ban Ki-moon said in a report in April the border impasse was a ''serious'' source of instability.

''The situation is exacerbated by hostile public statements, a volatile military and security situation ... and the parties' involvement in other complex regional crises,'' he said.

Despite analysts' fears of renewed conflict, the United Nations has gradually scaled down a peacekeeping mission monitoring Eritrea's 1,000 km (620 mile) border with Ethiopia.

Yemane accused the United Nations of being disingenuous with its claim of being ''deeply concerned'' with the peace process.

''That's just shedding crocodile tears, they have the power to enforce the border ruling,'' he said. ''But since the U.S.

favours Ethiopia, they are not going to do anything.'' REUTERS GL HT1537