U.N. Somalia arms report a "fairy-tale" - EritreaASMARA (Reuters) - A 
U.N. report that Eritrea and other nations are sending arms and troops into 
Somalia amid a brewing conflict is a "fairy-tale" intended to tarnish the 
burgeoning Islamist movement, Asmara said on Saturday.   The report to the U.N. 
Security Council said at least seven nations -- including Eritrea -- were 
providing arms and supplies to Islamists, who want Somalia ruled by sharia law, 
while three were arming the largely impotent interim government.   "These 
baseless and ungrounded accusations are intended to hit two targets," said an 
editorial in the government-owned Eritrea Profile, a bi-weekly newspaper.   
"One: tarnishing and changing the countenance of the movement created out of 
internal political dynamism of Somalis...Two: by fabricating a fairy-tale with 
regard to neighbouring countries."   The Islamist movement took over Mogadishu 
and a swathe of south Somalia in June, challenging the isolated
 government's aspirations of restoring central rule for the first time since 
the 1991 ouster of a dictator.   The U.N. report accused Eritrea of sending 
arms including anti-aircraft weapons and troops to Somalia.            
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     It estimated 2,000 Eritrean troops were in Somalia.   The Red Sea state 
slammed the United States for supporting Mogadishu's warlords -- whom the 
Islamists ousted in battles throughout the first half of the year -- and for 
fomenting conflict in Somalia.   "The people and Government of Eritrea do 
strongly object (to) the unjustified intervention pursued by the U.S. as well 
as its mercenaries and other external forces," the editorial added.   Despite 
the denials, most analysts and diplomats believe Eritrea is backing the 
Islamists militarily, while Asmara's arch-foe -- Ethiopia
 -- is supporting the government. They fear conflict in Somalia could quickly 
spread into a regional war. 
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