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By Yara Bayoumy and El-Tayeb Siddig

JUBA/KHARTOUM, April 26 (Reuters) – Showing no sign of a

let-up in tensions, South Sudan accused Sudan on Thursday of

bombing a village in its oil-producing Unity state while

Khartoum complained its soldiers had been beaten in captivity.

The release of 14 Sudanese soldiers on Wednesday under a

deal mediated by Egypt h ad been expected to ease tensions

between the two countries, where disputes over oil revenues and

border demarcation have threatened to escalate into all-out war.

But in a fresh slew of accusations and counter-accusations

on Thursday, Philip Aguer, the spokesman for South Sudan’s army,

said Sudan had bombed the village of Chotchara on Wednesday.

“Two MiGs, one Antonov and two gunships dropped four bombs near

the cattle camps,” he told Reuters.

Unity state has borne the brunt of aerial bombing after

disputes simmering since South Sudan gained independence in July

boiled over into border fighting three weeks ago. Two people

were killed on Monday in Unity state’s capital, Bentiu, some 80

km (50 miles) from the contested border.

Khartoum has denied bombing South Sudan and on Thursday its

army spokesman, al-Sawarmi Khalid, reiterated that denial.

Meanwhile a Sudanese soldier, one of 14 prisoners handed

over by South Sudan to Egypt – which flew them to Cairo and from

there to Khartoum – said the group had been beaten and insulted

during their detention.

“We were subject to all kinds of insults and beatings during

our stay there,” Lieutenant Khalid Hassan Ahmed, a doctor in the

Sudanese army, told reporters at Khartoum airport.

South Sudan denied it had mistreated the soldiers and urged

Khartoum to release all southern soldiers held prisoner.

The tensions between the two countries have halted all oil

production, choking their largely oil-dependent economies and

causing nationwide fuel shortages.

China, which has significant business and oil interests in

both countries, has said it would send its special envoy for

African affairs to Sudan and South Sudan soon to encourage

talks. It has yet to give dates for envoy Zhong Jianhua’s visit.

China is one of Sudanese President Omar Hassan al-Bashir’s

strongest allies. South Sudanese President Salva Kiir has also

just been on an official trip to Beijing.

AFRICAN UNION MEDIATION

The African Union has demanded Sudan and South Sudan resume

talks within two weeks, warning that it would issue its own

binding rulings on their disputes if they failed to reach

agreement within three months.

Bashir, who has ruled Sudan since 1989, has refused to

negotiate with South Sudan’s government, saying it only

understood the language of the gun. But Sudanese Foreign

Minister Ali Ahmed Karti said he was willing to talk on security

issues.

South Sudan Information Minister Barnaba Benjamin said the

AU’s efforts were a step in the right direction. “But they

should direct this to Bashir who refuses to have any dialogue,”

Barnaba told Reuters.

Talks brokered by the AU and led by former South African

President Thabo Mbeki collapsed last month after Khartoum asked

for time to review recommendations.

South Sudan then seized the disputed Heglig oilfield, on

which Sudan is largely dependent for oil production, but after

finding itself isolated, withdrew its forces last week.

Benjamin said for AU mediation to work, more international

engagement was needed, calling on the United Nations Security

Council and other international organisations to support it.

Sudan and southern Sudanese fought a protracted civil war

until a 2005 peace agreement, which opened the way to South

Sudan eventually declaring independence.

The latest tensions are affecting humanitarian aid. World

Vision, which says it is one of the few remaining humanitarian

groups in the border area, said it was relocating some of its

staff. “It is already incredibly difficult to deliver

humanitarian assistance in South Sudan and if widespread

conflict breaks out, it will make it almost impossible,” Edwin

Asante, the director for South Sudan, said.

(Writing by Yara Bayoumy and Ulf Laessing; Editing by Myra

MacDonald)