ASMARA, Dec 22 (Reuters) - Eritrea dismissed on Friday reports by Amnesty International that accused the Red Sea state of arresting 500 parents of people who fled the country illegally to avoid conscription.

Asmara routinely denies rights criticism from abroad, saying the world has long been prejudiced against it and in favour of the Horn of Africa's main power Ethiopia.

"We will not spend our time running after daily accusations from that institution which doesn't do any work except making such kinds of statements every day," Information Minister Ali Abdu told Reuters by telephone.

National service officially lasts for 18 months, but in many cases is extended for several years. Almost one in 10 residents are conscripted.

"None of those arrested has been charged with a criminal offence or taken to court within the 48 hours stipulated by the Constitution and laws of Eritrea," the U.S.-branch of Amnesty said in a statement late on Thursday.

"The arrests reflect an upsurge in the Eritrean government's use of arbitrary and punitive sanctions against civil society, religious groups and human rights defenders," it added.

The information minister did not deny or confirm accusations by Amnesty that relatives are forced to either produce the missing child, pay a 50,000 nafka ($3,333) fine or serve six-months in the army.

"They don't have any right to intervene in our internal affairs," he said.

Eritrean government regulations make it difficult for young people to leave the country, which remains mobilised for the possibility of renewed war against Ethiopia over a disputed border ruling.

The two sides waged a 1998-2000 border war, in which an estimated 70,000 people died.

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