Somalia and Ethiopia yesterday reported heavy fighting in two battles in the war in the Horn of Africa.

Somalia radio, monitored in Nairobi, said Somali forces inflicted heavy losses on the Ethiopians at Negele in southern Ethiopia during a fierce battle.

The Ethiopian radio said 70 Somali regular soldiers were killed and 150 captured in a recent search and destroy mission near Harrar, east ofAddis Ababa.

Meanwhile, Somali President Mohammed Siad Barre was reported to have flown to the northern city of Hergeisa which was said by the Somalis to be the target of an all-out attack by Sovit and Cuban-backed Ethiopian troops.

Siad Barre was scheduled to confere with military commanders at Hargeis. Somalia's second largest city.

In other developments:

It was announced in Mogadishu that West Germany will give Somalia $25 million in financial and technical aid this year. The package includes a previously announced $12 million credit.

An Israeli Defense Ministry spokesman said, "I don't know," when asked about a Washington report that Israel was providing Ethiopia with arms to use against Ethiopian rebels. The report said Israel was supply Ethiopia with cluster bombs, aircraft-fired missiles and napalm.

Newsweek magazine, quoting intelligence sources said Cuba is mobilizing military reservists for deployment to Ethiopia. It said two Soviet passenger ships were heading for Havana to pick up 3,000 to 5,000 Cuban troops by bound for the battlefields in the Horn of Africa.