PREPARATION: Chop the onions. Using the flat side of a large knife, crush garlic with a pinch of salt. Core, seed, and chop tomatoes. Remove stems, seeds, and ribs from red and green bell peppers and chop. Stem, seed, and mince hot pepper. the onions and garlic paste; saute until onions are wilted, about 5 minutes. Add tomatoes, bell and hot peppers, the sugar, and black pepper to taste. Stir. Cook, covered, over medium heat until vegetables are very soft and mixture has thickened, about 25 minutes. Uncover, increase heat, and reduce mixture for 1 to 2 minutes more. NOTE: Recipe can be made to this point several days ahead. NOTE: Recipe can be made to this point several hours ahead. COOKING AND SERVING: In a frying pan, cook ham over low heat in remaining 1 1/2 tablespoons olive oil until browned, about 5 minutes. Remove ham with a slotted spoon and keep warm. Reserve oil in pan. frying pan and pour in egg-vegetable mixture. Simmer mixture, stirring, over low heat until eggs just begin to set. Let eggs continue to cook undisturbed until set. This Basque-American specialty is earthy, simple, and highly flavored.