Horn ceasefire holding

There has been no confrontation between the two sides since June

The United Nations has expressed optimism that a peace deal between Ethiopia and Eritrea could be in sight as the two sides had continued to observe a cease-fire brokered in June.

The head of the UN Mission in Ethiopia and Eritrea (UNMEE), Joseph Legwaila said the two sides had not "shot at each other" over the past five months.

This is one of those ceasefires where even Almighty God himself becomes the observer and the monitor

Joseph Legwaila

This, Mr Legwaila said, augured well for the peace process and refuted claims that the two sides were accumulating arms to resume fighting.

Tens of thousands of people, most of them soldiers from both sides, were killed in the war and more than 1.2 million people have been displaced.

The UN envoy, who is visiting both countries to assess the military and political situation on the ground, met Ethiopian authorities on Wednesday and will be heading to Eritrea on Thursday.

The UN is to deploy 4,200 troops led by a Dutch General, Patrick Cammaert to monitor the cessation of hostilities agreement and create a temporary security zone.

Algiers Talks

UN says there is no evidence the two sides are re-arming

"This is one of those ceasefires where even Almighty God himself becomes the observer and the monitor," Mr Legwaila told a press conference in Addis Ababa.

"I'm so surprised that two armies facing each other have been so disciplined and not even a single incident. At least nothing has been reported to us."

Mr Legwaila denied claims that the Ethiopia-Eritrea peace talks held in the Algerian capital, Algiers, had collapsed.

The talks, mediated by the Organisation of African Unity (OAU) in Algiers, were aimed at turning June's cease-fire agreement into a more comprehensive peace accord.

"I insist that the talks have not collapsed and there is no deadlock. There was a pause and they will be resumed and sooner rather than later there will be an agreement."

Ethiopian refugees

Cease fire signed in June but without a peace accord

The Ethiopian Prime Minister, Meles Zenawi, called for an end to what he termed appalling living standards for some 30,000 Ethiopian refugees in Eritrea.

"The most pressing issue to date has been the appalling condition of Ethiopians in Eritrea," the prime minister told Mr Legwaila.

Mr Legwaila acknowledged that both countries faced a humanitarian disaster and said the UN was willing to assist both sides resolve the issue.