The president of Georgia, Eduard Shevardnadze, and the leader of the breakaway region of Abkhazia, Vladislav Ardzinba, have agreed to take steps to lessen the tension on their common border.

The two leaders said they would stick to the terms of a ceasefire signed last week which called for both sides to withdraw their forces from the disputed Gali border region -- the scene of recent clashes between Abkhaz separatists and Georgian fighters.

Mr Ardzinba said Georgian refugees, who fled the fighting, would be allowed to return, while President Shevardnadze said they would be given financial assistance.

Abkhazia declared independence from Georgia in 1992 when separatists drove out Georgian troops and civilians in a thirteen-month war.