Fighting broke out in early May and the early stages of the conflict saw sustained heavy artillery battles, with at least 200,000 troops mobilised.

The positions of the two warring nations remain far apart.

The Ethiopian Prime Minister, Meles Zenawi said he was seeking peace and justice, but the Eritrean President, Isayas Afewerki, had earlier in the week described the prospects for peace as dim.

The two leaders are having separate discussions with a mediation committee appointed by the Organisation of African Unity (OAU). There are no definite plans for them to meet face-to-face, although this has not been ruled out.

Burkina Faso President Blaise Compaore, who hosts this weekend's meeting, has appealed to the two sides to sustain the current relative lull in fighting until a long-term solution can be found.

The current round of talks is due to finish on Sunday.

Cold War hangover

Although there have been no significant clashes since mid-June, reports of artillery duels have become more common recently.

Recent diplomatic efforts by the United States and Rwanda to end the conflict have proved inconclusive.

During the Cold War between the United States and the former Soviet Union, the Horn of Africa region became awash with arms.

The current leaders of Ethiopia and Eritrea used to be allies in the fight against the Marxist government of Ethiopia, but are now bitter enemies.

Ethiopia says that in May Eritrea invaded an area previously administered by Ethiopia. An OAU team which investigated agreed that parts of the disputed area had previously been in Ethiopian hands, but Eritrea has refused to withdraw from these areas unless a neutral buffer-force is put in place.