Eritrea warned would re-start war with Ethiopia if UN fails to resolve border dispute. UN Security Council extended mandate of UN mission until March 2006, expressing concern over high troop concentrations near border. Ethiopia’s election board confirmed PM Meles Zenawi’s coalition won clear victory in disputed May election; government rejected opposition proposal to form unity government. Zenawi instead announced willing to open talks with main Ethiopian guerrilla movement, Oromo Liberation Front. Police arrested over 40 opposition members prior to planned protests early October.

UN Special Humanitarian Envoy Martti Ahtisaari began trip to region 23 August; called for more flexible delivery of aid. Eritrean Foreign Minister Ali Said died of heart attack 28 August.

UN Security Council mooted possible trip to region to kick-start implementation of 2003 border demarcation ruling. UNMEE warned incidents in Temporary Security Zone risk return to hostilities. In Ethiopia, bombs exploded in 3 Jigjiga bars killing 5, injuring 31. Ethiopian government and Ogaden National Liberation Front gave mixed signals about prospect for peace talks.

At least 22 killed by police in Addis Ababa riots following May elections; both PM Zenawi and opposition EPRDF claimed victory with final results to be announced 8 July. National Elections Board and international observers began to investigate fraud allegations in 135 contested constituencies. Eritrea urged greater international pressure to resolve dispute over Badme town.

As Eritrea faced growing food insecurity and Ethiopia held flawed elections, political rhetoric over border dispute continued. Eritrea’s President Afwerki said Ethiopian government “views war as only resort” and blamed U.S. for Ethiopia’s non-compliance with 2003 boundary ruling. Opposition gains in Ethiopian elections may reduce Addis Ababa’s room for manoeuvre and harden government line.

Peace process stalled since closure of Boundary Commission field offices March 2005, citing “obstructive actions” by Ethiopia. Ongoing war of words: Ethiopia said Eritrea trained and airlifted 32 insurgents killed by security forces in Ethiopia’s unstable Ogaden region. Eritrean President Isaias Afewerki told ruling party officials Ethiopian expansionism made renewed conflict inevitable and stepped up military preparedness.

UN Security Council renewed UNMEE force mandate for 6 months amid tension over alleged military build-up; UNMEE political chief warned of continuing war risk. UN Sec.-Gen. Kofi Annan urged Security Council visit to region to push peace efforts; Eritrea said UNSC needed to pressure Ethiopia to fully implement 2002 border ruling.

Concern over alleged military build-up and cross-border incursions. Ethiopia claimed 2 killed near Bure, 20km within Ethiopia, were Eritrean soldiers; Eritrea denied. President of UN Security Council called for UN mission to boost political dialogue; EU suggested development assistance could be “directly influenced” by political situation.

Rhetoric heated up as Eritrea denounced Ethiopian troop deployments along disputed border, despite recent Ethiopian 5-point peace plan proposed December. Having accepted earlier border ruling on Badme town “in principle” December 2004, Ethiopian PM said “adjustments” needed; opposition demonstration of 50,000 in Addis Ababa warned against concessions. UN Secretary-General Special Representative Lloyd Axworthy visited Addis but not Asmara in trip to region; Eritrea says 2000 Algiers agreement (and 2002 border ruling) left no room for negotiation, and refuses to meet with Axworthy.

Eritrea rebuffed Ethiopia’s acceptance “in principle” of 2002 Badme ruling, demanding full implementation; Ethiopia warned Eritrea against taking “military steps”. Ethiopian PM Meles issued 5-point plan, calling for talks while maintaining ruling “illegal and unjust”; UN Security Council called for normalisation. UN Mission to Ethiopia and Eritrea announced 550-man reduction in size.