According to a meeting transcript seen by the Financial Times, Sir Elihu Lauterpacht, president of the independent Eritrea-Ethiopia Boundary Commission, told the countries earlier this month that after a five-year stalemate: “Effectively, we can do no more.”

The failure to reach agreement will raise fears of renewed conflict between the two countries whose poisoned relations have exacerbated instability in the volatile Horn of Africa.

Ethiopia and Eritrea say they do not want renewed fighting along their 1,000km border – a 1998-2000 war killed at least 70,000 people – but both countries have massed thousands of troops along the heavily fortified border zone this year.

In July, the United Nations warned that “as the parties continue military preparations, there is a serious risk that a relatively minor incident could lead to a military confrontation”.

The commission “delimited” the border – set the boundary on the map – in April 2002 but both sides have prevented it being “demarcated” on the ground with boundary pillars.

Eritrea has accepted the commission’s decision without qualification, but has violated the 25km-wide temporary security zone along the border and imposed restrictions on the UN Mission, which is meant to be monitoring the zone.

Ethiopia has also accepted the ruling, but resisted moves towards implementation. It has said demarcation cannot be allowed where it cuts villages in two, and that it will not discuss demarcation while Eritrea engages in hostile acts in the region.

Before the commission meeting on September 6 and 7, Eritrea indicated a willingness to take steps to allow demarcation to begin.

According to the transcript, Sir Elihu, the commission president, said the commission “appreciates the implications of flexibility by Eritrea”. But Fisseha Yimer, Ethiopia’s representative, indicated his country’s position had not changed.

“We regret that we could not take our work through to its conclusion, but at least we leave you with a line that is operable,” Sir Elihu said. “It is up to you to work out how to implement it.”

Barring shifts in the positions of the two countries, the boundary will automatically stand as demarcated in November based on map co-ordinates set in 2002.

But Bereket Simon, an adviser to Meles Zenawi, Ethiopia’s prime minister, said: “The boundary cannot be official on the map. We don’t accept it. We accept demarcation on the ground.”

---