State of progress in the international arena...

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The UN, on the border issue between ETh and ERi

"...But Ethiopia rejected the decision and Eritrea refused to hold new talks on it, creating the current impasse.

Eritrea then grounded U.N. helicopter flights in October and imposed other restrictions on peacekeepers. That prompted both sides to move troops and arms nearer to the border, stoking fears of a resumption of fighting along the border.

While Ethiopia has since agreed to pull back its troops, in line with a Security Council request, Eritrea has refused to do so, saying the troops on its side were actually militia fighters "carrying out agricultural activities," Annan said.

U.N. officials say the restrictions have made it harder for them to monitor troop movements, supply U.N. outposts and conduct emergency medical evacuations.

Among Annan's options for future mission changes were moving its headquarters to the capital of Ethiopia, Addis Ababa, from the Eritrean capital Asmara, changing the operation into an observer mission with limited monitoring and conflict-prevention capabilities, and downgrading the mission to a liaison office with even less ability to monitor the border and prevent a fresh outbreak of war..."

http://www.alertnet.org/thenews/newsdesk/N03300422.htm