Mohammed Sahnoun arrived in the Eritrean capital Asmara for talks with President Isayas Afewerki and was expected to fly on to Ethiopia on Wednesday.

A recent flurry of peace initiatives has so far failed to bring the two sides any closer to a settlement of their border dispute and diplomatic sources in Asmara said they were not confident of a breakthrough.

``It remains to be seen what Mr Sahnoun can do, and that's being optimistic. It is very late in the day, it seems that the locomotive has already built up steam and war will be difficult to avert,'' a senior Western diplomat told Reuters.

The U.N. Security Council last week threw its support behind a peace proposal put forward by the Organisation of African Unity (OAU).

Ethiopia has backed the OAU plan but Eritrea has not accepted two of its clauses, saying it wants clarification.

Specifically, Asmara has called for international monitors to police the disputed border while ownership is established.

In a televised interview on Sunday night, Afewerki said ``Eritrea will never fire the first bullet'' in the dispute and ``remains engaged in the OAU peace process.''

Eritrean Foreign Minister Haile Weldensae said during a visit to Sweden on Monday that his country was ready to resolve the dispute, but warned it would defend itself against any attack by Ethiopia.

The border dispute exploded last year when hundreds of people were killed in artillery battles on three fronts, but fighting subsided with the onset of the rainy season in mid-June.

Since then, both sides have reinforced their positions along the 1,000 km (600 mile) border with troops and artillery.

U.S envoy Anthony Lake last week completed his fourth visit in as many months to the region, but failed to win a peace deal.