"The objective of this situation report is to provide timely and relevant information and analysis on the border dispute that recently broke out between Eritrea and Djibouti.The facts at hand being fragmented, it is too early and difficult to provide a definite judgement on the diverse set of factors that caused the border dispute, its exact course, and long-term implications for bilateral relations and regional security. Yet, some significant observations can be made on some of the most important issues involved. This report comprises three sections. In the first section, relations between Eritrea and Djibouti since 1991 are described, including prior border disputes. In the second section, the colonial source of the border dispute is traced and details are given of its course. The third section examines the most significant and recent developments which lie at the centre of the lack of peace and security in the Horn of Africa, where the present borders were arbitrarily established at the end of the nineteenth century by treaties drawn up by the British, Italian and French colonial powers. Finally, the report provides a conclusion and a number of recommendations to find a durable basis for peaceful relations between the two states."