ADDIS ABABA – Ethiopia and Egypt cooled talk of war on Tuesday and agreed to more dialogue to resolve a row over a giant dam that the Horn of Africa nation is building on the Nile, on which Egyptians depend on for almost all their water. Africa's second and third most populous nations have traded barbs in past weeks about Ethiopia's new hydroelectric project, which Egypt fears will reduce a water supply vital for its 84 million people, who mostly live in the Nile valley and delta. Egyptian President Mohamed Morsi said on June 10 he did not want war, but would keep “all options open”, prompting Ethiopia to say it was ready to defend its $4.7 billion Great Renaissance Dam, which lies near the border with Sudan. Ethiopia summoned the Egyptian ambassador this month after politicians in Cairo were shown on television suggesting they supported Ethiopian rebels and military action. – Reuters
