Ethiopia, Egypt tone down talk of war over Nile dam

ADDIS ABABA (Reuters) - 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.