S.Sudan plans mediation between Ethiopia and Eritrea

* Ethiopia, Eritrea at loggerheads over border

* S. Sudan says has close ties to both countries

* Talks could start as early as November

ADDIS ABABA, Oct 24 (Reuters) - Newly independent South

Sudan plans to help resolve the long-running border dispute

between Ethiopia and Eritrea, a senior official said on

Wednesday.

South Sudan's minister for cabinet affairs, Deng Alor, said

Addis Ababa and Asmara had given the green light for mediation

talks on the border, which could start as early as November.

"We have close ties with both countries so we are planning

to mediate and solve the problems that they have between them,"

Deng Alor, South Sudan's minister for cabinet affairs, told

Reuters.

Ethiopian and Eritrean officials were not available to

comment. Ethiopia has said its conflict with Asmara over the

demarcation of their shared border following a 1998-2000 war

would be solved only through a negotiated settlement.

South Sudan is still embroiled in its own frontier argument

with its northern neighbour, Sudan. The two countries broke

apart last year under a 2005 peace deal that ended decades of

civil war.

Alor said South Sudanese President Salva Kiir and other

senior officials were set to name a delegation "very soon" that

would travel to both capitals.

"We will embark on rounds of shuttle diplomacy between the

two countries. We are hoping to start in November," Alor said.

A Hague-based boundary commission awarded the flashpoint

frontier village of Badme to Eritrea in 2002. But Ethiopia has

yet to conform with the ruling, insisting on further

negotiations on its implementation.

Asmara wants Ethiopia to pull its troops out before

normalising relations.

The two countries nearly returned to war in March when Addis

Ababa launched cross-border attacks in Eritrea on what it said

were rebel targets.

Both countries routinely accuse each other of backing

dissidents to destabilise and topple the other's government.

Ethiopian strongman Meles Zenawi died in August.

(Editing by Richard Lough and Robert Woodward)