Ethiopia and Egypt have agreed to hold additional talks on the impact of a giant dam that Ethiopia is building on the Nile.
Last week, Egyptian President Mohammed Morsi said he did not want war, but would keep "all options" open concerning his country's reaction to the dam project, which Egypt fears will drastically reduce its water supply.
Ethiopian officials responded, saying they would not halt construction of the nearly $5 billion Grand Ethiopian Renaissance Dam.
Egyptian Foreign Minister Mohamed Kamel Amr said Tuesday that some previous statements were made "in the heat of the moment."
Amr met with his Ethiopian counterpart, Tedros Adhanom, Monday and Tuesday in Ethiopia's capital. Both said they will continue talks about the hydroelectric dam, including further technical discussions.
The majority of Nile river water originates in Ethiopia. However, colonial-era treaties written by Britain gave Egypt as much as 87 percent of the Nile's flow.
In May, Ethiopia began diverting water from a Nile tributary for construction of the dam.
Ethiopian officials say Egypt can make up any reduction with better water management.