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By Ulf Laessing

ADDIS ABABA (Reuters) - Former civil war foes Sudan and South Sudan appear to have made progress this week toward a deal that would allow the resumption of oil exports vital to the economies of both African countries, diplomats and sources familiar with the talks said.

Much could still go wrong given profound mutual mistrust and failure to fully implement previous deals, they said, but the mood at the African Union (AU)-brokered talks appeared to be brighter than in previous rounds.

South Sudan seceded from Sudan last year under a 2005 peace deal but the two have yet to resolve a litany of issues related to partition. Border clashes almost boiled over into full-scale war in April, although tensions have abated since then.

Western and African powers are now putting pressure on both presidents to come to the Ethiopian capital Addis Ababa at the end of the week to wrap up the talks before a U.N. Security Council deadline expires on Sept 22.

After two weeks of talks the sides are nearing an initial border security deal indispensable to implementing an interim pact on oil transport fees reached last month, diplomats said.

Neither side would confirm that Sudanese President Omar Hassan al-Bashir and his southern counterpart, Salva Kiir, would hold a summit just before the end of the U.N. deadline, but diplomats were optimistic.

"We've come a long way. There are still issues that need to be solved but it's doable. The atmosphere at the talks is positive," one diplomat told Reuters.

"The talks are constructive. Both sides have made progress and (are) trying to reach a deal," said a source after the talks.   Continued...

Source: http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFdI2v3g7t2WXyruGwbxvWUmEWt9A&url=http://af.reuters.com/article/worldNews/idAFBRE88H0QY20120918