The story is set far into the future, not on Earth, about two nations that have been at war for as long as can be remembered but the origins of the war have now been forgotten. I seem to remember that the two factions are illustrated with one nation using blue uniforms and the other using red uniforms. A soldier on each side decides that the war is pointless and they must find a way to bring it to an end The story was in the format of an annual-sized book, in full colour. I'd be grateful for any help as I've been trying to track down a copy for years but need to find out the title .
Is it possible that it's The Butter Battle Book http://en.wikipedia.org/wiki/The_Butter_Battle_Book Like the article says it's inspired by Gulliver's Travels and the Cold War. It's been a while since I've seen it or read it but I seem to remember two people trying to stop the arms race some how, that could just be a faulty memory though since the article doesn't mention it.