Well,
if you want to be that cynical...
There was friendship between them. I would call that place the Second Bree, because you have a similar situation of two races ith rough edges against each other living together without a war breaking up immediately.
Plus, Dwarves do not teach their language. They wouldn't be able to understand the Elves unless they learned Elvish. They'd recognize the word "friend".
Edit:
Quote:
Originally Posted by FOTR
"It was not the fault of the Dwarves that the friendship waned," said Gimli.
"I have not heard that it was the fault of Elves," said Legolas.
"I have heard both," said Gandalf.
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And both are right, and both are wrong, in my opinion.