Waning Friendship between Elves and Dwarves

Here is something interesting I notice.  In "A Journey in the Dark"
there is the following exchange:

        "'Those were happier days, when there was still close friendship
          at times between folk of different race, even between Dwarves
          and Elves'

          'It was not the fault of the Dwarves that the friendship waned,'
          said Gimli.

          'I have not heard that it was the fault of the Elves', said 
           Legolas.
         
          'I have heard both,' said Gandalf; 'and I will not give judgement now."

The happier days were sometime in the second age.  So what had happened
in the meanwhile that would cause the friendship between the Dwarves
and Elves to wane?  Obviously Celebrimbor and his people were wiped
out by Sauron, but it does not seem that would be attributed to either
the Dwarves or Elves.  What else happened in that time span that
may have legitimately been either the fault of the Elves or Dwarves?

Stephen