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Zimbabwe's MDC holds out on talks deal

By Stella Mapenzauswa
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Posted 21 July 2008 @ 07:01 am GMT

Zimbabwe's main opposition party said it would not sign an accord paving the way for talks to end a political crisis until mediator South Africa addressed its concerns, but regional officials on Sunday appeared optimistic a breakthrough was possible.

Pressure has been building for a negotiated settlement to the dispute over Zimbabwe's June 27 run-off election, which President Robert Mugabe won by a landslide after his challenger, Morgan Tsvangirai, pulled out citing violence and intimidation against his supporters.

The post-election tension and uncertainty has worsened the country's already desperate economic situation, with inflation of well over 2 million percent, chronic shortages of basic food and other commodities, and unemployment at about 80 percent.

On Sunday both sides publicly appeared to be digging in on their positions.

Mugabe's government took aim at Western countries supporting sanctions against Harare's ruling elite by saying it would transfer ownership of Western-owned firms to locals and investors from "friendly countries", Zimbabwe's state-owned Sunday Mail newspaper said.

Mugabe's spokesman George Charamba confirmed the government's drive against Western firms, which it has in the past accused of creating false shortages of basic commodities and unnecessarily pushing up prices.

"We are anxious to understand the behaviour of corporate bodies and whether this (shortages and price hikes) owes to market imperatives or political obligation of the foreign investors," Charamba told the Sunday Mail.

For its part, the opposition Movement for Democratic Change (MDC) said on Sunday it would not sign a deal paving the way for talks with Mugabe's ruling ZANU-PF until South African President Thabo Mbeki, who has mediated the crisis, addressed its concerns over guidelines on substantive negotiations.

"I think in principle the decision is to sign the document. We are committed to the dialogue process," MDC spokesman George Sibotshiwe told Reuters.

"Our executive and council have already gone through the document and have raised their concerns with the facilitator ... the onus is on the facilitator to ensure that those things are sorted out in order for the signing to happen within the required time."

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