Zimbabwe opposition may sign initial talks agreement

By Cris Chinaka

HARARE (Reuters) - Zimbabwe's main opposition party could sign an agreement as early as Monday to begin substantive talks with President Robert Mugabe's party on ending a political impasse that has worsened the country's severe economic crisis, opposition officials said on Saturday.

The apparent breakthrough came after South African President Thabo Mbeki proposed forming a team drawn from African regional bodies and the United Nations to help him mediate the worsening crisis in neighboring Zimbabwe.

A statement seen by Reuters on Saturday said Mbeki had proposed during a meeting on Friday creating a team representing the African Union, the Southern African Development Community (SADC) and the United Nations, with which he would liaise in efforts to foster dialogue between Zimbabwe's warring parties.

The Movement for Democratic Change has refused to recognize Mugabe's overwhelming victory in a June 27 vote held after MDC candidate Morgan Tsvangirai pulled out, citing violence by ruling party militia.

The resulting impasse has dampened hopes of halting an economic meltdown that has forced the central bank to introduce a 100 billion Zimbabwe dollar note -- enough to buy two loaves of bread -- in a desperate fight against hyperinflation.

In a public letter to his supporters, Tsvangirai -- who has previously demanded that an AU envoy join the mediation before his MDC will agree to more substantial talks -- said setting up the new team was a positive step.

"We welcome (the) appointment of a reference group of eminent Africans who will work with President Mbeki and the main parties in Zimbabwe to find a peaceful negotiated solution to the Zimbabwean crisis," he said.

Opposition officials said Tsvangirai indicated to AU commission Chairman Jean Ping, who he met in Harare on Saturday, that he would be ready to sign a draft memorandum of understanding in the next few days.