• President admits to dialogue with MDC
• Zim’s pullout from Club to cost embassies billions
• Mudzuri demands reinstatement
• SADC’s solidarity with Zim insincere
• Glaring loopholes in gold marketing policy
• Zvobgo long way from recovery
• MDC meets to prop up waning fortunes
• Hunger stalks drought-stricken Mt Darwin
• Healing Zim's bleeding ulcer
• Gono sets tone for revival
• Domestic debt stands at massive $607b
• AND NOW TO THE NOTEBOOK
• A reflection on Zimbabwean exceptionalism?
• Pig industry mulls ways of survival
• Groundnut production falls
• Budget failed to come up with measures to solve crisis
• MDC critique of Dec 2003 Monetary Policy Statement
• Mugabe agrees 'to be serious' about talks
• Mbeki visits Mugabe - and his sworn rival
• South Africa leader lobbies Mugabe
• Mbeki in deal on Zimbabwe negotiations
• 'Net cops for Zim
• Press Freedom Disappearing in Africa
• Judge grants banned Daily News green light to publish
• Outrage as Mbeki hints at S African land grab
• MDC activist appears in court for illegal possession of arms
• Bearer cheques to stay

      Diplomats interviewed this week told this paper that they would have
to change their status to comply with the country’s decision to withdraw its
membership from the Commonwealth.

      They said given the high cost of stationery and raw materials in the
country, they were likely to fork out a lot of money during the transition
period.

      "Prices are skyrocketing on a daily basis. We are going to fork out a
lot of money during this transition phase," said a diplomat who spoke on
condition of anonymity.

      Zimbabwe was suspended from the councils of the Commonwealth last year
after a presidential election won by President Robert Mugabe was criticised
by a Commonwealth observer mission as not free and fair.

      The government has, however, dismissed the report as flawed and said
the decision to extend the suspension was racist and orchestrated by Britain
because of its anger at the country’s land reforms.

      President Mugabe described the Common-wealth’s position as "pure
racism".

      Government said the decision was racist in the sense that British
Prime Minister Tony Blair’s spokesman announced the decision to suspend
Zimbabwe in advance of the deliberations of the six-member committee set up
to consult and recommend the way forward on Zimbabwe.

      It (the government) also blasted the decision that Australia had a
veto in the committee.

      Analysts said economic implications of the country’s withdrawal from
the Commonwealth were not much but it would worsen foreign investors’
perception of Zimbabwe and that may result in further international
isolation.

      12/19/2003 7:31:25 PM (GMT +2)

      NEW Reserve Bank of Zimbabwe governor, Gideon Gono, yesterday unveiled
his long-awaited maiden Monetary Policy Statement, which many believe could,
as a stimulus package, provide a tonic for the battered economy.

      At the centre of Gono's Monetary Policy agenda, along with bolstering
faltering exports and stabilising the exchange rate regime, is riding the
economy of hyper-inflation and just as well. We said it in one of our
editorials in November that the inflation scourge, largely blamed on
government profligacy and the weak local currency among other factors, was
something crying out for urgent attention. It has for a long time now been
the millstone around the nation's neck.

      Inflationary pressures, which have been intensifying with no prospect
of easing up, lie at the heart of the country's economic dilemma. As a
result local economic pride and promise, dreams and aspirations are
increasingly threatened as Zimbabweans, now feeling the sharpest edge of the
knife, are condemned to a stagnant life of misery.

      All sectors of the economy without exception are feeling the inflation
pinch as businesses are increasingly finding it difficult to plan even a
week ahead! Gono acknowledged as much when he said that nothing short of
tough remedial action could enable the government to curb what has become a
suppurating national ulcer - inflation.

      The new governor, who cut the image of an anti-inflation hawk of the
traditional economy when he presented his policy statement, projected
year-on-year inflation at between 170 percent and 200 percent by the end of
the next 12 months to December 31 2004. The ultimate goal is to reduce the
menace to single digit levels thereafter.

      Not an insurmountable task but by no means an easy one especially
given that the major player, the government, has shown over the years that,
other than fuelling inflation, it is incapable of tackling what now seems to
be a complex problem.

      Government will have to play ball because the situation calls for
austere anti-inflation measures no matter how unpopular they might be, to
weather the inflation storm.

      It is no longer time for populist policies because there is much more
at stake. As the country's financial regulator, Gono would have the
unenviable task of instilling fiscal discipline into a government known for
its insatiable appetite for cash. Previously the watchdog (RBZ) had been
under fire for not barking out but Gono will, in addition to being a staunch
defender of a tight monetary policy to keep inflation in check, need to
adopt a missionary zeal for fiscal rectitude for government to rein in its
profligacy.

      Only this, together with other measures to stimulate growth, could see
Zimbabwe deal with the near impossible task of reducing inflation to single
digit levels.

      12/19/2003 12:11:02 AM (GMT +2)

      ZIMBABWE’S domestic debt now stands at a staggering Z$607.1 billion
with the country’s external indebtedness, which is hardly serviced because
of the biting foreign currency crunch, rising to a whopping US$4 billion
last month.

      Of the total domestic debt, Z$574.5 billion is in Treasury Bills,
while government stocks amounted to $14.6 billion. Overdraft at the Reserve
Bank stood at $17.9 billion against an approved statutory limit of $61.0
billion.

      RBZ governor Gideon Gono said the heavy debt has been Zimbabwe’s
biggest problem because of its financing through domestic borrowing, which
is inflationary in nature.

      Of late, it has become virtually impossible for the southern African
country to service the debt, particularly the foreign component, due to lack
of balance-of-payments support and a crippling shortage of foreign currency.

      In his maiden monetary policy, the RBZ boss invited stakeholders to
give ideas on how the debt could be restructured through his office or that
of the senior secretary for Finance.

      The RBZ, together with the private sector and Treasury, Gono said,
were digesting a number of instruments that could be used to contain the
ballooning debt.

      For instance, the domestic debt could be converted into a foreign
loan, which will obviously attract reasonable interest rates. The government
could also issue a zero-coupon bond that would be purchased by investors at
a discount and could also help lower the debt burden.

      Investors would receive no interest over the tenure of the bond, but
receive full amount (par value) after a five-year period.

      "In the interim, the RBZ would open and operate a sinking fund into
which the government would put money on a regular basis for the eventual
repayment of the zero-coupon bond upon maturity.

      "A weighting system that takes account of the average inflation
profile is being considered for determining the discount factor for the said
bond," he said.

      On the conversion of the domestic debt into foreign debt, Gono said
"friendly" countries would be requested to issue foreign currency
denominated bonds in international capital markets.

      "The foreign currency raised would then be sold to the Reserve Bank,
and the local currency used to extinguish domestic debt, while the foreign
currency with the Reserve Bank could then be used to repay part of our debt
or meet the country’s import requirements.

      "While a comprehensive impact assessment of the above proposal is part
of the tripartite discussions, there is no doubt that the tentative debt
restructuring proposal would, if successful, impact positively on money
supply reduction efforts, hence complementing all other measures aimed at
inflation control and the revival of our economy," he said.

      12/19/2003 6:43:53 PM (GMT +2)

      CZ could not believe it this week when ZBC reported that violence
characterised ZANU PF’s Gutu North primary elections.

      The country’s permanent media choice reported — I hope correctly —
that losing candidate Lovemore Matuke alleged that so frightening was the
violence by some war veterans and members of the army that his mother had to
flee her home. So it was not surprising that Retired Air Marshal Josiah
Tunga-mirai won the primary election to represent the ruling party in the
by-election to fill the void left by the death of Vice-President Simon
Muzenda in September.

      So if ZANU PF supporters start fleeing their own homes just because of
primary elections pitting two candidates from within the same ruling party,
what will happen when the opposition MDC announces its own candidate for the
by-election. We wonder, shouldn’t we?

      When everyone is wondering what might be happening since no meaningful
rains have fallen despite assurances by our weathermen that this rain season
will be bounteous, Met Services director Amos Makarau thought it important
to explain the conundrum away.

      Some disgruntled former white commercial farmers who own private
aircraft are busy in the heavens dispersing any cloud that promises any form
of precipitation.

      He said as a result of this, Zimbabwe has not been receiving any rains
and, therefore, they are left with no choice but to start cloud seeding at a
princely sum of about $7 million per hour.

      "Anyone with a plane or a rocket launcher can do cloud seeding or
dispersing," he said.

      "We have airplanes coming into the country to disperse clouds with the
Civil Aviation saying the equipment to detect that is not functioning."

      In Zimbabwe, we all understand that the motive of these Rhodies and
their sympathisers is to avenge the loss of "their" land which has been
expropriated by the government, but what about Zambia, Mozambique, Malawi,
Tanzania and South Africa? They also have had little or no rains at all.
What could their motive be?

      Judging by the rate at which the Met Department always tell us what
will not happen, we wonder whether we still need its services anymore or
every individual should be left to do their own guess-work.

      Whoever is responsible for the upkeep of the vegetables market at
Mbare Musika should be hanged, for the person is a real criminal. Has anyone
out there ventured into that market, say, just after it has rained?

      To say the truth, the place looks like a macrocosm of George Mlilo’s
pigsty.

      The place is muddy all over and stinks like a toilet and one wonders
how those vendors who have become virtual denizens of that place survive.

      How can whoever should be responsible for that place surely have the
gall to collect fees from vendors who risk everyone’s life by operating from
such insalubrious surroundings. Under normal circumstances, that place would
have been declared a health disaster and simply cordoned off!

      Until recently, CZ thought The Sunday Mail’s "Under the Surface" award
goes to the best buffoon of the week, but we are surprised the Great Uncle
has been hogging the trophy for the past two weeks. Is everything all right?

      cznotebook@yahoo.co.uk

      12/19/2003 7:20:15 PM (GMT +2)

      MANY of us may have underplayed the role of human frailty in the
Zimbabwean political, social and economic melodrama. To our dismay - and
remarkably the glee of others - we heard Gushungo announce his intention to
rule until Amen!

      This tenacity for office hardly detracts from the fact that ZANU PF is
faced with a multi-layered internal succession crisis. They have to find
appropriate replacements for the army supremo, the police chief and
intelligence boss, amongst others.

      Some of the current office holders are due for retirement or are
already on extended contracts. Oh yes! And then there is the now taboo
subject of replacing Gushungo. It would be unthinkable in the corporate
sector, let alone a soccer team, to leave such wide-ranging succession
issues hanging indefinitely.

      Postponement leads to regression or at worst disintegration. This
seems inevitable for the smouldering ZANU PF edifice.

      ZANU PF's strategy in the past two years has been solely aimed at
managing public perception, hence the religious fascination with
establishing a monopoly to tell lies. Quite oblivious of time and reality,
ZANU PF has attempted to re-establish one-party state rule.

      This is a flawed strategy when it is not married with genuine attempts
to foster structural changes that would help alleviate or minimise the main
causes of public discontent. Propaganda alone is insufficient when the
country is in economic meltdown.

      History teaches us that violence is only an effective state-tool where
broad incentives can be deployed to buy off the majority. In the absence of
other visible forms of progress, violence either as a means or an end turns
against its architects.

      Ian Smith deployed violence internally and externally with fanatical
ruthlessness. Instead of stalling the tide of liberation, his actions
actually accelerated the process. The Gukurahundi atrocities did not
dissuade the Midlands /Matabeleland supporters of ZAPU during the 1980s.

      The deployment of violence - without complimentary community-wide
incentives - created a collective sense of disgruntlement.
      During the 1980s the Mugabe government had a virtual monopoly over the
instruments of state and communication. Even with such a stranglehold,
fissures of oppositional sentiment prospered and grew into the current
torrent of change.

      The sudden demise of the Soviet bloc taught us that ideological
posturing which is not tempered with positive gains self-destructs. It is
insufficient to be anti-colonial, anti-imperial and anti-west if such
sentiments are not complimented with the delivery of freedom and better
livelihoods to your people.

      Oppression in the name of progressive ideology is still as evil as
imperialism and colonialism. Patriots are not manufactured through violence
and re-education programmes. Rather they are converts born out of
consciousness, a critical sense of nationhood and a yearning for justice.

      Everyday I go to the airport and see hundreds fleeing the country to
become economic subjects of the former colonial power. This is not a problem
that re-education, violence or propaganda will solve. Nothing short of
economic recovery will suffice. ZANU PF can not ignore the brain drain
crisis in perpetuity.

      Rhodesian fundamentalism and the end thereof taught us that patriotism
constructed on fear and violence is the delusion of illegitimate state
minority regimes. It also taught us that violence emboldens the quest for a
better order and broadens the alliances fighting for change.

      The recently ended ZANU PF conference represented a setback for the
party and Zimbabwe as a whole. Tragically the conference failed to confront
ZANU PF's future. In particular, the question of a post-Gushungo legacy was
left in a dangerously ambivalent state.

      This state of impasse is clearly unsustainable given ZANU PF's
declining fortunes and the siege of an ill-managed economy.
      President Mugabe may still be strong enough to rule, but even by
immense grace from God, this can only be but for a season. ZANU PF needed to
answer the succession question for itself and not the international
community.

      The multi-layered succession dilemma referred to above may have been
worsened by the conference's ambivalence . . . Perhaps the golden lesson we
all must remember is that success without a successor is not successful.

      This was the undoing of ZAPU.
      ZAPU had a very thin leadership base and when the king makers were
removed by nature and other means, the party crumbled into oblivion, leaving
the rank and file crying foul.

      Similarly the aggressive Rhodesian Front was run like the Mafia with a
few influential individuals. There was a complacent belief that the leader
would always be there and that the status quo would remain intact.

      When the inevitable unravelling occurred, the Rhodesian Mafia crumbled
and reduced itself into writing ridiculous books about an era that very few
serious people are interested in reading about. ZANU PF risks fading into
the same fate.

      The late Border Gezi had accidentally realised the structural crisis
as well as the need for new leadership. Arguably it was him that gave ZANU
PF a new lease of life and not the farm occupations. Gezi accepted that the
synergies had collapsed between the centre and electoral bases. He
identified the problem as simply a failure of leadership, relevance and
institutional failure. His solution was the election of new leadership and
community projects. The idea died with him and ZANU PF is yet to pay the
full price for its recklessness in failing to carry this forward.

      This idea of the meaning of a party to the people is lost in the
propaganda fantasies of our politicised professors. Unless ZANU PF
effectively addresses the peasant and factory questions, it will suffer an
unprecedented fate in the history of African liberation movements, namely
total self-destruction. This can not be mitigated by violence and
propaganda.

      The recently ended Zanu PF Congress confirmed that Zimbabwe is faced
both with a crisis of leadership and the curse of uncritical follower-ship.
The Congress confined itself to grand narratives about the war, land reform
and sovereignty. Yet perhaps the only sovereignty that matters to us now is
that of affordable and free livelihoods. The only war that is worth fighting
now is the one against poverty and social degradation. In the fanfare and
sloganeering of the Congress many did not realize that change is as much a
function of a ruling party's opponents as it is that of the party's cadre.
When a ruling party becomes complacent and refuses to act courageously on
the stage of time by initiating internal reform, it faces the inevitable
pain of being swept into oblivion. Many of us believe that Zanu PF should
not be lost because it would make an interesting opposition party. Some of
its professors would stop sleeping during parliamentary sessions and do
thorough research in order to keep a new government on its toes. That is how
a true democracy ought to function ,with Zanu in the opposition.

      Some claim that Gushungo would have pulled out anyway because he wants
to control the pace of transition in Zimbabwe. He does not want the burden
of international diplomacy and having to account to his adversaries in
Europe and America. Once outside the Commonwealth Gushungo can to determine
which of the world leaders he will interact with. Unfortunately, history
tells us the only regimes that have ever found need to pull out of the
ineffective Commonwealth were rogue regimes.

      Several factors related to the Commonwealth decision and the Congress
shall certainly colour the way MDC deals with Zanu PF. Especially now that
they know that Mugabe is bent on ruling until Amen! This will have positive
ramifications in crystallizing a more nuanced MDC strategy regarding
transition and related matters. There maybe a shift in the balance of power
between the hawks and the doves in the main opposition.

      That remains to be seen, because overtures made to Gushungo have
incited insult after insult.

      The decision to pull out of the Commonwealth is a simplistic attempt
to blackmail other nations to re-instate Zimbabwe without addressing the
fundamental causes of the initial suspension .At another it was a
pre-emptive strike in anticipation of the extension of Zimbabwe's
suspension. The unanimous nature of the Commonwealth vote puts paid claims
of a western conspiracy against land reform. The decisions to pull out of
the Commonwealth will adversly affect ordinary Zimbabweans.

      In particular, their right to travel to most countries within the
Commonwealth without visas. I dare not mention the hundreds of students
applying for sponsorship to study abroad nor the impact on Companies and
other entities with trans-national activities. These factors are yet to be
fully assessed let alone understood.

      Zimbabwean exceptionalism in the current global political -economy is
a mere fantasy. There is a strong case to be made for a more equitable
global-political and economic environment and redress of the excesses of
colonialism. However, boycotting multi-lateral institutions at this point in
Zimbabwe's history is suicidal. Tying the destiny of an entire nation to the
whims of one person is absolute lunacy, even if such person were a great
leader. This is not the case in our circumstances.

      Suffice it to state that Zimbabwe is now faced with both internal and
international legitimacy crises.

      Another year of ad hoc policy measures; hunger and propaganda will not
extricate Zimbabwe out of her current crises. If anything we seem to add a
new layer of complications by our continued delay in arriving at an amicable
solution. The HIV/AIDS pandemic is worse as a result of related issues of
the crisis of livelihoods caused by our politics of chaos. Tales of the
Zimbabwean masses seem to be tales of the dead or dead citizens walking. At
some stage the ghosts of these exploited masses will come and haunt us.

      The vacuum that the current political uncertainty is creating will in
the long run result in reactionary politics and opportunistic leadership. We
can not continue to play lotto with the country's destiny.

      12/19/2003 7:01:25 PM (GMT +2)

      STAKEHOLDERS in the pig industry met last week to discuss ways of
restoring viability to the sector, which has been facing decline in
production over the past two years.

      Pig Industry Board director Paul Ndiweni told The Financial Gazette
that production has been declining in the industry due to persistent disease
outbreaks and the government's land reform programme which displaced white
commercial farmers who were major players in the industry.

      About 1 000 commercial farmers had their farms earmarked for
compulsory acquisition leading to a reduction in the pig herd.

      "As a result, stakeholders discussed the strategies to improve
viability among all stakeholders. They were targeting the entire supply
chain," he said.
      The meeting also included players from the financial sector, whom the
industry players intended to lure to boost the market.

      The outbreak of foot-and-mouth disease resulted in the banning of
Zimbabwean beef by the European Union.

      The industry has also been affected by inflationary factors and the
cost of importing maize for stockfeeds since the drying up of maize-stocks
at the state-run Grain Marketing Board.

      Local demand for pork has shrunk on the back of waning consumer
spending power and depressed incomes.
      - Staff Reporter

      12/19/2003 7:28:30 PM (GMT +2)

      ZNCC critic of the 2004 budget
      IN his 2004 budget statement, the Minister of Finance and Economic
Development, Herbert Murerwa, recognised the economic problems facing the
country and just like in previous budgets very good intentions were made to
address the economic crisis.

      However, no practical measures were announced to fulfil these
intentions.

      A number of critical issues were referred to the Reserve Bank of
Zimbabwe.

      It is our hope that these numerous references to the RBZ signify a
policy shift on the part of government to give the Reserve Bank some degree
of autonomy in determining exchange and interest rate policies, money supply
and inflation levels including currency denominations that should be in
circulation at any point in time.

      The Zimbabwe National Chamber of Commerce engaged a consultant to draw
up proposals for the 2004 budget, which was done in liaison with all our
administrative regions and other stakeholders. These proposals were
presented at a pre-budget seminar for parliamentarians held on October 22-25
2003 which was attended by the acting and deputy ministers of Finance and
Economic Development and other key stakeholders.

      The assessment of the budget will therefore be based on the
recommendations submitted at this seminar.

      The capital budget has been marginally increased from 10 percent in
2002 to 11.3 percent in 2004. While this increase in the capital budget is
welcome, there is need to substantially increase the capital budget to at
least 20 percent of the total budget to cater for the country's needs in
terms of roads, schools, hospitals, dams and other infrastructure.

      Capital expenditure has a positive multiplier effect that leads to
sustainable medium to long-term economic development, which in the long run
should see a reduction in the budgetary allocations for social welfare.

      The move to increase the tax-free threshold to $200 000 per month is a
welcome relief to taxpayers whose impact unfortunately will be short-term
given the underlying inflationary pressures.

      The Ministry of Finance should therefore consider reviewing this limit
to at least $400 000 and increase the upper threshold to at lease $1.5
million. The thresholds should also be reviewed on a quarterly basis in line
with inflationary developments. The current tax bands are also too narrow
and should be revised.

      As some companies adjust salaries frequently, workers will find
themselves in higher tax income brackets. The impact of the increase in the
tax-free portion will be short-lived. There is a difference of only $175 000
between the lower and upper limit.

      We also welcome the increase in allowances for passenger motor
vehicles and staff housing to cater for the high levels of inflation. The
increase in the provision for allowance for expenditure on schools,
hospitals and clinics to $100 million is commendable given the escalation in
the price of land and building materials. The budget however remained silent
on our proposals to remove tax on rentals as well as bank and tobacco levies
which we believe are regressive taxes.

      Recommendations were made to the ministry to:
      - review the exchange rate in line with commitments made under NERP,
increase the retention of foreign currency by exporters to between 70
percent and 80 percent,
      - harness foreign currency from Zimbabweans living abroad,
      - reduce the export threshold to 30 percent of value added products to
allow more companies to benefit from the reduced income tax of 20 percent as
a way of encouraging exports.

      The increase in the retention of foreign currency by exporters takes
into account the de-regulation in the fuel sector and the payment by most
exporters of their bills in foreign currency.

      In order to curb the illegal externalisation of foreign currency the
      Chamber urged government to fulfil its promise to introduce
pre-shipment inspection. The budget was silent on the above issues.

      It is pleasing to note that the institutional structures and
implementation modalities for mobilising foreign currency from Zimbabweans
abroad are now in place.

      The allocation of funds for the development of small and medium
enterprises is commendable. This will go a long way in assisting small
business people who are unable to access loans from banks due to the high
interest rates.

      There is however need to provide factory shells and refurbish major
markets like Mbare Musika so that small and medium enterprise operate from
decent and affordable premises. Government is also encouraged to put in
place legislation stipulating that SMEs should be paid immediately for
services/goods rendered to minimise cashflow problems and possible collapse.

      Government is encouraged to engage the international donor community
for the provision of bridging finance while measures are put in place to
increase the supply of foreign currency. The improvement in external
relations will also enable the business community to access external loans
and transact on credit terms. We however note that there is no deliberate
effort by government to engage the donor community, if any, we are actually
doing the reverse.

      In our submission we noted the need to revive the TNF process with the
objective of working towards signing a binding social contract by the three
stakeholders.

      We welcome the minister's commitment to reviving the process and hope
that future agreements will be binding on all partners.

      Deliberate efforts should be made to increase the participation of
women in the economy through improving access to means of production and
other economic infrastructure, for example, land, access to credit,
privatisation of state enterprises among others.

      Government now intends to restructure and commercialise before
considering privatisation. We therefore expect government to allow the
public enterprises to charge viable and economic prices, as this will reduce
the current burden on the fiscus.

      Introduce a tax on environmental protection, for example, a surcharge
on companies that utilise but fail to recycle inputs which may be recycled,
like glass bottles. Incentives should also be provided to those who utilise
environmentally-friendly technology.

      The revenue raised from the environmental tax together with the carbon
tax would be used in environmental protection activities. Transparency and
accountability is however required in the utilization of resources raised.

      Prospects for Zimbabwe's economic recovery lie in the need for
consistency in economic policy making and implementation. The fiscal and
monetary policy measures introduced must not be reneged upon. The 2004
budget must be strictly adhered to and monitored if the economy is to be
turned around.

      The Minister of Finance will require total support from his colleagues
for the successful implementation of announced policies.

      By Basildon Peta

Zimbabwe's government and opposition are ready to hold "talks about talks"
on the crisis in the country.

The formula was thrashed out on Thursday in a 45-minute, unscheduled meeting
between President Thabo Mbeki and the Movement for Democratic Change.

Mbeki, meeting MDC leader Morgan Tsvangirai and other opposition officials
in Harare for the first time, told them he had a commitment from President
Robert Mugabe to be serious about dialogue, according to impeccable sources.

Mbeki had earlier held three hours of talks with Mugabe during his one-day
visit to Zimbabwe.

      'I have a feeling he came here to test the waters'
He was on his way to the Comoros, where he is to discuss a power-sharing
agreement in that country on Saturday.

According to the sources, Mbeki told Tsvangirai that he had come to unlock
the dialogue between the MDC and the ruling Zanu-PF party.

He wanted to know whether the opposition would agree to talks.

Tsvangirai explained that the MDC had always been ready for dialogue.

The meeting then agreed upon a "mechanism" through which Zanu-PF's Patrick
Chinamasa and the MDC's Welshman Ncube would "design a method and agenda for
talks". Chinamasa is the minister of justice and also Zanu-PF's secretary
for legal affairs. Ncube is the secretary-general of the MDC.

The sources said Tsvangirai had suggested a foreign convener - such as South
Africa - for such meetings, but Mbeki was uncomfortable with the idea. He
felt they should try the talks-about-talks option first and "see where
things go".

Tsvangirai also told Mbeki he had doubts about Mugabe's sincerity, after
which Mbeki assured him that he had Mugabe's commitment.

The sources said Mbeki did not touch upon issues likely to be on a talks
agenda. "Substantive" matters such as a rerun of the presidential election
and Mugabe's resignation "did not come up".

Sapa reports that diplomats said the meeting with Tsvangirai appeared to
have been an afterthought. Mbeki's officials said before he arrived that a
meeting with the Zimbabwean pro-democracy leader would only take place "if
necessary", and the MDC leaders were only called to Mbeki's hotel well into
the afternoon.

MDC spokesperson Paul Themba Nyathi told reporters that the meeting was a
courtesy call. He said Mbeki had sounded out the MDC's views on how to end
the crisis, and pledged his continued support for efforts to reach a
negotiated settlement.

Mbeki had produced no new initiatives, he said.

"I have a feeling he came here to test the waters, seeing that this meeting
took place so soon after the Commonwealth summit," Nyathi said.

Last week, Zimbabwe withdrew from the Commonwealth after being suspended
over its poor governance record.

Mbeki spent about three hours with Mugabe at his official residence.

Reuters reports that Mugabe told reporters after the meeting: "I cannot say
accurately where we are regarding formal talks."

State radio quoted him as saying that informal talks were being held between
Zanu-PF and the MDC. When formal talks began, the public would be informed,
Mugabe said, according to state radio.

Nyathi said the MDC had been expecting serious initiatives after the
Commonwealth dust had settled.

The Commonwealth first suspended Zimbabwe in April last year in response to
Mugabe's victory in presidential elections a month before, which the
organisation said had been rigged.

Mbeki and Nigerian President Olusegun Obasanjo have been trying ever since
the elections to bring Mugabe and Tsvangirai together to negotiate an end to
the violence, lawlessness, famine and economic collapse that have devastated
the country for the past four years.

A first round of two weeks of talks last year collapsed when the MDC
launched a legal challenge to Mugabe's disputed election win, and since then
only informal discussions between officials of the two parties have taken
place.

Mbeki last week returned from the Commonwealth summit in Abuja, Nigeria,
enraged after failing in his bid to get the organisation to readmit
Zimbabwe.

He shocked many colleagues in South Africa last week when he accused Britain
of opposing Zimbabwe's return so that it could protect "its white, colonial
kith and kin".

He also said Western nations' demand for democratic reform in Zimbabwe was a
disguised bid to get rid of Mugabe.

Mbeki indicated support for the Harare regime's seizure of white-owned farms
when he said the four-year expulsion of about 4 000 white farmers was
"perhaps inevitable".

Mugabe's withdrawal from the Commonwealth has cast him into deeper isolation
than ever before.

The country has the highest rate of inflation in the world, running at 620
percent, the fastest-shrinking gross domestic product anywhere, and a second
year of famine is expected. - Independent Foreign Service

JOHANNESBURG Under growing pressure to justify his reluctance to condemn
Zimbabwe's authoritarian government, President Thabo Mbeki of South Africa
flew to Zimbabwe on Thursday in an attempt to persuade its leader, Robert
Mugabe, to negotiate with the country's opposition.
.
Mbeki, perhaps Mugabe's most visible ally among foreign heads of state, had
scheduled no meeting with the leaders of the opposition group, the Movement
for Democratic Change.
.
Even among Mbeki's supporters, there was little expectation that this visit,
the latest in a series of appeals over the past year, would bring any change
in Mugabe's increasingly repressive rule.
.
Mugabe, who is 79 and has been Zimbabwe's ruler for 23 years, is accused by
critics of assuming dictatorial powers and wrecking the economy by seizing
most of the country's productive commercial farms from their white owners in
the name of redressing past oppression of black Zimbabweans.
.
Mugabe has said that his critics are tools of racist leaders in the West who
are seeking to reassert control over southern Africa.
.
But his increasingly erratic rule has left Zimbabwe largely isolated, under
European and American sanctions and openly criticized by some African
leaders.
.
This month, Zimbabwe quit the British Commonwealth after an effort to rally
black Commonwealth countries on Mugabe's behalf fell short.
.
Publicly, at least, Mbeki stood solidly with Mugabe on Thursday. Speaking to
about 200 supporters of Mugabe's ruling party who were gathered at the
airport in Harare, Mbeki stressed what he called South Africa's and
Zimbabwe's shared history of oppression under white minority rule.
.
"In the African revolution, we shared the trenches together," he said,
according to Zimbabwean state radio.
.
"President Mugabe can assist to confront the problems we have in South
Africa," he added. "We can assist you to solve the problems that face
Zimbabwe."
.
Supporters say Mbeki feels he has no choice but to try to privately
influence Mugabe, because public criticism and sanctions will merely push
Zimbabwe further from the democratic fold.
.
"The responsibility ultimately lies with the Zimbabweans," his spokesman,
Bheki Khumalo, said by telephone on Thursday. "We are just a neighbor."
.
But for Mbeki, the costs of his approach appear to be rising. He was the
foremost loser this month in a battle to forestall Zimbabwe's departure from
the 54-nation Commonwealth. Zimbabwe had been suspended since March 2002,
after Mugabe won re-election in what was widely considered a fraudulent
vote. Mugabe announced that Zimbabwe would quit the Commonwealth after it
became obvious the country would not be reinstated.
.
On Monday, in a rebuke to Mbeki, Desmond Tutu, the retired South African
archbishop and Nobel Peace Prize recipient, said South Africa could not
stand by in the face of growing rights abuses in Zimbabwe.
.
Political opponents of Mbeki say he is tarnishing the celebrated record of
his political party, the African National Congress, as a champion of human
rights and democracy.
.
Richard Calland, a senior analyst with the Institute for Democracy in South
Africa, an independent non-profit group, said Mbeki's policy seemed to make
sense when it looked like there was a chance Mugabe would either share power
or step down.
.
"But over the past year, I think the balance has tipped the other way," he
said. "The South African position increasingly becomes the minority
position. To the external world, the impression is created that South Africa
and its president is an appeaser of a repressive regime."
.
The New York Times

The government and opposition leaders in Zimbabwe have agreed a mechanism
for talking about talks on the country's crisis, it emerged yesterday after
a 45-minute unscheduled meeting between Thabo Mbeki, the South African
President, and the Movement for Democratic Change.

Meeting for the first time with the MDC leader Morgan Tsvangirai and other
officials, Mr Mbeki said he had a commitment from President Robert Mugabe
"to be serious" about dialogue, according to reliable sources at the meeting
in Harare.

The meeting then agreed on a "mechanism", through which the ruling Zanu-PF
party's Patrick Chinamasa and the MDC's Welshman Ncube would sit down to
"design a method and agenda for talks".

Mr Mbeki had earlier held three hours of talks with Mr Mugabe during his
one-day visit to Zimbabwe.

Mr Mbeki and Olusegun Obasanjo, the President of Nigeria, have been trying
since last year's controversial elections to bring Mr Mugabe and Mr
Tsvangirai together to negotiate an end to the violence, lawlessness, famine
and economic collapse that have devastated the country for the past four
years.

Harare - The Zimbabwean government is hoping to implement a policing method
to control internet access in the country by June next year.

The department of information in the president's office claims individuals
and countries, especially the US and Britain, are using the internet to
spread anti-Zimbabwean propaganda.

Equipment worth more than R31m is being bought and a team of "cybercops"
will monitor computer systems 24/7.

Should this move prove successful, the government will be able to monitor
private messages and e-mails.

Strict laws on the exchange of information will be introduced to prevent
people from undermining the country's sovereignty.

A media analyst from the University of Zimbabwe said the government's plan
to control the flow of information was justified.

He said the country was being attacked more and more in cyberspace and it
was necessary to take steps to control the media.

President Robert Mugabe recently told the World Summit on the Information
Society that America and Britain were using their advanced information
technology to destabilise Zimbabwe.

President Thabo Mbeki sent shockwaves through South Africa yesterday when he
hinted that it might adopt the brutal land-grab policies of President Robert
Mugabe's regime in Zimbabwe.

South African opposition politicians were incensed by Mr Mbeki's comments at
the start of a one-day visit to Harare, where he underlined his status as
chief apologist for the Mugabe regime.

While other world leaders, including some in Africa, have distanced
themselves from the brutal Mugabe dictatorship, Mr Mbeki said he could learn
from Mr Mugabe's methods and philosophy.

"Our countries have shared common problems," Mr Mbeki said.

"As they shared the common problems of oppression, they share common
problems today.

"President Mugabe can assist us to confront the problems we have in South
Africa so that we can assist you to solve the problems that face Zimbabwe."

Opposition politicians took the remarks as a threat by Mr Mbeki of
Zimbabwe-style land invasions in South Africa.

Since the end of apartheid grievances over land have been dealt with legally
and transparently, but a common concern from the huge commercial farming
sector is of land invasions being imported from Zimbabwe.

Graham McIntosh, spokesman on Africa for South Africa's opposition
Democratic Alliance, said: "If President Mbeki thinks that Mugabe has
anything at all to teach South Africa he should repeat his words to the
Zimbabwean economic refugees living in the overcrowded flats of central
Johannesburg Hillbrow and the squatter camps of the region and see what
their response is to his claim.

"President Mbeki insults the intelligence of South African voters."

In spite of a growing chorus of domestic criticism, Mr Mbeki said he would
not change his policy towards Zimbabwe, which comprises a refusal to
criticise Mr Mugabe publicly, reviling the opposition Movement for
Democratic Change and relying on the good faith of a regime guilty of murder
and gross human rights abuses.

Before his visit, Mr Mbeki's office in Pretoria said no meeting was
scheduled with the MDC, but Mr Mbeki changed his mind at the last minute and
made a courtesy call on the party's leader, Morgan Tsvangirai, and secretary
general, Welshman Ncube.

Mr Mbeki continues to insist that talks or contact between the ruling
Zanu-PF and the MDC are continuing. But there are neither talks nor even
low-level contacts.

Mr Mbeki calls his policy "quiet diplomacy", but critics in South Africa,
including the former anti-apartheid stalwart Archbishop Desmond Tutu,
dismiss the term as cover for a policy of doing nothing.

Archbishop Tutu issued a stinging rebuke of Mr Mbeki's policy on Zimbabwe
this week, suggesting that unless it changed, Zimbabwe-style human rights
abuses would soon be taking place in South Africa.

Further evidence of Mr Mbeki's over-zealous support of the Mugabe regime
came when it emerged that South Africa had effectively bullied other
countries in the region over the issue.

After this month's Commonwealth summit in Nigeria, a statement purporting to
represent the views of the entire 14-member Southern African Development
Community was issued condemning the Commonwealth's suspension of Zimbabwe.

But Botswana, a key member of SADC, broke cover this week by issuing a
statement denying it had been involved in any such condemnation.

It turned out that the South African foreign ministry had issued the
statement after a meeting which did not include all members of SADC. The
SADC secretariat is reported to have had no knowledge of any such
condemnation.