No deal yet on Zimbabwe power-sharing: opposition

HARARE (Reuters) - Talks between Zimbabwean President Robert Mugabe and opposition leader Morgan Tsvangirai aimed at rescuing a power-sharing deal ended without agreement on Tuesday but will resume on Wednesday, Tsvangirai said.

"There was no conclusion in the discussions. We will continue tomorrow at 10:30 (4:30 a.m. EDT)," Tsvangirai told reporters as he left a Harare hotel where the talks, mediated by former South African President Thabo Mbeki, were taking place.

The deal, brokered by Mbeki last month, is in danger of collapsing over disagreements about cabinet posts. MDC leader Tsvangirai threatened to pull out of it at the weekend after Mugabe allocated key ministries to his ZANU-PF party.

Asked if the parties made any progress, Mugabe said: "Continuing tomorrow means we have covered some area."

Arthur Mutambara, who heads a splinter MDC faction and is also taking part in the talks, said Tuesday's session was "very productive." He earlier expressed frustration over the stalled deal, which analysts say is Zimbabwe's best hope for halting a devastating economic crisis.

"The fact that we are here, bickering over cabinet posts is a travesty of justice. Mutambara, Mugabe and Tsvangirai should shape up or ship out," he told reporters.

Justice minister and ZANU-PF's chief negotiator in the power-sharing talks, Patrick Chinamasa, earlier told the state-run Herald newspaper he hoped Mbeki could offer new ideas.

"As far as we are concerned, the only contention is the Ministry of Finance," he said. Mugabe this weekend enraged the MDC by allocating the ministries of defense, home affairs -- which oversees the police -- and finance to his ZANU-PF party.

JEERS AND BOOS

Zimbabwe's parliament began meeting on Tuesday for the first time since it was officially opened by Mugabe in August amid jeers and boos from MDC members.

Mugabe's party was stripped of a majority for the first time since independence from Britain in 1980 after a March 29 election which the opposition says he rigged to retain power.

Sharp differences were evident in parliament, with ZANU-PF lawmakers praising Mugabe for agreeing to share power, while their MDC counterparts said they could walk away from the deal.

"If we are genuine ... we should share power equitably. It cannot be an inclusive government at any cost," said MDC lawmaker Sam Sipepa Nkomo. "We can't be swallowed and we should not allow ourselves to be lipstick on ZANU-PF, a decoration."

Tsvangirai defeated Mugabe in a March presidential poll held concurrently. But he did not have enough ballots to avoid a June run-off poll, which was won by Mugabe and condemned around the world after it was boycotted by Tsvangirai.

Analysts say that although the talks look doomed, the rivals are under pressure to reach a settlement, although some say Mbeki will have less leverage in Zimbabwe after being ousted as South African president by his own party last month.

A new government will have to tackle the world's highest inflation rate of 231 million percent and severe food, fuel and foreign currency shortages.

(Editing by Charles Dick)