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Zimbabwe's ruling party and opposition have been unable to reach a power-sharing agreement at a regional summit of Southern African leaders.
Asked if a deal had been reached in Johannesburg, a spokesman for the main opposition leader Morgan Tsvangirai said: "No, not at all".
However, South African President Thabo Mbeki said after the official summit closed that talks would continue.
Hours earlier, Mr Tsvangirai said the talks had been going "very well".
Mr Mbeki is the regionally appointed mediator for Zimbabwe, and the latest talks took place at a summit of leaders of the 14-member Southern African Development Community (Sadc).
As the summit formally ended, Mr Tsvangirai's spokesman, George Sibotshiwe, told reporters: "There is no deal yet."
Mr Tsvangirai is said to have agreed in principle for Mr Mugabe to retain the title of president, while he takes on a beefed-up prime ministerial role.
The key sticking-points are reported to be over the exact balance of power.
In other business at the summit, the Sadc agreed to launch a regional trade zone aimed at eliminating import tariffs, with plans for a common currency by 2018.
Zimbabwe is among 11 Sadc countries who will participate in the trade zone. Angola, the Democratic Republic of Congo and Malawi plan to join at a later date, AFP news agency reports.
Red lines
Mr Mbeki said that some Sadc leaders would continue to discuss Zimbabwe after the close of the summit.
Mr Tsvangirai finished ahead of Mr Mugabe in the first round of Zimbabwe's presidential election in March and his Movement for Democratic Change (MDC) also won a majority in parliamentary elections.
But Mr Tsvangirai pulled out of the second round of the presidential election, citing a campaign of violence against his supporters. Mr Mugabe went on to win the vote unopposed.
Mr Tsvangirai told the New York Times that the most basic issue of how he and Mr Mugabe would share power remained unsettled, and there were limits to the compromises he could make.
“It's better not to have a deal than to have a bad deal,” Mr Tsvangirai told the newspaper.
Sticking-points in the power-sharing talks are reported to include
• the balance of power between Mr Mugabe and Mr Tsvangirai
• the make-up of any coalition cabinet
• control of Zimbabwe's security forces
• the possibility of an amnesty over post-election violence
Mr Tsvangirai had a seat at the summit with other invited guests on the floor while President Mugabe joined other regional leaders at the head table.
Arthur Mutambara, head of a breakaway MDC faction, also attended.
Pressure on Mbeki
Some critics believe regional leaders' handling of the Zimbabwe crisis has reflected badly on them.
Events in Zimbabwe were a "blot on the culture of democracy", Zambia said.
The rare public criticism, attributed to Zambian President Levy Mwanawasa, comes after Botswana's president decided to boycott the summit in protest.
Zambia's Foreign Minister Kabinga Pande said the "regrettable events" in Zimbabwe had "no doubt left a serious blot on the culture of democracy in our sub region.
"These events... brought into question Sadc as an institution capable of promoting the rule of law and democratic governance," he said, speaking on behalf of President Mwanawasa, who is in hospital after suffering a stroke.
Source: BBC
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