Renamo's demands

Power sharing No discrimination in public services Political prisoners must be released

Renamo had refused to recognise Mr Chissano's victory in last December's elections accusing the ruling party of rigging the vote, the second since the warring sides signed a peace accord in 1992 to end their 16-year civil war.

In the joint statement issued after the talks, Mr Dhlakama was reported to have referred to Mr Chissano as "the president of the republic" for the first time.

However a senior Renamo official, Vincente Ululu said despite the political settlement between the two leaders, much needed to be done to end their bitter differences.

Agreements

President Chissano and Mr Dhlakama reached a number of agreements, including that the president would in future consult Renamo over appointments at district and provincial levels.

President Chissano faces increasing political tension

They agreed to establish a team to examine cases of alleged discrimination against Renamo members.

Renamo also demanded that all political prisoners, detained during recent political demonstrations, should be released.

Mr Ululu warned that the opposition group could withdraw its recognition of the government if agreements were not implemented.

Earlier this year, Mr Dhlakama whose party together with nine other opposition parties won 117 of the 250 parliamentary seats, threatened to form his own government in his powerbase in central Mozambique.

Handshake

During Wednesday's talks, the two leaders shook hands for the first time as they pledged to shore up Mozambique's fledgling democracy.

Mr Dhlakama says mass protests could begin again

"We are shaking hands for the first time. The fact of us being together means that we are here to solve our problems that erupted during the elections," Mr Dhlakama told the press.

President Chissano said another meeting was planned for January in a continuing dialogue to ensure Mozambique would solve its problems without external intervention.

"This will strengthen democracy in our country and we will continue to be the example to the world that we were," said Mr Chissano.

Protests

Just two weeks ago, opposition MPs jeered throughout President Chissano's state of the nation address in the capital Maputo .

Protests last month in opposition strongholds in the north of the country saw at least 40 people killed in clashes between demonstrators and police.

Tensions were further exacerbated when 82 people died in a prison in Montepuez where supporters of the opposition Renamo party were rounded up by police after the riots.