KINSHASA, May 16: Zaire'S ailing President Mobutu Sese Seko, who gave up power today, ending three decades of highly personalised rule over Africa's third largest nation.

But a government statement said that the veteran leader, fighting cancer and seven months of civil war, would retain the title of President.Laurent Kabila's rebels, who control three-quarters of the shattered, corruption-plagued nation, had yet to comment.

Government spokesman Kin-Kiey Mulumba told a news conference that Mobutu left for his northern jungle palace at Gbadolite, triggering intense speculation that he was going into exile.

``The President has ceased all intervention in the affairs of the state,'' he said.

Speaking after a cabinet meeting, he said Mobutu's emergency rule Prime Minister, General Likulia bolongo, was in charge.

The Archbishop of Kisangani, Monsignor Laurent Monsengwo, chosen a week ago as mediator, would undertake negotiations with the rebel alliance of laurent Kabila, leading to a new transitional government and later fresh elections, Kin-Kiey said.

Zaire's transitional constitution, the spokesman said, permitted Mobutu to step aside without actually resigning as President.

Sources in South Africa, whose President Nelson Mandela has been trying to broker a peaceful handover of power in Zaire, expressed initial surprise at Mobutu's handover of power.

Earlier, after a second failed attempt to negotiate an end to Zaire's war, President Mobutu returned on Thursday to his capital fearing a rebel attack and an uprising by government troops.

In Cape Town, Kabila met South African President Nelson Mandela, who was brokering peace talks, in an attempt to stave off a battle for Kinshasa following Wednesday's fiasco in the Congolese port of Pointe-Noire.

From Mandela's comments after the meeting, it had appeared that acceptance of a South African peace proposal was up to Mobutu.

``We are expecting an answer from him on Monday,'' Mandela said. He would not elaborate on details. But Mobutu gave it to them much before Monday.

Kabila had agreed to wait till Monday and ``receive another answer from President Mobutu.''

The South African Press Association had published a draft settlement proposed by Mandela that called for President Mobutu to hand over power to a transitional authority within 24 hours after signing.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.