Zimbabwe's President Robert Mugabe, left, and his wife Grace greet delegates at Mugabe's ruling ZANU PF party's 10th annual Congress in Bindura, Zimbabwe, Friday. (Associated Press)

Zimbabwean President Robert Mugabe vowed Friday he would never surrender authority as opposition leaders warned power-sharing talks are in danger of collapse.

Mugabe, who is facing renewed international criticism amid a cholera epidemic in the African nation, was blustery and defiant at his ZANU-PF party's annual convention in Bindura, 90 kilometres northeast of the capital, Harare.

"I will never, never sell my country. I will never, never, never surrender," Mugabe said. "Zimbabwe is mine, I am a Zimbabwean, Zimbabwe for Zimbabweans. Zimbabwe never for the British. Britain for the British."

His comments come a day after Jendayi Frazer, U.S. assistant secretary of state for African affairs, said Zimbabwe is in "complete collapse."

"We think that the person who has ruined the country … that he needs to step down," Frazer said. "We're watching Zimbabwe become a failed state. We need to act now, proactively, in Zimbabwe."

Mugabe said African nations are not "brave enough" to order a military intervention.

"What the Americans want just now is the removal of President Mugabe. But President Mugabe has been elected by his people and we have told them as we have told the Europeans that the only persons with the power to remove Robert Gabriel Mugabe are the people of Zimbabwe," he told party delegates.

Opposition alleges kidnappings

Mugabe was defeated in presidential elections earlier this year by opposition leader Morgan Tsvangirai, but state election officials said the election results were not clear and ordered a runoff vote.

Tsvangirai, who leads the Movement for Democratic Change, eventually withdrew from the second vote over threats of violence from Mugabe supporters.

Mugabe and Tsvangirai agreed to form a unity government three months ago but have been deadlocked since over how to share cabinet posts.

During a news conference Friday in Gaborone, Botswana, Tsvangirai said more than 42 members and supporters of his party have been kidnapped by members of the ruling ZANU-PF in the past two months.

"If these abductions do not cease immediately, and if all the abductees are not released or charged in a court of law by Jan. 1, 2009, I will be asking the MDC's National Council to pass a resolution to suspend all negotiations and contact with ZANU-PF," said Tsvangirai.

"The MDC can no longer sit at the same negotiating table with a party that is abducting our members and other innocent civilians and refusing to produce any of them before a court of law."

$10-billion bank note

Botswana and Kenya have called for military intervention, but South Africa believes a unity government is the best way to end the crisis.

More than 1,100 people in the country have died from the cholera outbreak, roughly 20,000 more are infected, and half of its 10 million residents are in danger of imminent starvation, says the United Nations.

Zimbabwe has steady food and fuel shortages, is in its 10th year of recession and the inflation rate is the world's highest, at 231 million per cent. Economists speculate the rate is higher and say prices double almost daily.

The country's central bank on Friday introduced a new $10-billion Zimbabwe dollar bank note in order to keep up with inflation.

With files from Associated Press and Reuters