"Early last year, the Chief Justice reminded me that February 14, 2005, three days from today, will mark the 10th anniversary of the inauguration of our Constitutional Court.

"He felt then that 10 years was a long time for one person to hold office as the head of our apex court, as he has done.

"He therefore thought it right and proper that he should take advantage of the beginning of the second decade of the Constitutional Court to retire from the Bench."

Mbeki said he had agreed they should meet again at the beginning of this year to consider the matter, which they did.

"Chief Justice Chaskalson has convinced me that his own determination to continue to contribute to the birth of our nation, rather than personal considerations, dictates that he should relinquish his high post.

"I have listened carefully to his moving argument and was similarly moved to agree to his request."

It had therefore been agreed that Chaskalson would be discharged from active service in the judiciary on May 31 this year.

Mbeki said he would now take the necessary steps to consult the Judicial Service Commission and the leaders of the political parties represented in Parliament to determine who the next Chief Justice would be from June 1.

"I am privileged to have the opportunity on this important occasion on our national calendar to convey our thanks to, and salute a great son of our people, Chief Justice Arthur Chaskalson.

"I trust that later this year Parliament will give all of us an opportunity to bid this giant among the architects of our democracy the fitting farewell that the constraints of time today prohibit," he said.

Meanwhile, South Africa closed year-long celebrations marking a decade of democracy with an extravaganza of music and dance at a Cape Town stadium that was once the venue of anti-apartheid rallies.

"When we celebrate 20 years of freedom we should do so as a developed, prosperous and united nation," Mbeki told the huge crowd, appealing for greater harmony in a land still scarred by memories of racial segregation.

"We need to relate to each other as fellow human beings ... and not as aliens being only related by the fact that we populate the same land mass. This is the challenge for the next decade," he said.

The evening festivities followed Mbeki's address to Parliament and coincided with the 15th anniversary of the release of former president Nelson Mandela, then African National Congress leader, after 27 years in prison.

Mbeki told the audience to use "people's power" to confront daily challenges ranging from drug abuse and crime to bad schools and corruption as well as lingering racism in its society.

The concert was to be the culmination of a year of celebrations to mark South Africa's first multiracial democratic elections in 1994. - Sapa-AP