GABORONE, Nov 16 (AFP) - Newly-elected President Festus Mogae said Tuesday his five-year term would be devoted to fighting Botswana's priority problems of high unemployment, poverty and the devastating spread of the AIDS virus.

Mogae, 61, addressed parliament for the first time since the October 16 election which his ruling Botswana Democratic Party (BDP) won overwhelmingly.

"Although unemployment has dropped from 21 percent to 19, it is an unacceptable high level," Mogae said of his diamond-rich country, with a population of 1.5 million people.

"Equally unacceptable is the large proportion of the population living under the poverty datum line... estimated at 38 percent of households (in 1997)," he said.

These problems were exacerbated by the HIV-AIDS pandemic, he said.

One in four of Botswana's adult population is estimated by the UN as carrying the HIV virus, making it one of the highest rates of infections in the world.

"Our educated and young labour force is the most badly affected," Mogae said. "There has been a huge investment in the education of these young people, who are now dying before they become productive and before we, as a society, can reap the benefits of our investment."

He said he was concerned about the "complacent attitude" of Botswana toward this disease.

"Despite, educational campaigns that government has mounted over the years, the incidence of infection continues to escalate," he said.

Once one of Africa's poorest countries, Botswana now has one of the world's fastest growing economies, thanks largely to diamond production.

It is the world's largest producer by value of diamonds, which last year provided 65 percent of government revenue and 80 percent of the country's foreign exchange reserves of about 27 billion pula (six billion dollars).

Mogae said the economy had to diversify.

Mogae first became president in April 1988 when veteran leader Ketumile Masire stepped down. His BDP has held power in Botswana since independence from Britain in 1966.

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