No quick end in sight to Mongolia political turmoil

ULAN BATOR (Reuters) - Private television was back on theair, alcohol on sale and restaurants open after the end ofMongolia's emergency rule, but a week after a disputed electionthe country's political problems were still far from resolved.

Prime Minister Sanjaagiin Bayar urged citizens to avoid arepeat of last week's riot, sparked by allegations of electionfraud.

That violence left the headquarters of Bayar's MongolianPeople's Revolutionary Party (MPRP) in flames and brought fourdays of emergency rule.

"This is not easy. The dust has not settled after theelection and people are still upset," Bayar said in an addresson state television.

"The parties are determined to solve the issues in apeaceful way and according to law," he said.

Preliminary results show the MPRP took a clear majority inthe parliament, or Great Hural, but the opposition DemocraticParty and several smaller parties dispute the outcome and aredemanding recounts and possible re-election in some districts.

The political uncertainty will delay formation of agovernment that would be tasked with passing agreements toallow Mongolia's vast mining wealth to finally be exploited andtackling inflation running in the double-digits.

The past week has been a test for the young, Central Asiandemocracy which shook off Soviet influence in 1990 and whoseresidents were shocked by the rioting last Tuesday which leftfive dead and troops in the streets to enforce the state ofemergency.

"I followed the events through television broadcasts.Especially for our image abroad, this is very damaging," saidUlan Bator resident Hosbayar, out with his daughter for astroll.

"It's a very uncomfortable feeling."

Some 200 people remained in detention in connection withthe riot, though another 500 have been released. Responding tocriticism in local newspapers, Bayar said those detained wouldhave access to lawyers and human rights groups.

Private television was once again on the air after afour-day ban, and in the streets of Ulan Bator, the only urbanhub in the country of windswept grasslands populated by nomadicherders, life carried on as usual.

But there was no early end in sight to the uncertainty thatwill be closely followed by foreign investors, includingIvanhoe Mines and Rio Tinto who are keen to sign a productionagreement and move forward with a massive Gobi desert copperand gold project.

Bayar said it was too early to discuss the formation of anew cabinet until Mongolia's election commission announces afinal result in the vote, a move that could come by Monday.

He also said it was still unclear that whether newelections in some areas were necessary, but that his party wasnot opposed to the idea.