By Lindsay Beck
ULAN BATOR (Reuters) - Troops pulled back from the streetsof the Mongolian capital on Saturday and political leaderscalled for calm ahead of the lifting of emergency rule that wasdeclared after rioting over alleged election fraud.
There was no sign of the tension that gripped the capital,Ulan Bator, just a few days ago, when stone-throwing mobs setthe ruling party's headquarters on fire in a night of violencethat killed five people and prompted the president to declareemergency rule for the first time in Mongolia's history.
"The political parties do not want renewed violence," saidY. Otgonbayar, chairman of the ruling Mongolian People'sRevolutionary Party (MPRP). "The primary task at this moment isto keep people quiet and bring back normalcy."
Emergency rule was due to be lifted at 1530 GMT (4:30 p.m.British time), exactly four days after it was declared.
Workers were shovelling charcoal debris out of the MPRP'sheadquarters and authorities had erected a fence around thesoot-covered building.
But the security presence was light in Ulan Bator, withfamilies enjoying the sunshine and tourists snappingphotographs in the city's main square.
All parties held talks on Saturday to discuss the impasseover last week's election, which has delayed the formation of agovernment and dampened hopes for action to tackle double-digitinflation and pass mining agreements.
The opposition Democratic Party alleged fraud and pressedfor re-counting and a possible re-vote in some constituencies,after preliminary results showed the MPRP won a clear majorityin the 76-seat parliament, or Great Hural.
Democratic Party leader Tsakhiagiin Elbegdorj said smallerparties were also challenging the result in at least 19constituencies. According to Mongolian law, three-quarters ofthe seats -- 57 -- must be filled for parliament to convene.
The election commission said final results would probablybe made public on Monday at the earliest.
INVESTMENT
International observers say the vote in a country thatshook off decades of Soviet influence in 1990 and embraceddemocratic reform was largely free and fair.
"If irregularities were undertaken or breaches of the lawconfirmed, there should be recounting first, and then if thereis unfairness, a re-vote," said Otgonbayar.
"We were fair in these elections. We are not afraid ofre-voting or re-counting whatsoever."
The demand for a re-vote could spell more instability inthe Central Asian nation after four years of fractiouscoalition rule that has undermined economic growth and held upmining deals seen as key to lifting the country out of poverty.
Beneath the country's vast steppes and deserts lie hugereserves of copper, coal, uranium and other resources, butlarge-scale production has been held up by the lack of anagreement between the government and foreign investors.
One of the biggest projects at stake is Oyu Tolgoi, alsoknown as Turquoise Hill, a copper and gold mine backed byIvanhoe Mines of Canada and Rio Tinto.
"I fear that after the state of emergency is lifted therecould be some rioting," said Burmaa, 19, a student.
But she added that the decree should be lifted.
"It's not right to have this emergency rule any longer."
(Editing by Elizabeth Piper)