Vote count begins after East Timor elections

DILI, July 1 (Reuters) Vote counting began today after the people of East Timor voted to choose a parliament that could help the young, poor nation get back on track after the euphoria of independence was shaken by communal bloodshed last year.

Yesterday's election in the former Portuguese colony and the month-long campaign period preceding the poll passed off mostly peacefully, helped by the presence of 1,700 UN police and a force of Australian-led troops.

Under a new system, ballot boxes from polling stations were transferred to district counting centres, using helicopters in remote spots, particularly after heavy rains in parts of the country washed away roads.

Officials say preliminary results may emerge by early this week after this third election in three months in a country slightly smaller than Hawaii, following a presidential vote and run-off.

''For the most part, polling has proceeded smoothly and without incident across Timor-Leste,'' said a statement by the election organising body on Saturday evening, using East Timor's official name.

The Technical Secretariat for Electoral Administration, which had U.N. help administering the polls, added that early estimates pointed to a lower turnout than in this year's previous polls.

Fourteen parties contested the vote, widely regarded as a showdown between the ruling Fretilin party and CNRT, a party launched by Xanana Gusmao.

MORE HANDS-ON After serving as the country's first president, Gusmao -- a charismatic hero of the resistance to the decades of Indonesian occupation that followed Portugal's withdrawal in 1975 -- now wants the more hands-on post of prime minister.

The Fretilin government sacked 600 rebellious soldiers to trigger violence last May that killed 37 people and drove 150,000 from their homes.

Foreign troops were brought in to restore order, with Australia providing the largest contingent, but sporadic violence and unrest have continued.

Although the polls appeared to go smoothly, officials noted some problems, including a brief attack on a polling station in Viqueque, while one person was arrested at a polling station in Ermera for carrying arrows.

Mari Alkatiri, secretary general of Fretilin, said after voting in the capital on Saturday he was confident his party would win and urged all East Timorese to accept the result.

''Fretilin will form an inclusive government and will see to peoples' necessities and restore security,'' said Alkatiri, who stepped down as prime minister after last year's turmoil.

CNRT spokesman Dionisio Babo also expressed confidence.

Nearly 500 foreign observers monitored Saturday's polls.

Most analysts do not expect either Fretilin or CNRT to win a clear majority in the 65-seat parliament.

President Jose Ramos-Horta told Reuters in an interview on Friday that East Timor's leaders needed to unite to fight poverty and improve security.

East Timor voted overwhelmingly for independence in a 1999 ballot tainted by bloodshed blamed mostly on pro-Indonesian militia and Indonesian military elements.

The tiny, predominantly Catholic nation became a full-fledged nation in 2002 after a period of UN administration.

East Timor is one of the world's poorest countries but is starting to tap rich energy resources that over time could significantly raise living standards.

Reuters DH VP0755