East Timor's ruling party ahead in early vote count

DILI, July 2 (Reuters) East Timor's ruling party took an early lead today over a party launched by resistance hero, Xanana Gusmao, after a weekend parliamentary ballot in Asia's youngest nation.

Vote counting had gone more slowly than expected, said a national election commission spokeswoman, blaming squabbles over the presence of party agents at tabulation centres.

More than 100,000 votes had been tallied so far, giving the ruling Fretilin party about 33 per cent and CNRT, the party launched by former president Gusmao, 23 percent, Angelina Maria Sarmento told a news conference. Just over half a million voters were eligible to vote in the poll, the third in three months, after a presidential vote and run-off.

''There is no data available from Dili yet and the process of receiving ballots is not yet concluded in Covalima and Bobonaro districts,'' said Sarmento, adding it was still impossible to estimate voter turnout.

Fourteen parties contested the vote, but as expected it is proving to be a showdown between Fretilin and CNRT. Analysts do not expect any single party to win a majority in the 65-chamber parliament, meaning coalitions will have to be formed.

Saturday's election could help put the former Portuguese colony, which is one of the world's poorest countries, on a new path after factional bloodshed broke out last year forcing tens of thousands of people to flee their homes.

MOSTLY TROUBLE-FREE The month-long campaign was mostly peacefully, helped by the presence of 1,700 UN police and a force of Australian-led troops.

The European Union observer mission endorsed the poll.

''The campaign ran in a generally peaceful atmosphere, despite some isolated, serious incidents,'' said Javier Pomes Ruiz, the head of the mission, referring to killing of two people during a campaign rally in early June in Viqueque district.

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, but sporadic violence and unrest have continued.

Jose Manuel Fernandes, a Fretilin parliamentary candidate, expressed confidence.

''We are confident that we can win. The reality shows that we are getting majorities in all districts except Dili,'' he said, adding that all East Timorese should accept the results.

Dionisio Babo, secretary general of CNRT, also said he was confident.

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 SKB VC1250