UPDATE 1-Calm in Mongolia as emergency rule nears end

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By Lindsay Beck

ULAN BATOR, July 5 (Reuters) - Troops began pulling back from the streets of the Mongolian capital on Saturday and political leaders called for calm ahead of the lifting of emergency rule that was declared 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 set the ruling party's headquarters on fire in a night of violence that killed five people and prompted the president to declare emergency rule for the first time in Mongolia's history.

"The political parties do not want renewed violence," said Y. Otgonbayar, chairman of the ruling Mongolian People's Revolutionary Party (MPRP).

"The primary task at this moment is to keep people quiet and bring back normalcy."

Workers were shovelling charcoal debris out of the MPRP's headquarters and authorities had erected a fence around the soot-covered building that stands as a reminder of the riot on Tuesday that was a rare outpouring of political violence.

But the security presence was light in Ulan Bator, with families enjoying the sunshine and tourists snapping photographs in the city's main square.

All parties were to hold more talks later on Saturday to discuss the impasse over last week's election, which has delayed the formation of a government and dampened hopes for action to tackle double-digit inflation and pass mining agreements.