(adds suspension of blockade, quotes and details)

By Nizam Ahmed

DHAKA, Dec 4 (Reuters) - Bangladesh's interim government announced changes on Monday to the supervision of next month's parliamentary polls after rival political groups exchanged gunfire that killed three and wounded 50.

The interim government asked the election commission to set a new election date and clean up the rolls of voters.

That was a key demand of Sheikh Hasina's Awami League, the opposition party for the past five years, which had organised a transport blockade that paralysed the country for two days.

The Awami League and its allies suspended the blockade, imposed for the fourth time over the past month, after the decision of the interim government.

"In the wake of the latest development we hereby declare suspension of the transport blockade, but will reimpose it if the election commission fails to act accordingly," Hasina told a news conference.

But she said her alliance would hold a protest near the election commission on Tuesday to press for a new election timetable.

Political violence has mounted in the impoverished country of 140 million people ahead of the elections.

A gunbattle on Monday between Awami League supporters and Khaleda Zia's Bangladesh Nationalist Party (BNP) -- whose five-year term expired in October -- raged for an hour on Maheshkhali island, 350 km (220 miles) southeast of capital Dhaka, senior administrative officer Aminul Islam said.

The bullet riddled body of an abducted tribal leader of the BNP, was found on Monday at a spot near Rangamati hill town, 380 km southeast of Dhaka.

IMPARTIALITY

The interim administration that is running the country during the election period to try to ensure poll impartiality asked the election commission to announce a new polling schedule and purge fraudulent names from the lists of voters, said Mahbubul Alam, the interim head of the information ministry.

The commission earlier set the voting date for Jan. 21, the last day for filing nominations as Dec. 10 and withdrawal of applications on Dec. 19.

"BNP will have no objection if the steps of the interim government are within the provisions of the constitution," said M. Morshed Khan, senior BNP leader and former foreign minister told reporters.

The interim authority has also decided to shuffle some senior government officials to further "neutralise the administration ahead of the election" and discussed restructuring the election commission, Alam told reporters, without giving details.

An overhaul of the elections commission was another key Awami demand. It was expected that seven or eight officials would be moved to more junior posts to try to stem accusations of bias towards Khaleda.

The latest moves came as U.S. Deputy Assistant Secretary of the State Department for South Asian Affairs, John A. Gastright, held talks with government officials on the political situation.

"We offered our strong support to the caretaker government in its efforts to move forward with a free, fair and non-violent election," he told reporters.

Khaleda handed over power to the caretaker authority at the end of her term in late October. The constitution dictates a general election must be held within three months of the change over.

Officials say 44 people have been killed in five weeks of political unrest and hundreds injured. (Additional reporting by Nurul Islam)

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