By Ibrahim Mohamed and Abdi Sheikh

MOGADISHU, Aug 30 (Reuters) - A Somali reconciliation conference seen by many as the best hope for peace in the Horn of Africa nation ended on Thursday with a raft of resolutions but no visible impact on a raging insurgency.

The Somali government and 2,000 delegates attending the talks at an old police compound in north Mogadishu were upbeat.

"This is a success," said Muse Kulow, spokesman for Prime Minister Ali Mohamed Gedi, before Gedi and President Abdullahi Yusuf headed for the heavily guarded venue, targeted several times by mortar attacks since talks began on July 15.

"We proved that we can meet in our country. The government is ready to implement all the agreements they reached. The talks are a good way to start restoring peace."

Delegates, including African diplomats and representatives of all Somalia's main clans, agreed points ranging from terms for a clan truce, to the sharing of natural resources in the nation of 9 million, and elections planned for 2009.

But with Islamists and other opponents boycotting the talks, and no letup in the daily violence, analysts think peace is a tall order in a country awash with guns.

Hours before the closing ceremony, insurgents attacked three police bases in Mogadishu, prompting the government to flood the city with security forces as foreign delegates arrived.

Violence and anarchy have been the norm in Mogadishu since warlords overthrew a dictator in 1991.

But clashes have worsened since December, when allied Somali-Ethiopian troops kicked out Islamist fighters who had restored some order to the city, sparking a deadly insurgency.

"FRUITLESS"

The talks triggered an upsurge in attacks by Islamist rebels, who have been joined by some factions of the city's dominant Hawiye clan.

Exiled opponents of the transitional government, including Islamist leader Sheikh Sharif Sheikh Ahmed, are to hold a rival "reconciliation conference" on Saturday in Eritrea, whose government has been accused of backing the Islamists.

Mohamed Hassan Had, chairman of an anti-government Hawiye faction, urged Somalis to oppose the government, saying it did not represent the people.

"The Somali peace conference was fruitless. It was not meant to restore peace because government rivals were absent from the talks. We need an all-inclusive national conference mediated by a neutral country," he said.

Yusuf and Gedi say all factions were invited to the reconciliation talks.

Had's clansman Abdullahi Sheikh Elmi, who attended the meetings, said some Hawiye wanted to go mainstream.

"We plan to turn the Hawiye into a political party which will be open to other interested Somalis to join," he said.

"Hawiye clan elders are opposed to the presence of Ethiopian troops in our county, but we still have to be engaged in peace." (Additional reporting by Aweys Yusuf)

AlertNet news is provided by