DHAKA, Nov 8 (Reuters) - One of Bangladesh's two main political parties, the Awami League, warned on Saturday the country would plunge into deeper political uncertainty if a parliamentary election due next month is delayed or cancelled.

The Awami League has launched election preparations in earnest after party chief Sheikh Hasina, a former prime minister, returned home on Thursday after receiving medical treatment in the Unites States.

"Guard against any conspiracy or attempt to delay or cancel the Dec. 18 election, because it would seriously affect hopes for restoration of democracy and make the country's future all the more uncertain," Syed Ashraful Islam, acting general secretary of Awami League, said.

"If it is not held in December, it may not be held in the next five years," he told party leaders and workers at Gazipur, 40 km (25 mils) north of Dhaka.

By Saturday, more than 3,000 party aspirants had collected documents to apply to contest parliament's 300 seats, Awami leaders said. The applications would be scrutinised in the next few days to choose 300 candidates.

The head of Bangladesh's other main party, the Bangladesh Nationalist Party (BNP), said on Friday her party would take part in the election only if the interim government accepted all its demands.

Former Prime Minister Begum Khaleda Zia on Friday said the authorities had failed to create a promised level playing field for all parties to enter the race.

Those include an immediate end to nearly two years of emergency rule imposed by the army-backed interim authority, allowing people convicted or arrested for corruption to contest the vote and scrapping all charges against them.

Awami League also wants an end to emergency rule and rights for those detained or sentenced on corruption charges, pending decisions by courts on their appeals.

Hossain Zillur Rahman, an adviser (minister) to the interim government and chief negotiator with the rival political parties, said on Saturday he hoped the government would be able to "create an atmosphere of trust and confidence" so that all parties could join in the election.

The government, headed by former central bank governor Fakhruddin Ahmed, took over in January 2007 following widespread political violence, cancelled an election due that month, imposed the emergency and launched a drive against corruption.

It has repeatedly assured the parties the election would be free, fair and credible.

BNP secretary-general Khandaker Delwar Hossain asked party leaders and activists on Saturday to prepare for "both election and movement," whichever the situation over the next few weeks might warrant.

"Be ready for anything, an election if they fulfil our demands, or a movement (against the interim authority) if they don't," he said. (Reporting by Anis Ahmed; Editing by Charles Dick)

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