By Horace Helps

KINGSTON, Aug 20 (Reuters) - Jamaicans mopped up from a close encounter with powerful Hurricane Dean on Monday as leaders mulled whether to postpone national elections scheduled for next week.

Residents wielding axes and machetes hacked up fallen trees and used brooms and shovels to clear debris scattered by Dean, which triggered mudslides and blocked roads across the mountainous Caribbean island.

The Jamaica Tourist Board said the north coast resorts, the heart of Jamaica's vital tourism industry, sustained minimal damage. Both of the country's main airports, at Montego Bay and Kingston, were expected to reopen later on Monday.

Disaster officials said as many as 300,000 people may have been displaced by Dean, which hammered the south coast with heavy winds and a treacherous surf.

The core of the storm passed just to the south, sparing the island its worst, and many Jamaicans expressed relief. The eye had been expected to cross the island directly.

"I suffered minor damage to my house but my parents' house in St. Elizabeth had its roof blown off," said Marsha Banks, 22, of Kingston. "Added to that, my younger sister who was due to have a baby in September, gave birth this morning. Maybe because she was overcome by fear."

Trevor Haywood, who lost his roof and a wall at his house north of the capital, said it could have been worse.

"My life has been spared and that is most important," he said. "At one point, when the roof blew off, I thought I would see St. Peter next."

As residents surveyed damage, Jamaica's Cabinet was scheduled to meet to evaluate storm damage and decide if national elections on Aug. 27 can go ahead.

The ruling People's National Party is seeking a fifth consecutive five-year term and holds a slim lead over the opposition Jamaica Labour Party in pre-election polls.

Power was off across the island, water was not flowing from taps and public transportation was suspended.

In Port Royal, a 17th century pirate haven and now sleepy fishing village on a spit of land south of Kingston, boats washed ashore, waterfront wooden homes were crushed and tons of sand blocked the road to the mainland.

Residents rode bicycles to survey damage in the historic town of 1,000 people, only about 10 of whom heeded warnings to evacuate, officials said.

The U.S. ambassador in Jamaica has taken action to free $100,000 in initial funds for Jamaica and U.S. Southern Command has moved some ships into the area in case they are needed to help, White House spokesman Gordon Johndroe said aboard Air Force One on the way to a summit meeting in Canada. (Additional reporting by Carlos Barria in Kingston and Tabassum Zakaria in Ottawa)

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