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By Chris Buckley

ZHUONI, China, March 30 (Reuters) - A tense calm had returned to a protest-hit part of western China by Sunday, but a heavy police presence, burned out buildings and a deep rift between ethnic Tibetans and Han Chinese remained.

The demonstration in Zhuoni, in the northwestern province of Gansu -- one of several ethnic Tibetan parts of China hit by unrest after demonstrations in Tibet's capital Lhasa -- turned into a riot, as protesters smashed windows of shops and the police station.

"There was a protest about two weeks ago because Tibetan people have been unhappy with the way things are going. That's because they don't see any of the money from tourism or the government coming to them," said one monk.

"We see more money coming here, but none comes to us, so it looks like the difference between Tibetan and Han is getting bigger," he said.

Like several other monks, even in private he was wary of discussing the Dalai Lama, the spiritual leader of Tibetan Buddhism who China says orchestrated the wave of protests and is seeking to disrupt the Beijing Olympics.

The Dalai Lama, who fled to India in 1959 after a failed uprising against Chinese Communist rule, denies the charge and has repeated his position that he is seeking greater autonomy for Tibet, not independence.

Another monk said he did not believe the government's charges against the Dalai Lama, who is still revered by most Tibetans in China despite being reviled by Beijing.

"I can't believe that he could do that because it's against his own teachings," said the monk.

In a nearby village, one of several in the area whose streets bear notices urging people to give themselves up and win more lenient treatment, a Tibetan resident echoed the view that it was economic disparity, not the Dalai Lama, that caused the unrest.

"He's like a member of our family who isn't allowed to come home. You can't blame him," said the villager, named Tsairing.

Residents spoke of frustration among youth over a lack of education or opportunities in the area, which is so poor that people work their fields with wooden ploughs drawn by donkeys.

"Relations with Han haven't been so bad here. But there are some young Tibetans who can't read or write, can't find work themselves and hate to see others making money," said one Tibetan woman who gave her name as Kaili.

"I think that was the reason the protest march got violent."

RINGS OF ROADBLOCKS

The area of barren hillsides and small, mud-brick houses is home to a mix of Han Chinese, Tibetans and Hui Muslims, with mosques and Buddhist stupas and prayer flags dotting the region.

"The Dalai Lama is abroad somewhere. He hasn't been here. These were young hooligans so I don't see how it could be his fault," said Kaili.

At roadblocks, authorities were checking the identity cards of ethnic Tibetans and searching vehicles for foreigners, who security personnel have largely blocked from the area.

"It's been very tense recently with police making regular visits to the villages to urge them to inform on anyone involved in the rioting," said Tsairing.

Further north, near the town of Hezuo, a primary school was badly damaged by fire. Several dozen anti-riot police could be seen putting on their gear, though there was no sign of a confrontation.

One man with a military background said that when the paramilitary People's Armed Police went to restore order in Hezuo, People's Liberation Army forces donned police uniforms because of a lack of immediate manpower.

Tsairing said in his village more than 20 monks had been detained.

In Zhuoni, the man said 600 people were detained in the immediate aftermath of the protests, though many might have been subsequently released.

Nearly two weeks on, smashed windows had been repaired and Tibetan and ethnic Chinese traders had returned to the streets.

In the town's main monastery, sutras were being chanted and routine repairs were going on in a part of the temple complex.

Monks said there were about 160-180 lamas there, many fewer than even a few years ago, as economic change and assimilation cuts the number of families sending sons to the monasteries. (Reporting by Chris Buckley; Writing by Lindsay Beck; Editing by David Fogarty)

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