By Anis Ahmed

DHAKA (Reuters) - Police fired rubber bullets and used batons to disperse thousands of protesters across Bangladeshi cities on Monday, and at least one person was killed and 50 wounded as a political crisis showed no sign of abating.

The latest casualties were in the capital Dhaka and enraged protesters set at least four vehicles ablaze and damaged several others, witnesses said.

Protest leaders said that a man was killed after a police car drove through a crowd that had defied a ban on demonstrations in the capital.

"It was a peaceful gathering. But the police started firing in the air, and before we realised, the police car came straight towards us," said a protest leader adding that authorities appeared to be letting the situation deteriorate so the army could be called in.

The protesters, mainly members of a 14-party alliance led by former prime minister Sheikh Hasina, are demanding the removal of the chief election commissioner and his deputies before the general election in January.

The alliance says the election officials are sympathetic towards the Bangladesh Nationalist Party of Begum Khaleda Zia, who ended her five-year term as prime minister last month.

On Monday, the interim administration headed by President Iajuddin Ahmed offered to hold talks with the leaders of the main political parties to end an indefinite transport blockade of the country that began on Sunday.

"We have decided to talk with major political parties soon in a bid to arrive at a solution to the current political situation," said Mahbubul Alam, the government's adviser in charge of the information ministry.

Iajuddin has made no public comment on the demand to remove the chief election commissioner M.A. Aziz, although Aziz himself has said he will not resign.

The caretaker government has said it would deploy the army, if needed, to keep order.

Bangladeshis consider the army a neutral force, though they have occasionally intervened in domestic politics.

SHIPS STRANDED

Supporters of Hasina massed on the outskirts of Dhaka, Chittagong and other cities despite a police ban on rallies.

At least 20 others were wounded in battles with police at Narayanganj town, 20 km (12 miles) from Dhaka, and southeastern town of Cox's Bazar on Monday, witnesses said.

A man was killed and 50 others wounded on Sunday, the first day of the transport strike that also shut down ports.

More than 60 foreign and local merchant ships have been stranded at berths and the outer anchorage at Chittagong, the country's main port, over the past two days.

In a statement on Monday, Hasina urged the caretaker government to accept and implement her demands, including removal of the controversial Aziz and his team "before it is too late".

She regretted problems caused by the transport blockade, which she said her supporters were compelled to enforce until her demands were fulfilled.

But leaders of the Bangladesh Nationalist Party announced plans for staging what they called a counter-protest from Tuesday.

Business leaders say Bangladesh faces an uphill task sustaining a 6 percent growth rate because of the political unrest. In particular, the chaos is disrupting the textile sector.

Garments are Bangladesh's main export, earning the country of 140 million people around $8 billion a year.

Mir Nasir Hossain, President of the Federation of Bangladesh Chambers of Commerce and Industry, appealed to the rival politicians to work to end the disruption.

"Export, production, investment -- all are now at a virtual standstill, threatening a severe negative impact on the country's gross domestic product," Nasir said.

(Additional reporting by Nizam Ahmed)