Protesters demand Burkina Faso president quit, burn parliament

* Tens of thousands mass outside presidential palace

* Military to issue statement, opposition hold talks

* Protests over plan to extend president's rule

* Closely watched by other leaders approaching term limits

* Emergency services say at least three protesters shot dead (Adds details of talks, analyst comment, French, US statements)

By Mathieu Bonkoungou and Joe Penney

OUAGADOUGOU, Oct 30 (Reuters) - Tens of thousands of protesters demanding the ousting of Burkina Faso's veteran President Blaise Compaore faced off with security forces outside the presidential palace after burning parliament and ransacking state television on Thursday.

At least three protesters were shot dead and scores were wounded by security forces, emergency services said, as the vast crowd tried to storm the home of the president's brother and overran other state buildings.

It was not immediately possible to confirm the whereabouts of President Compaore, who seized power in the gold and cotton-producing West African nation in a coup 27 years ago.

But there were signs of political manoeuvring. The military command announced it would issue a statement later in the day and opposition leaders said they had held talks with retired General Kouame Lougue, a former defence minister, about forming a transitional government.

A Reuters witness saw General Lougue march afterwards to the presidential palace with supporters, and soldiers at the scene said he was allowed inside with a handful of aides.

Crowds stormed parliament earlier in the day in protest against a vote due on Thursday on a government plan to change the constitution to allow the president to stand for a third term next year.

As protests spread, communications minister Alain Edouard Traore said the government had dropped the plan. But opposition leaders and demonstrators said they would not stop until the president left.

"We want Blaise Compaore to leave. We want change," said George Sawadogo, a 23-year-old student.

Any move to depose Compaore, an ally of the United States and former colonial power France, would be closely watched by other governments across West and Central Africa, where a number of long-serving leaders are reaching the end of their constitutional terms.

Black smoke swirled in the air above parliament after demonstrators lit fires inside the building before looting computers and televisions screens and wheeling away police motorbikes, a Reuters reporter said. The headquarters of the ruling Congress for Democracy and Progress (CDP) party was also gutted by fire.

At the headquarters of state television, which was forced off the air after the building was taken, jubilant protesters posed on the set of the evening news programme. Soldiers deployed outside state radio with an armoured personnel carrier to defend it from the crowd.

"The people have done most of the work. Now (NYSE: DNOW - news) is the time for the soldiers to come to talk to us. We are waiting for General Lougue," said one protestor, who asked not to be named, in the Place de la Nation, a vast open space in the centre of Ouagadougou that was packed with demonstrators.

"It is absolutely necessary for Blaise Compaore to leave power and for a transitional government to take over," said senior opposition figure Simon Compaore who is not related to the president. "Talks are taking place with General Lougue ... but there is no agreement yet," he added.

Large protests also erupted in Bobo Dioulasso, Burkina's second biggest town, and Ouahigouya, in the north of the landlocked country, which is surrounded by six other nations in the volatile Sahel region.

WASHINGTON, PARIS CALL FOR CALM

White House spokeswoman Bernadette Meehan said in a statement that the United States was deeply concerned by the deteriorating situation in Burkina Faso and called on all parties to end the violence.

France, which has a special forces base there that conducts operations across the Sahel, also appealed for restraint by all sides. Local media reported that the French ambassador met opposition leaders.

Burkina Faso is one of the world's poorest nations but has positioned itself as a mediator in regional crises. It is also a key ally in Western operations against al Qaeda-linked groups in West Africa.

Compaore has ruled the nation with a firm grip but has faced increasing criticism in recent years, including defections by members of his party. He weathered a military and popular uprising in 2011 thanks to the support of his elite presidential guard.

Diplomatic pressure had mounted over the past year for Compaore to step down in 2015, amid calls from his own entourage for him to seek re-election, diplomats said.

Domestic opposition to his government hardened dramatically after it confirmed on Oct. 21 that it would seek a constitutional change.

Hundreds of thousands of people took to the streets across the country on Tuesday in what the opposition said was the start of a campaign of civil disobedience.

Burkina Faso, the fourth largest gold producer in Africa, has attracted several goldminers including TrueGold, IamGold (Xetra: 899657 - news) and Randgold Resources. (Additional reporting by Daniel Flynn, David Lewis and Bate Felix in Dakar, Joe Bavier and Ange Aboa in Abidjan, John Irish in Paris; Writing by Daniel Flynn, editing by Andrew Heavens)