  We construct a lattice model of compact (2+1)-dimensional Maxwell-Chern-
Simons theory, starting from its formulation in terms of gauge invariant
quantities proposed by Deser and Jackiw. We thereby identify the topological
excitations and their interactions. These consist of monopolo- antimonopole
pairs bounded by strings carrying both magnetic flux and electric charge. The
electric charge renders the Dirac strings observable and endows them with a
finite energy per unit length, which results in a linearly confining string
tension. Additionally, the strings interact via an imaginary, topological term
measuring the (self-) linking number of closed strings.
