Nov. 27 (Bloomberg) -- Thailand Prime Minister Somchai Wongsawat rebuffed a call from Thai Army Chief Anupong Paojinda to step down and hold early elections to end five months of protests that killed at least six people and culminated in yesterday's seizure of Bangkok's international airport.
``We need to protect and restore democracy,'' Somchai said in an address broadcast late yesterday on national television. ``The protesters are breaking laws as they are armed and have seized the airport, which is damaging the country.''
Somchai, who rejected a previous resignation call from Anupong, returned yesterday to the northern city of Chiang Mai from an overseas trip. He said the government will have a cabinet meeting today to decide on measures to restore order.
The airport's seizure, damaging the nation's key tourism industry in its busiest season, forced a confrontation that Somchai and the army had tried to avoid. Anupong refused to enforce a state of emergency declared by Somchai's predecessor in September after deadly street clashes in Bangkok.
``The government should return the power to the people,'' Anupong told reporters after meeting with business leaders and academics yesterday. ``We will not seize power. We are just making a suggestion and will let the government decide.''
Suriyasai Katasila, a leader of the People's Alliance for Democracy which is leading the protests, said Somchai should resign and accept his party's proposal to form a new government of representatives of various interest groups. Somchai shouldn't call an early election, he said.
``Dissolving the Parliament will still leave the country with social divisions,'' he told reporters at the airport late yesterday. ``Mr. Somchai should step down and pave ways for a new government with people from various interest groups.''
Continue the Seizure
``We will continue the seizure, as long as Mr. Somchai remains in power,'' Suriyasai said in remarks broadcast by television Channel 3. In addition to the airport, the PAD also occupies Somchai's ceremonial and temporary offices.
Thai stocks erased losses to end higher as investors bet on military leaders finding a positive resolution to the standoff. The benchmark SET Index added 3.37 points to 395.22. The gauge has fallen 55 percent since the protests began May 25. Thailand's baht slid to 35.27 per dollar, the lowest in 21 months, and government bonds fell, driving yields up from near a two year low.
``If not handled carefully, properly and soon, the country would tip toward anarchy,'' said Panitan Wattanayagorn, a political scientist at Chulalongkorn University in Bangkok. ``When security evaporates, you are faced with a chain of events that can't be controlled.''
Army Chief
The army chief, who helped oust former Prime Minister Thaksin Shinawatra in a 2006 coup, said protesters must leave the airport, adding that violence wouldn't solve the conflict. Somchai should make a decision soon, Anupong said, insisting that the military ``isn't pressuring the government.'' Somchai, Thaksin's brother-in-law, helms the People Power Party, which faces dissolution after one of its executive members was found guilty of buying votes. Parties linked to Thaksin have won four elections since 2001 on strong rural support for its platform of cheap health care and village loans.
The protests are headed by the People's Alliance for Democracy, a group comprised mostly of the Bangkok middle class, royalists and bureaucrats. Alliance members have blocked roads, seized buildings and wielded guns and metal bars with impunity in protests that started May 25. They want a new political system that dilutes the votes of the country's rural majority.
Protesters' Meeting
The protesters held a meeting during the night to consider the army's request that they leave the airport, a spokesman said.
Surapol Nitikraipot, rector of Thammasat University, who sat alongside Anupong at the briefing, said the government must heed the army's call to step down.
``If the government rejects our proposal, we will not listen to them,'' he said. ``We will use civil disobedience.''
Separately, protesters prompted the closure of Don Mueang Airport, according to the manager, Aniruj Tanomkulbutr.
Demonstrators were emboldened last month when Queen Sirikit attended the funeral of a protester who was killed in a clash with police. Thai King Bhumibol Adulyadej is revered as a symbol of stability in a nation that has endured 10 mostly bloodless coups since ending absolute monarchy in 1932.
``Thailand has a history of resolving these things peacefully,'' said William Heinecke, chairman of Minor International Pcl, a U.S.-born Thai citizen who has lived in Thailand for decades. ``The only potential mediator, really, is the military.''
Thailand, Southeast Asia's second-largest economy, faces its slowest growth in eight years as the political conflict saps domestic spending and the global recession hurts exports. Tourism, which comprises about 7 percent of gross domestic product, fell to its lowest level in three years after the protests turned violent in September.
Man Killed
A man was killed in clashes between political rivals in Chiang Mai after the premier arrived in the city. A series of deadly grenade attacks against demonstrators in the past two months triggered what protesters said would be this week's ``final battle.'' Police offered token resistance as armed demonstrators forced their way into government buildings and finally the airport.
About 3,000 tourists were evacuated yesterday to nearby hotels, said Serirat Prasutanond, general manager at Suvarnabhumi Airport, who said it won't reopen ``until the situation returns to normal.'' Four anti-government protesters were injured in an explosion outside the facility earlier yesterday.
``What the PAD and its backers are unleashing is an even deeper crisis in Thai society, and who knows where it will land,'' said Giles Ungpakorn, a political science lecturer at Chulalongkorn University. ``The conservatives might force through a government they want at the moment that is going to cause deep resentment.''
To contact the reporters on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net; Suttinee Yuvejwattana in Bangkok at Suttinee1@bloomberg.net
``We need to protect and restore democracy,'' Somchai said in an address broadcast late yesterday on national television. ``The protesters are breaking laws as they are armed and have seized the airport, which is damaging the country.''
Somchai, who rejected a previous resignation call from Anupong, returned yesterday to the northern city of Chiang Mai from an overseas trip. He said the government will have a cabinet meeting today to decide on measures to restore order.
The airport's seizure, damaging the nation's key tourism industry in its busiest season, forced a confrontation that Somchai and the army had tried to avoid. Anupong refused to enforce a state of emergency declared by Somchai's predecessor in September after deadly street clashes in Bangkok.
``The government should return the power to the people,'' Anupong told reporters after meeting with business leaders and academics yesterday. ``We will not seize power. We are just making a suggestion and will let the government decide.''
Suriyasai Katasila, a leader of the People's Alliance for Democracy which is leading the protests, said Somchai should resign and accept his party's proposal to form a new government of representatives of various interest groups. Somchai shouldn't call an early election, he said.
``Dissolving the Parliament will still leave the country with social divisions,'' he told reporters at the airport late yesterday. ``Mr. Somchai should step down and pave ways for a new government with people from various interest groups.''
Continue the Seizure
``We will continue the seizure, as long as Mr. Somchai remains in power,'' Suriyasai said in remarks broadcast by television Channel 3. In addition to the airport, the PAD also occupies Somchai's ceremonial and temporary offices.
Thai stocks erased losses to end higher as investors bet on military leaders finding a positive resolution to the standoff. The benchmark SET Index added 3.37 points to 395.22. The gauge has fallen 55 percent since the protests began May 25. Thailand's baht slid to 35.27 per dollar, the lowest in 21 months, and government bonds fell, driving yields up from near a two year low.
``If not handled carefully, properly and soon, the country would tip toward anarchy,'' said Panitan Wattanayagorn, a political scientist at Chulalongkorn University in Bangkok. ``When security evaporates, you are faced with a chain of events that can't be controlled.''
Army Chief
The army chief, who helped oust former Prime Minister Thaksin Shinawatra in a 2006 coup, said protesters must leave the airport, adding that violence wouldn't solve the conflict. Somchai should make a decision soon, Anupong said, insisting that the military ``isn't pressuring the government.'' Somchai, Thaksin's brother-in-law, helms the People Power Party, which faces dissolution after one of its executive members was found guilty of buying votes. Parties linked to Thaksin have won four elections since 2001 on strong rural support for its platform of cheap health care and village loans.
The protests are headed by the People's Alliance for Democracy, a group comprised mostly of the Bangkok middle class, royalists and bureaucrats. Alliance members have blocked roads, seized buildings and wielded guns and metal bars with impunity in protests that started May 25. They want a new political system that dilutes the votes of the country's rural majority.
Protesters' Meeting
The protesters held a meeting during the night to consider the army's request that they leave the airport, a spokesman said.
Surapol Nitikraipot, rector of Thammasat University, who sat alongside Anupong at the briefing, said the government must heed the army's call to step down.
``If the government rejects our proposal, we will not listen to them,'' he said. ``We will use civil disobedience.''
Separately, protesters prompted the closure of Don Mueang Airport, according to the manager, Aniruj Tanomkulbutr.
Demonstrators were emboldened last month when Queen Sirikit attended the funeral of a protester who was killed in a clash with police. Thai King Bhumibol Adulyadej is revered as a symbol of stability in a nation that has endured 10 mostly bloodless coups since ending absolute monarchy in 1932.
``Thailand has a history of resolving these things peacefully,'' said William Heinecke, chairman of Minor International Pcl, a U.S.-born Thai citizen who has lived in Thailand for decades. ``The only potential mediator, really, is the military.''
Thailand, Southeast Asia's second-largest economy, faces its slowest growth in eight years as the political conflict saps domestic spending and the global recession hurts exports. Tourism, which comprises about 7 percent of gross domestic product, fell to its lowest level in three years after the protests turned violent in September.
Man Killed
A man was killed in clashes between political rivals in Chiang Mai after the premier arrived in the city. A series of deadly grenade attacks against demonstrators in the past two months triggered what protesters said would be this week's ``final battle.'' Police offered token resistance as armed demonstrators forced their way into government buildings and finally the airport.
About 3,000 tourists were evacuated yesterday to nearby hotels, said Serirat Prasutanond, general manager at Suvarnabhumi Airport, who said it won't reopen ``until the situation returns to normal.'' Four anti-government protesters were injured in an explosion outside the facility earlier yesterday.
``What the PAD and its backers are unleashing is an even deeper crisis in Thai society, and who knows where it will land,'' said Giles Ungpakorn, a political science lecturer at Chulalongkorn University. ``The conservatives might force through a government they want at the moment that is going to cause deep resentment.''
To contact the reporters on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net; Suttinee Yuvejwattana in Bangkok at Suttinee1@bloomberg.net