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WORLD> Asia-Pacific
Thai troops surround protestors after 2 killed in clash
(Agencies)
Updated: 2009-04-14 09:58

Peaceful Means

The demonstrations have further hobbled a country reeling from political chaos last year and the global financial crisis.

Rating agencies Standard & Poor's and Moody's, both of which already have a negative outlook on Thailand's sovereign ratings, said the renewed political unrest increased the risk of a downgrade.

Thai troops surround protestors after 2 killed in clash
A demonstrator calling for a stop to the violence between government troops and supporters of ousted Thai prime minister Thaksin Shinawatra distributes roses to soldiers in Bangkok April 13, 2009. [Agencies]

"Tourism can rebound, but investor confidence will be very hard to get back," said S&P analyst Kim Eng Tan. "Going forward we expect investors will become a lot more risk averse."

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Thailand's top military commander, General Songkitti Chakabakr, said in a televised statement on Monday that the committee charged with restoring order would strive "through every peaceful means" to bring the situation back to normal as soon as possible.

On Saturday protestors forced the cancellation of a high-profile Asian summit in Thailand, a big embarrassment for Abhisit, who took office only in December.

"I believe the darkest days in Thailand's history are yet to come as we see no swift solution to ongoing divisiveness," said Prinn Panitchpakdi, a CLSA Asia-Pacific analyst.

Several countries issued cautionary advisories on travel to Thailand.

The violence on Monday began before dawn, at the start of the Thai New Year holiday, much of it near one of the city's central traffic hubs, Din Daeng junction, which protestors had blockaded.

Last year politicians backed by the "Red Shirts" were in power and royalist "Yellow Shirts," supporters of those now in government, held nearly non-stop protests, culminating in a week-long occupation of Bangkok's main airport.

The political strife died down for a while after Abhisit came to office through parliamentary defections that Thaksin supporters say the army engineered. They demand a new election.

Protests flared anew after Thaksin, living in exile to avoid jail on a corruption conviction, said Abhisit must resign by April 8 -- the day before Thailand was to host the now abandoned East Asia Summit in the beach resort of Pattaya.

Thailand has had 18 coups since 1932 and the military often has the final say in Thai politics, sometimes with the blessing of the king.

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