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    Southeast Asia
     Sep 3, 2008
Thailand teeters on the brink
By Shawn W Crispin

BANGKOK - Thailand is once again effectively under military rule after Prime Minister and Defense Minister Samak Sundaravej declared a state of emergency for the capital Bangkok in response to pro- and anti-government group clashes early on Tuesday morning. At least one person was killed and dozens injured in the pre-dawn melee.

The emergency move came after a joint sitting of parliament over the weekend failed to arrive at a compromise solution to the escalating conflict. Samak has said the move towards martial law will be temporary and is aimed at preserving democracy and restoring order. He formally issued the order from a military facility

 

rather than the Prime Minister's Office, which is now besieged by protesters.

Army commander General Anupong Paochinda will lead an emergency committee that includes the national police chief and civilian members tasked with dispersing the People's Alliance for Democracy (PAD) from its encampment around Government House, where it has been positioned since August 26 after launching coordinated attacks on different state buildings in Bangkok. Anupong told Thai reporters on Tuesday afternoon that he would not use force, that he planned to negotiate with the PAD and that the emergency decree would not include a curfew.

Samak also vowed in his address to disperse a group of pro-government protesters, which coalesced over the weekend wearing red to confront the yellow-cloaked PAD. PAD supporters contend the pro-government group was organized by Samak, and not organically, as other officials have claimed. One of Samak's "war room" advisors was seen with the pro-government group at Bangkok's Sanam Luang park early on Monday evening, before they marched to confront the PAD.

News reports showed protesters armed with clubs, knifes and slingshots and images of bloodied bodies scattered in the streets on Tuesday. A PAD leader claimed that one of the group's followers was shot by a pro-government protester during the chaotic clashes, according to news reports. At least two others were shot and the police allegedly allowed the pro-government group to encircle the PAD at government house without intervening .

More bloodshed and political confusion could come from a highly anticipated Election Commission ruling that could disband Samak's ruling People's Power Party (PPP)on electoral fraud charges. That politicized decision would potentially open the way for the opposition Democrat Party, which has tacitly backed the PAD protests, to form a new coalition government, but would also likely fuel the fires of the pro-government protest group which rampaged through Bangkok's streets early on Tuesday morning.

Even with Samak's announcement of the emergency decree, which legally bans public gatherings of over five people and allows authorities to censor media they perceive as inciting violence, the PAD has vowed to stay put and continue with its live broadcast protests over ASTV, a satellite station owned by PAD co-leader and media mogul Sondhi Limthongkul. He has announced plans to hold regular interviews with the foreign press to counteract the government's interpretation of recent events.

PAD protesters have orchestrated massive economic disruption across the country, including strategic closures of major transport infrastructure. State employees sympathetic to PAD labor leader Somsak Kosaisuk have paralyzed railway services in the southern regions. Others blocked access to three southern airports in the beach tourism heartland, temporarily causing them to shut down services. Protesters had also threatened to cut off water and electricity to government offices in the capital city.

The economic cost of the chaos is expected to mount as foreign investors head for the exit. The head of research of one major investment bank told Asia Times Online that his foreign clients now perceived the country as "ungovernable" and were quickly moving to unwind their Thai positions. "Thailand's politics were already viewed as chaotic and the latest events have pushed that perception over the edge. The country is now seen as a verifiable basket case."

A foreign exchange trader with a major investment bank in Singapore told Asia Times Online that some of his clients were starting to ask if the political and economic chaos in Thailand could soon start to adversely affect the entire region. "Thailand is becoming a focal point for investors who are looking at Asia," he said.

The Stock Exchange of Thailand closed down 2%, driving it to its lowest level in 19 months, according to analysts. The Thai baht also lost ground, slipping to 34.49, its lowest level in over a year. Traders said the baht would have likely slid further if the Bank of Thailand had not intervened to shore up the currency.

Hardline ties
Analysts and government officials contend the escalating conflict is being driven at least partially by intra-military competition, pitting hardliners against moderates. PAD leader and former army brass Chamlong Srimuang is known to have ties to a particularly hardline camp, including former Internal Security Operations Command deputy director Panlop Pinmanee and former spy chief and 2006 coup architect Prasong Soonsiri.

The nominally retired Panlop was implicated in an alleged botched assassination attempt against then prime minister Thaksin Shinawatra and has come under fire from rights groups for his alleged role in the 2004 Krue Se mosque massacre in southern Thailand. Panlop earlier denied any association with the PAD but in an about-turn last week said he would lead the protest movement and intensify its activities if his friend Chamlong were to be arrested on the treason charges now pending against him.

Some analysts note that the PAD ramped up its protests to coincide with a highly anticipated military reshuffle in which, as expected, the moderate Anupong retained his top post as army commander. The 2006 coup also coincided with a hotly contested reshuffle, where Thaksin pushed for his pre-Cadet Class 10 allies to win control over pivotal First Division positions charged with overseeing Bangkok's security.

Last year's reshuffle saw more moderate officials, including Anupong and outgoing First Army Region commander General Prayuth Chan-ocha, win out over hardliners who were expected to be further sidelined at this year's rotation overseen by Samak, which was made public on Friday. Whether that contested reshuffle contributed to the current street tensions is still unclear.

One source close to the royal palace claims that Prayuth, who was moved upstairs to the position of army chief of staff, survived an apparent sniper assassination attempt while jogging near his home over a month ago. He has frequently slept at army headquarters rather than in his own home in the wake of the botched attack, according to the same source. Prayuth could not be reached for comment for this article.

His replacement, Major General Kanit Sapitak, is believed to have close ties to both Anupong and Prayuth. His leadership over the 1st and 2nd Infantry Divisions and the 2nd and 4th Cavalry, which together oversee Bangkok's security, would be crucial to the staging of any coup. For the time being, the prospect of another military seizure of power still seems distant.

Anupong reportedly resisted Samak's earlier calls to invoke a state of emergency, which the embattled premier first drew up and proposed on Friday, according to a Prime Minister's Office source. But what happens after Thai soldiers attempt to dislodge the defiant and entrenched PAD from Government House could have long-lasting political implications, particularly if soldiers open fire on the yellow-clad crowds.

Many feared this sort of strife, pitting competing political and military cliques, might break in the power vacuum expected to be left after the highly revered King Bhumibol Adulyadej, who turns 81 in December, eventually passes from the scene. Thailand has long relied on the monarch's overarching moral authority to resolve complex political problems, including in the aftermath of the tragic events of 1992 when soldiers shot and killed hundreds of unarmed protesters.

Few now believe that a dissolution of parliament and new democratic elections would resolve the conflict precisely because the PPP or another Thaksin-aligned party would most likely win and kick start a new round of street protests. That has many people calling for the formation of a national unity government, which includes both the PPP and opposition Democrats and ideally receives strong symbolic royal endorsement.

It may yet prove to be a blessing in disguise that the competing political and apparent military interests now battling on Bangkok's streets broke out into the open while Bhumibol was still on the throne - rather than after.

Shawn W Crispin is Asia Times Online's Southeast Asia Editor. He may be reached at swcrispin@atimes.com.

(Copyright 2008 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


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