Thai military meets to discuss crisis; rules out coup

By Nopporn Wong-Anan

BANGKOK, Sept 6 (Reuters) - Thailand's military has held a meeting of senior officers to discuss the political crisis engulfing the nation, but its top general has ruled out a coup, local newspapers reported on Saturday.

Supreme Commander Boonsrang Niumpradit met chiefs of the army, navy and air force on Friday to discuss the crisis, the Matichon newspaper said.

"We were trying to come up with a possible solution, but the conversation didn't generate many ideas," Boonsrang later told local reporters.

"We can assure the public that we will not launch a coup because it will bring so many more complications. And nobody agrees with the idea."

Prime Minister Samak Sundaravej is facing a three-month campaign for his ouster and thousands of anti-government activists have barricaded themselves in his official compound for the past 12 days.

The 73-year-old premier, who came to office at the head of a coalition government in January, has offered to hold a referendum on his rule, but the activists of the People's Alliance for Democracy (PAD) have refused to let up on their campaign until he quits.

Asked if the armed forces commanders would urge Samak to consider stepping down for the country's sake, Boonsrang said: "No. It is not the time."

The Bangkok Post newspaper said Senate Speaker Prasopsuk Boondej, who is politically neutral, was trying to mediate between Samak and the PAD, but there were no signs that his efforts were bearing fruit.

The PAD, a motley collection of retired army officers, royalists and academics, has said Samak is a puppet of former Prime Minister Thaksin Shinawatra, removed in a 2006 coup.

Thaksin, still admired by rural Thais who handed him huge parliamentary majorities in return for his populist programmes, is believed to be pulling political strings from exile in London.

He is despised by Bangkok's middle class, the military and the royalist establishment, who all opposed his modernising agenda. He was also accused of abuse of power and corruption while in office.

Analysts say Samak's offer to hold a referendum makes it harder to force his ouster through intervention either by the military or by revered King Bhumibol Adulyadej, who has stepped into disputes in the past.

It was still not clear what question would be put to Thailand's 65 million people in the referendum. But Samak would likely win on the back of strong support in the countryside, where many Thais blame the protests in Bangkok for hurting the economy.

Thai stocks have fallen more than 26 percent since the PAD launched its campaign at the end of May, while the baht has plunged to a 19-month low against the dollar, although both markets have also been hurt by high inflation and the global economic slowdown.

The political crisis has also hit tourism, with airlines and hotels reporting cancellations.

But the fate of Samak's government is only a battle in what is becoming a class war, analysts have said.

The fundamental clash between followers of Thaksin and his huge following in the countryside against the traditional Bangkok-based royalist elite could take years, or even decades, to resolve, they say. (Writing by Raju Gopalakrishnan; Editing by Bill Tarrant)