May 25 (Bloomberg) -- Thailand's former ruling party, facing possible dissolution next week, welcomed comments by the king last night that the country, now run by a military- appointed government, ``needs political parties.''

King Bhumibol Adulyadej told a group of senior judges including some from the country's Constitutional Court that political parties ``must exist,'' in a speech late yesterday that was his first on politics in 13 months.

The court rules May 30 on whether Thai Rak Thai, the party founded by former Prime Minister Thaksin Shinawatra, the opposition Democrat and three other parties should be disbanded for allegedly breaking election laws in a snap poll in April 2006. The election was widely boycotted and later annulled by the courts, following another speech by the king. Thaksin was ousted in a bloodless coup in September.

The king's latest speech ``will help bring justice and peace,'' acting Thai Rak Thai leader Chaturon Chaisang said in an interview. ``We are pleased not because it will be good for us or not, but because it will be good for the country.''

Executives of Thai Rak Thai are accused of paying the other smaller political parties to run in the April 2006 election, while members of the Democrat party are accused of preventing parties from contesting the elections. Both Thai Rak Thai and the Democrat party, the country's main ruling parties between 1997 and 2006, have denied the charges.

Trouble and Damage

``If what they did was wrong, there will still be trouble on either ruling, for political parties to be dissolved or to continue their existence,'' King Bhumibol said in a televised address last night. ``Any ruling will create trouble and damage. I will also be in trouble.''

Coup leaders alleged that Thaksin's administration created ``extreme divisions in Thai society'' and have pledged to hold a new election December 16 or 23 to restore democratic leadership.

``The king is clearly terribly concerned about the impact of the verdict,'' said Professor Michael Montesano, who teaches Thai politics at the National University of Singapore. ``One possibility is that he's afraid that disbanding the parties could turn a tense situation into a violent one.''

Defense Minister Boonrawd Somtas will declare a state of emergency in Bangkok if next week's court decision sparks public protests, the Bangkok Post reported yesterday. Disorder is ``likely'' to follow the judgment, Boonrawd was cited as saying.

Protests Discouraged

Supporters of Thai Rak Thai and the exiled Thaksin shouldn't protest next week's court decision and should gather at its headquarters to show peaceful support, Chaturon said.

Thai police chief Seripisuth Temiyavej also urged Thais to avoid protesting, after a security meeting with Prime Minister Surayud Chulanont in Bangkok today.

``The king has shown concern on this, so we should listen and do what the king says,'' Seripisuth said. ``Stay at home and don't come to create problems and all will end well.''

Police ``guarantee there will be no confrontation between Democrat and Thai Rak Thai groups'' and have mobilized extra forces. ``If anything happens, we can solve it,'' he said.

Democrat Party Leader Abhisit Vejjajiva said via telephone today he wasn't immediately able to comment. Subsequent calls were diverted to his voicemail.

To contact the reporters on this story: En-Lai Yeoh in Singapore at eyeoh1@bloomberg.netBeth Jinks in Bangkok at bjinks1@bloomberg.net

Last Updated: May 25, 2007 02:26 EDT