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Thai Premier Defiant Amid Urgent Session on Protests (Update1)

By Rattaphol Onsanit and Daniel Ten Kate

Aug. 31 (Bloomberg) -- Thai Prime Minister Samak Sundaravej rejected calls for his resignation today as lawmakers met in an emergency session to deal with protests that threaten to paralyze the government.

``They are dealing with a prime minister who is not easy to get rid of,'' Samak said today in his weekly radio show. ``I'm not scared but I am worried about the harm that is being done to our nation.''

Samak met yesterday with influential King Bhumibol Adulyadej to discuss the protest that's seen more than 12,000 people occupy his Government House office compound in Bangkok since Aug. 26. The protesters say he should resign for serving as a proxy of former Prime Minister Thaksin Shinawatra, who was ousted in a 2006 coup.

Samak's People Power Party and six coalition allies kicked off an emergency 10-hour session in Parliament today to debate a solution to the standoff, in an effort to reassert the government's legitimacy. Protest leaders said they would continue until Samak quits, by forcing airport closures and encouraging rail, power and airline workers to strike.

``It's going around and around, this side has the advantage and that side has advantage,'' said Prudhisan Jumbala, a political science lecturer at Chulalongkorn University. ``The question is whether the protesters will stop if Samak leaves, and nobody knows the answer.''

The People's Alliance for Democracy, whose protests led to the coup against Thaksin, stormed Samak's office on Aug. 26. It wants a government free from the influence or allies of the deposed premier, who fled to England on Aug. 11 to avoid corruption charges.

Airports in resort destinations Phuket and Krabi reopened today after protesters ran onto the runway and blocked access two days ago, Wicha Nurnlop, general manager of Phuket airport, said by phone. Hundreds of flights have been canceled, affecting the 15,000 passengers who move through the airport daily and hurting the island's tourism industry, he said.

`` We are closing the airports to tell them we can do this on a much, much bigger scale if they don't listen to us,'' said Sondhi Limthongkul, a protest leader, adding that they could strike again in the future at any time.

The benchmark SET Index has fallen almost 22 percent since the People's Alliance began its campaign to oust Samak on May 25, and the baht has slid 6.7 percent. Political instability has overtaken inflation as the biggest threat to Thailand's economy, the central bank said on Aug. 29.

``The people who caused airports to close are causing damage to the tourism industry,'' Samak said. ``They are smashing our rice bowl.''

Television License

Sondhi supported Thaksin's rise to power in 2001 and turned against him four years later. The media company owner claimed he'd seen that Thaksin was corrupt, while the ousted prime minister said Sondhi was upset the government didn't award him a television license.

Sondhi said it would be a ``good start'' if coalition partners joined with the opposition Democrat party. It holds 165 seats in the 480-seat Parliament, while Samak's party has 233.

``The government should stop using any kind of force and Samak should review whether he is still appropriate for the job,'' Democrat deputy leader Jurin Laksanawisit told Parliament. ``He should think that if he is still in, the country may be at risk of losing blood and lives, and may be at risk of losing democracy.''

About 3,000 pro-government protesters gathered outside of the Parliament building today to express support for the debate, Jaran Ditapichai, who led protests after the 2006 coup, said by phone. They had been rallying at a large field a few miles from Government House.

``The People's Alliance doesn't believe in democracy,'' Jaran said. ``Many of them were fighting with me for democracy for the past 40 years but now they shifted to the rightist ideology.''

Thousands more joined the protest yesterday at Government House and in the surrounding streets, where nine protest leaders facing arrest have surrounded themselves with demonstrators, including many middle-aged women, to deter police. Demonstrators danced to nationalist songs and cheered anti-Thaksin speeches a day after clashes with police left 126 injured and prompted the court to suspend a ruling ordering the protesters to leave Government House.

``Elections are good but Thaksin controls the press, so people are brainwashed,'' said Roy Supanantarerks, a 68-year-old retiree who joined the rally. ``We need to find good people to run the country.''

To contact the reporters on this story: Rattaphol Onsanit in Bangkok at ronsanit@bloomberg.net; Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net.

Last Updated: August 31, 2008 05:09 EDT

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