Thaksin arrives in Cambodia, sparking tensions

PHNOM PENH (AFP) – Fugitive former Thai premier Thaksin Shinawatra arrived in Cambodia to start work as a government economic adviser Tuesday, fuelling tensions after deadly clashes between the two countries.

Thailand has expressed outrage at Cambodia's appointment of Thaksin, who was ousted in a bloodless coup in 2006, and says it will seek the extradition of the billionaire tycoon to serve a two-year jail term for corruption.

The row has plunged relations between the neighbouring countries to their lowest for years and threatens to cloud weekend talks between Southeast Asian leaders and US President Barack Obama.

Thaksin landed in a small private jet at Phnom Penh International Airport and was then escorted into the capital by a convoy of cars under tight security after his early morning arrival, said an AFP photographer at the scene.

"It is an honour for Cambodia's economic sector and we hope that Cambodians nationwide welcome him warmly," Cambodian cabinet spokesman Phay Siphan told a press conference after Thaksin's arrival.

Thaksin, the former owner of Manchester City football club, is due to address 300 Cambodian economics experts in Phnom Penh on Thursday.

Phay Siphan said Thaksin and Cambodian Prime Minister Hun Sen -- who are close friends and occasional golf partners -- would likely share a welcoming lunch, and the fugitive Thai leader was expected to stay for "two or three days".

Thailand and Cambodia recalled their respective ambassadors last week in the escalating row over the visit of Thaksin, who has been living in a variety of foreign locations including Dubai since he last fled Thailand in August 2008.

Thaksin won two elections and remains a massively influential figure in Thai politics, stirring up mass protests by so-called "Red Shirt" supporters against the current government.

His presence on Thailand's doorstep is the closest he has come since he last left fled the kingdom, a move that is likely to alarm the shaky government of Thai Prime Minister Abhisit Vejjajiva.

Thaksin insisted in an open letter published on his website late Monday that he would "not go to Cambodia to help Cambodia fight with Thailand".

"As I travel to Cambodia to discuss poverty and the world economic situation, I will try to preserve Thai interests with our friends in Phnom Penh, despite the Thai government still hounding me wherever I go," he wrote.

But tensions between Thailand and Cambodia remain high following a series of deadly skirmishes on their disputed border near Cambodia's 11th-century Preah Vihear temple, which was granted UNESCO World Heritage status in July 2008.

Thailand's Abhisit said authorities were preparing to officially request Thaksin's extradition and threatened to review the two countries' extradition treaty if Cambodia fails to comply.

"Cambodia must realise that they have triggered a conflict of interest and criticised the Thai judicial system," he told reporters.

Thai government spokesman Panitan Wattanayagorn said the cabinet had also agreed to cancel an oil and gas exploration deal with Cambodia that was signed during Thaksin's time in power.

Cambodian foreign ministry spokesman Koy Kuong said his country was "not concerned about these issues".

"We will not extradite him (Thaksin). We already clarified this case because he is a political victim," Koy Kuong said.

Thailand stepped up pressure on Thaksin Monday, accusing him of "violating" the country's revered monarchy after he was quoted in an interview as calling for the reform of royal institutions.

Thailand remains bitterly divided between Thaksin's main support base among the poor, especially in rural areas, and his foes in the Bangkok-based elite power circles of the palace, military and bureaucracy.

The visit comes just days before Thailand's Abhisit is due to chair a summit in Singapore between Obama and leaders of the Association of Southeast Asian Nations (ASEAN).