Cambodia refuses Thai demand for Thaksin extradition

PHNOM PENH (AFP) – Cambodia rejected a request by Thailand to extradite fugitive former premier Thaksin Shinawatra Wednesday, deepening a rift over Phnom Penh's appointment of the tycoon as an economic adviser.

Thai diplomats handed over papers for the extradition of the billionaire, who was ousted in a 2006 coup and lives in exile to avoid a jail term for graft, but seconds later Cambodian officials gave them a formal refusal letter.

"This response letter is enough to tell the foreign affairs ministry of Thailand that there will be no extradition," Cambodian Prime Minister Hun Sen said at a televised press conference with Thaksin at his house near Phnom Penh.

Hun Sen -- a close ally and occasional golfing partner of Thaksin -- said the charges on which the ousted Thai leader had been sentenced in absentia to two years in prison were politically motivated.

"You see, some leaders have been toppled during times of provocation but Thaksin was toppled during a time he was on a mission for his nation. So he is a political victim of the coup d'etat of 19 September, 2006," Hun Sen said.

The Cambodian leader added that he would not discuss Thaksin's new advisory role if he meets Thailand's prime minister at a summit of regional leaders with US President Barack Obama in Singapore on Sunday.

Thaksin arrived in Cambodia by private jet on Tuesday and is due to give a speech to 300 Cambodian economics experts and visit the famed Angkor Wat temple on Thursday. Reports say he and Hun Sen may also play a round of golf.

"I really would like to help my people. But I think helping my neighbour is like helping my people indirectly," Thaksin told the news conference, accusing the Thai government of having a "Cold War mentality".

In Bangkok, Thai Prime Minister Abhisit Vejjajiva condemned Cambodia's refusal to send Thaksin back and said that he had halted more aid programmes for the neighbouring country, which is still impoverished after decades of war. Related article: Thaksin visit could push Thailand and Cambodia to war, say analysts.

"My government wants bilateral ties to be normal, but Cambodia's political standpoint is incorrect, inappropriate and against international principles," Abhisit told reporters.

He said Thaksin was trying to "maintain his personal interests".

Thailand and Cambodia recalled their ambassadors last week as the row escalated. Bangkok also put all talks and cooperation programmes on hold and tore up an oil and gas exploration deal signed during Thaksin's time in power.

Tensions were already running high between the two countries following a series of clashes on disputed land around the 11th-century Preah Vihear temple on their border.

The temple, awarded to Cambodia by the World Court in 1962, has been a flashpoint since it was granted UNESCO World Heritage Status in July 2008.

Despite the escalating diplomatic row, the mood remained calm at the frontier and Phnom Penh withdrew an elite paratrooper unit from the area Wednesday morning, a Cambodian commander said.

Twice-elected Thaksin fled Thailand in August 2008 but he has retained huge influence in Thailand by stirring up protests against the current Thai government. Related article: Thaksin profile.

Analysts say that in his close friend Hun Sen he had found a new way of pushing his campaign for a return to power but risked losing support at home.

"He is carrying on his crusade but using Thailand's national dignity as a pawn and even his supporters might think twice about that," said Thitinan Pongsudhirak, a political analyst at Bangkok's Chulalongkorn University.

Thailand's government upped the pressure on Thaksin this week by accusing him of offending the revered monarchy after he was quoted by the website of British newspaper The Times as calling for reform of royal institutions.

Defaming the monarchy, led by 81-year-old King Bhumibol Adulyadej, is a crime punishable by up to 15 years in jail in Thailand.