Thailand's fugitive ex-premier Thaksin Shinawatra gave a lecture to Cambodian economists Thursday in Phnom Penh even as Thailand ordered a review of soft loans intended for Cambodia and suspended a grant in aid for it in the wake of Phnom Penh's refusal to extradite Thaksin.
Cambodia punched back by expelling the No. 3 at the Thai Embassy in Phnom Penh, declaring First Secretary Kamrob Palawatwichai persona non grata and ordering him to leave within 48 hours.
Lecturing to some 300 Cambodian economists as well as government and parliament figures, Thaksin spoke of his successes as prime minister before he was ousted in 2006, such as in helping Thailand's rural poor in health, education and financial support.
Thaksin, who arrived in Cambodia on Tuesday, irking the Thai government, also touched on the global economic crisis, the future of the global economy, tourism, agriculture, and micro-finance.
But he treaded lightly on Thai politics, saying only that his political opponents are engaged in "false patriotism" rooted in "domestic political compulsions" and that without reconciliation, Thailand will be "off the radar screen of many investors."
At the event, Cambodian Deputy Prime Minister and Minister of Economy and Finance Keat Chon lauded Thaksin's "astonishing" achievements in reducing rural poverty and introducing universal healthcare, as well as his economic policies that helped accelerate Thailand's economic recovery from the 1997 Asian financial crisis.
Meanwhile, amid deteriorating bilateral ties, Thai Prime Minister Abhisit Vejjajiva called an urgent meeting of the National Security Council on Thursday morning to consider what further steps to take in reaction to Cambodia's appointment of Thaksin as an economic adviser and its refusal to extradite him to Thailand.
Abhisit later told a press conference that Thailand would not mobilize troops at the border with Cambodia since the government does not want local residents to suffer from the conflict between the two governments.
He said Thailand will carefully step up measures to deal with Cambodia by reviewing its cooperation with the country.
Thai Deputy Prime Minister Suthep Thuagsuban said implementation of a 1.4 billion baht (US$41 million) loan for road construction in Cambodia, which was already approved by the Cabinet several months ago, "will not be smooth," while 31 million baht in grant aid that Cambodia more recently sought from Thailand will not be considered by the Cabinet.
Thai Deputy Finance Minister Pruttichai Damrongrat said Abhisit assigned the Finance Ministry to review another 1 billion baht loan that was to be used for road building.
Thailand earlier withdrew its ambassador from Phnom Penh and axed bilateral negotiations on overlapping maritime claims, while Abhisit said Wednesday that Thailand would restrict the flow of people crossing the border to gamble in casinos in Cambodia.
But he said the border will not be closed.
Thaksin served as Thailand's prime minister from 2001 until he was toppled by a military coup in 2006 and fled into exile. He was sentenced in absentia to two years imprisonment for breaking a conflict of interest law while he was in power.
He was appointed as a personal adviser to Hun Sen and an economic adviser to the Cambodian government on Oct. 27, a move that Abhisit's government called an insult to the Thai judicial system.
Hun Sen's government has refused to extradite Thaksin on grounds that an extradition treaty in effect between the two countries since 1998 does not apply to cases on which the alleged offense of a political nature.
Cambodia has quoted the adage "a friend in need is a friend in deed" in inviting Thaksin to stay as long as he wishes.
Hun Sen and Thaksin have known each other for nearly 20 years, beginning when the latter was still a businessman. Hun Sen calls him an "eternal friend."
Thaksin arrived later Thursday in Cambodia's northern province of Siem Reap where he is scheduled to tour the Angkor temples and play golf with Hun Sen.
He was greeted in the city by around 50 hardcore supporters who crossed over from Thailand the previous day to see him.
Thaksin's supporters in Thailand have been rallying against the government, demanding that Abhisit step down, that the House of Representatives be dissolved, and that Thaksin be pardoned for his conviction.
