Cambodia refuses Thaksin extradition demand

Cambodia on Wednesday rejected a request by Thailand to extradite Thaksin Shinawatra, deepening a rift over Phnom Penh's appointment of the fugitive former Thai premier as an economic adviser.

Thai diplomats handed over papers for the extradition of the tycoon, who was ousted in a 2006 coup and lives in exile to avoid a jail term for graft, but almost immediately 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 alongside Thaksin in Phnom Penh.

Hun Sen said Cambodia was refusing to send the billionaire back to Thailand, arguing that the charges on which he was 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.

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

Thaksin and Hun Sen have been close friends for years and are also occasional golfing partners, with reports saying that they planned to play a round in the tourist town of Siem Reap on Friday.

Thaksin used the press conference, held at Hun Sen's house on the outskirts of Phnom Penh, to accuse the Thai government of Prime Minister Abhisit Vejjajiva of having a "cold war mentality".

Thaksin is due to give a speech to 300 Cambodian economics experts on Thursday. Cambodian officials have said he will stay in the country for two or three days but is not intending to live there.

In Bangkok, Abhisit condemned the Cambodian 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.

"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 shared 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.

Analysts say that in his close friend Hun Sen he had found a new way of pushing his campaign for a return to power.

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.