Former Thai PM calls for unity amid crisis

Former Thai PM calls for unity amid crisis

BANGKOK (AFP): Thailand's respected elder statesman Prem Tinsulanonda appealed to the opposition and the nation yesterday to rally around beleaguered Premier Chavalit Yongchaiyudh to help the country weather its chronic economic storm.

The former premier, a Privy Councillor and close aide to King Bhumibol Adulyadej, urged unity among political adversaries and the support and confidence of the people for the government's bid to end the crisis.

"If we want our country to get back to the old situation, we must not separate the prime minister, ministers or whosoever, we have to all be on one side," he said.

"We must stop everything that can damage or divide us and particularly (we should see the) prime minister as the representative of all the Thai people," he said.

The plea came after the International Monetary Fund (IMF) approved last week a US$16.7 billion rescue package to bail our the country's embattled economy.

The deal means a period of tough austerity for Thais which is likely to be widely unpopular.

Prem made his call as the government came under increasing fire from the opposition and big business for its handling of the slump which has seen scores of finance firms suspended while the stocks and currency markets have plunged.

It came just three days ahead of a parliamentary debate on the economy and three weeks before a crucial no confidence motion which could see the nine-month-old government fall.

Analysts said the comments of Prem -- who top politicians see in times of crisis -- reflected top-level concerns that political instability could further jeopardize the economy and undermine measures to correct it.

Speaking at a news conference at his Bangkok home to mark his 77th birthday, Prem called on the public to show courage during the "painful" period during which the government will apply IMF- supported austerity measures.

He told guests, who included the prime minister, senior military leaders and captains of business and industry, that the country would weather the serious financial drama.

"It has happened before so Thai people have to cooperate to solve this problem successfully," Prem said at the early morning briefing which was broadcast live on national radio and television.

"We should therefore not worry about this problem, we just have to be confident that we will solve the problem successfully.

"The Thai people must have confidence in the government's measures and must cooperate and have the courage to fight the crisis," he said.

"It will be necessary for all Thai people to feel the pain and everybody should try to be a doctor for this pain," he said.

The IMF package calls for tight austerity measures to be imposed on the country in a bid to bring Thailand's accounts back into the black.

But analysts say that public and business confidence in the IMF measures and in the government's ability to implement them is crucial if the country is to see a relatively quick economic recovery.

"The call by Prem seems to indicate how crucially the top authorities feel the proper implementation of sound economic measures is, and how important they feel political stability is for that to happen," one analyst said.

The opposition and businessmen have slammed the government for its handling of the crisis amid repeated calls for its resignation.

The IMF, which is expected to unblock an initial $3.9 billion to bolster Thailand's flagging foreign exchange reserves, has reportedly said the economic crisis had been heightened by political squabbling.