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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Australia China India Indonesia Japan Malaysia Philippines Thailand Vietnam Thai 'red shirts' ignore new government threats Reuters - Monday, May 3 Send IM Story Print By Orathai Sriring BANGKOK - Anti-government protesters in the Thai capital showed no sign of leaving the city's main shopping district on Monday despite new warnings of clashes and losses during a two-month crisis that has already killed 27 people. Prime Minister Abhisit Vejjajiva warned thousands of red shirted protesters on Sunday there was a risk of further trouble if the protesters did not leave upscale Bangkok shopping district they have closed and barricaded themselves in for a month. Abhisit is under intense pressure to end the two-month stalemate that has choked off tourism, paralysed Bangkok, shut major department stores and stoked concerns of civil unrest. The finance minister said last week the protests could cut economic growth by two percentage points if they continue all year. Thailand's financial markets, closed for a market holiday on Monday, have underperformed regional peers since April 10 when the protest turned deadly with a gun battle in the heart of old Bangkok that killed 25 people and wounded more than 800. "From now on, what the government will do may risk clashes and losses, but the government knows what it's doing. What needs to be done must be done," Abhisit said in a weekly televised address on Sunday. It was not clear what he meant by "losses." By early on Monday, thousands of the red-shirted supporters of ousted premier Thaksin Shinawatra remained in their 3 sq-km fortified encampment, continuing to demand parliament be dissolved and elections held within three months. The mostly rural and urban poor red shirts say Abhisit lacks a popular mandate after coming to power in a controversial parliamentary vote 17 months ago and heading a coalition cobbled together with help from the military. British-born Abhisit has rejected a red shirt proposal for an election in three months, saying he would not negotiate in the face of threats. He has offered to call elections in December, a year early. NEW PLAN TO EASE TENSIONS Government spokesman Panitan Wattanayakorn said on Sunday Abhisit had come up with a new plan to ease tensions, which would be clarified soon. A report in The Bangkok Post newspaper on Monday said Abhisit would bring forward his offer to dissolve parliament in nine months, but this could not be immediately confirmed. Authorities also plan to use mobile phone text messages to try and persuade the protesters to leave. "The government will send text messages to protesters to tell them about the situation and is hoping they will return home," Panitan told reporters. Asked by reporters if Abhisit had accepted that, Nattawut Saikua, a protest leader, said: "That's Abhisit's problem. If he wants to do anything, we're prepared for that." Some army commanders, including army chief Anupong Paochinda, are reluctant to use force because of the inevitable bloodshed. On some evenings, tens of thousands of protesters gather in the occupied shopping district, women and children among them. On Saturday, army spokesman Sansern Kaewkamnerd said the government had ordered police to retake the area around Chulalongkorn Hospital, near the Silom business district, to ensure public safety, using force if necessary. The red shirt demonstrators caused outrage when about 200 of them barged into the hospital grounds on Thursday, looking for soldiers they thought were there preparing an attack. Their leaders apologised and removed part of the barricade in the area to allow better access to the hospital. They moved the barricade back further on Sunday to let traffic flow to and from several hospital entrances. But this appears to have been their only concession and red shirt leader Nattawut said that, as part of the deal, police had even agreed to help reinforce the barrier once it was moved away from the hospital. The hospital incursion raised concerns about how much control leaders have over their followers, particularly Major-General Khattiya Sawasdipol and the shadowy "black clad" paramilitaries who have appeared at flashpoints during the rally. The fault lines are widening between the establishment -- big business, royalists, the military brass and the middle class -- and the protesters who broadly back Thaksin, who lives abroad to escape a jail sentence handed down for corruption. 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