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Edition: U.S. Article Comments (3) Slideshow Save Email Print Reprints Most Popular Most Shared Thai "red shirt" leaders escape arrest 2:48am EDT UPDATE 1-US carriers cancel Europe flights due to ash 15 Apr 2010 Volcanic ash turns northern Europe into no-fly zone | Video 2:28am EDT Icelandic volcano eruption intensifies | Video 15 Apr 2010 Icelandic volcano eruption intensifies | Video 15 Apr 2010 Obama makes hospitals allow gay visitation rights 15 Apr 2010 Chocolate may be good medicine for liver patients 15 Apr 2010 Icelandic volcano eruption intensifies | Video 15 Apr 2010 More U.S. babies born with syphilis, report finds 15 Apr 2010 Chocolate may be good medicine for liver patients 15 Apr 2010 Thai "red shirt" leaders escape arrest Nopporn Wong-Anan and Sukree Sukplang BANGKOK Fri Apr 16, 2010 2:48am EDT Related News Thai PM has no intention of resigning- finance minister Thu, Apr 15 2010 Bangkok hotels feel pinch, shares tipped to fall Thu, Apr 15 2010 UPDATE 2-Bangkok hotels feel pinch, shares tipped to fall Thu, Apr 15 2010 Thai violence hits occupancy in Bangkok hotels Thu, Apr 15 2010 Bangkok hotels under 30pct full-tourism body Thu, Apr 15 2010 < 1 / 4 > View Full Size BANGKOK (Reuters) - Thai anti-government protest leaders staged a dramatic escape from police on Friday after the authorities vowed to crack down on "terrorists" ahead of a planned televised address by the prime minister. World One protest leader slid down a rope from a balcony, while others were rescued from riot police by hundreds by "red shirts", who heavily outnumbered security forces at a Bangkok hotel owned by the family of former premier Thaksin Shinawatra. The protest leaders later joined thousands of their supporters at the main "red shirt" site in a central Bangkok shopping center. Thailand's financial markets extended losses. Sovereign credit default swap spreads, a measure of the country's credit quality, widened out and the stock market lost further ground, underperforming the emerging Asian region. The "red shirts" back Thaksin, who was ousted in a 2006 coup, and want Prime Minister Abhisit Vejjajiva to step down immediately and call early elections, which he has refused to do. Abhisit had been due to hold his first news conference in four days at 1 p.m. local time (2 a.m. EDT) but it was delayed, although no reason was given. MARCH CALLED OFF Protesters called off plans to march on television stations that they accused of biased coverage, removing one potential flashpoint with security forces, and hunkered down in their base in a central Bangkok shopping district. The government, which had previously said it would not directly confront the protesters, stepped up its rhetoric ahead of the botched arrest of red shirt leaders, although there are no troops on the streets of Bangkok. "We will arrest and suppress the terrorists. We have set up special task forces hunting for the terrorists," Deputy Prime Minister Suthep Thaugsuban said. The government warning came after five days of peace in the capital and as the thousands of protesters camped out in Bangkok's most affluent shopping center, which they vowed to make a "final battleground" with the security forces. Violent clashes last Saturday killed 24 people and injured more than 800 in Thailand's worst political violence since 1992, and potentially damaging a recovery in Southeast Asia's second-largest economy, especially its lucrative tourist sector. Finance Minister Korn Chatikavanij told Reuters on Thursday Abhisit would not resign as it would "be very negative for the country". The government has also said it would crack down on people it believed to be financing the red shirts and issued summonses under emergency powers for 60 people to report to a military barracks, where Abhisit has set up emergency headquarters. The escalation in government rhetoric on Friday caused a further selloff in Thai markets. By 0639 GMT, the Bangkok bourse was down 2.1 percent and has lost almost all its gains this year. Thailand's five-year credit default swaps (CDS), also used to speculate on the country's credit quality, were trading at 110/115.57 against 105/111 bps on Monday, the last trading day prior to a three-day holiday. OCCUPANCY RATES PLUNGE The violent protests have hit Thai tourism, with occupancy rates less than a third of normal levels in Bangkok, according to a tour operator body. According to a report from investment bank Morgan Stanley, losses to tourism, which accounts for 6 percent of gross domestic product, could clip 0.2 percentage point from economic growth this year. If the protests, centered on Bangkok's ritziest shopping area, are prolonged, damage to consumer confidence in the capital could lop off another 0.6 percentage point, the bank said. The government believes Thailand's economy could grow 4.5 percent this year, although Korn warned that forecast could prove optimistic. (Additional reporting by Viparat Jantraprap; Writing by David Chance; Editing by Alan Raybould and Bill Tarrant) World Comments See All Comments (3) | Post Comment Apr 16, 2010 12:15am EDT RED shirts = communists???? chrisvb Report As Abusive Apr 16, 2010 12:50am EDT Arisman sleep in hotel..while the people sleep on the road…I remember the leader of yellow shirt …75 years old he slept on amaca for three month with them people…when the yellow they occupied goverment palace…thinking.. chicco Report As Abusive Apr 16, 2010 12:53am EDT @ chrisvb RED shirts = Terrorists Terrorists > communists! gets???? —————————————- Q: What will happen if PM submits to RED Shirts demands? A: YELLOW Shirts will rally again! —————————————- f00 Report As Abusive See All Comments (3) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. More from Reuters Special Report: Sweethearts in crime Meet Gaston and Teresita Cantens. Or, Jennifer Wang and Ruben Chen. These husband and wife con artists are no Wall Street novelty act. Reuters investigates the rise in married couples defrauding investors out of millions of dollars. Full Article SEC watchdog to fault Stanford probe: sources Corporate Crime Obama: Mars by the mid-2030s President Obama vowed to "leap into the future" with the U.S. space program, saying he expects a manned mission to Mars by the mid-2030s. Full Article | Slideshow Why go to an asteroid? Firms see opportunities in space plan Q&A: Pros and cons of Obama's plan Easterbrook: NASA needs to save us SCIENCE Iceland volcano hits flights Volcanic ash and smoke spews into the air, disrupting air traffic across Europe, and the eruption shows no signs of abating. Video | Full Article Q+A: Why is volcanic ash a threat? Factbox: Volcanoes and ash clouds Slideshow: Iceland's volcanic ash "All four engines have stopped" World © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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