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Edition: U.S. Article Comments (2) Slideshow Video Save Email Print Reprints Most Popular Most Shared U.S. arrests Pakistani-American over failed car bomb | Video 3:04am EDT U.S. reveals size of nuclear arsenal 03 May 2010 Man arrested in New York failed car bomb: source 12:46am EDT Starbucks sued over hot tea alleged to cause burns 03 May 2010 Police barred from penis enlargement 23 Apr 2010 Iran: Punish U.S. for "shameful" nuclear threats | Video 03 May 2010 UPDATE 1-Man arrested in New York failed car bomb -source 12:43am EDT FDA still probing Friday's J&J recall 03 May 2010 Progress toward Gulf oil well cap | Video 03 May 2010 Oil falls below $86 on firm dollar, high U.S. stockpiles | Video 1:31am EDT Starbucks sued over hot tea alleged to cause burns 03 May 2010 Google expands venture group, wants more deals 03 May 2010 U.S. reveals size of nuclear arsenal 03 May 2010 Police barred from penis enlargement 23 Apr 2010 FDA still probing Friday's J&J recall 03 May 2010 U.S. firm recalls infant, children's Tylenol 03 May 2010 Iran: Punish U.S. for "shameful" nuclear threats | Video 03 May 2010 U.S. reviews diabetes, heart risk with prostate drugs 03 May 2010 U.S. arrests Pakistani-American over failed car bomb | Video 3:04am EDT Man arrested in New York failed car bomb: source 12:46am EDT Analysis UK poll may speed change in U.S. special relationship Britain's 'special relationship' with the United States, already past its heyday, may become increasingly humdrum if Thursday's parliamentary election delivers a weak, minority government. Full Article Thai "red shirts" study PM's election offer Ambika Ahuja and Ploy Ten Kate BANGKOK Tue May 4, 2010 2:56am EDT Factboxes Factbox: Thailand's resilient "red shirts" movement Mon, May 3 2010 Factbox: Countries warn against travel to Thailand Mon, May 3 2010 Factbox: Key political risks to watch in Thailand Mon, May 3 2010 Related News Q+A-: Will PM's peace deal ease Thai political crisis? 2:56am EDT Divisive Thaksin looms over Thai protests Mon, May 3 2010 Related Video Thai November elections proposed Mon, May 3 2010 'Red Shirts' won't back down < 1 / 17 > View Full Size BANGKOK (Reuters) - Anti-government protesters in Thailand were considering on Tuesday a proposal by Prime Minister Abhisit Vejjajiva to call a November election aimed at ending a two-month political crisis in which 27 people have been killed. World | Thailand Abhisit, backed by the royalist establishment, made the offer in a televised address late on Monday. He had rejected an offer last month by the mostly rural and urban poor "red shirts" to end their occupation of Bangkok's main commercial district in return for elections within three months. Thailand's benchmark stock index jumped 4.5 percent as investors focused on a possible end to a stalemate that had raised the risk of civil war in one of Southeast Asia's most promising emerging markets. "Market momentum is definitely going to get better and this is primarily driven by the prime minister's televised proposal last night," said Sukit Udomsirikul at Siam City Securities. "Whether this is a game-changing plan, we'll find out." The Thai baht firmed nearly a quarter percent. Prices of government bonds, seen as a safer bet at times of tension and therefore strong in recent weeks, fell. If the red-shirted protesters agree to the offer, the central bank is more likely to raise interest rates in June with political tension less of a drag on the economy. Thailand's finance minister said last week the protests could cut growth by 2 percentage points if they continued all year. Reflecting a shift in consensus interest rate expectations, the one-year onshore interest-rate swap, the fixed cost needed to receive a floating payment, rose to 1.48 percent from 1.30 percent. The benchmark rate is now at 1.25 percent. Reaction from leaders of the red shirt United Front for Democracy Against Dictatorship (UDD) was cautiously positive. Asked if an agreement was in sight, Suporn Attawong said: "It would be wonderful to reach an end without more losses." He said some sort of response would be made on Tuesday, adding he thought UDD Chairman Veera Musikapong would probably seek talks with the government on Abhisit's five-point plan. The cost of insuring Thailand's debt against default hit a two-week low. Five-year credit default swaps fell 16 basis points (bps) to 114/118, traders said. "There is hope that this proposal may go through and lead to a peaceful end to the protests," said Yang-Myung Hong, credit analyst at Nomura. CRUCIAL TIMEFRAME Abhisit had previously offered an election in December, about a year before his term ends, and some analysts doubted whether the slightly earlier date would satisfy the red shirts, who broadly back Thaksin Shinawatra, the populist billionaire ousted as prime minister in a 2006 military coup. They say both sides want to be in power in September for two critical events -- a reshuffle of leaders in the military and police force, and the passing of the national budget. If Thaksin's camp prevails and is governing at the time of the military reshuffle, analysts expect big changes, including the ousting of generals allied with Thailand's royalist elite, a prospect royalists fear could diminish the power of the monarchy. "The game plan is for the government to make it appear this offer is reasonable. If the red shirts reject it, they'll be seen as the unreasonable party and that will then give the government a chance to go after them," said Roberto Herrera-Lim, an analyst at risk consultancy Eurasia Group. "It doesn't seem like much of a compromise. This just shows how crucial the timeframe is and the importance of having that reshuffle of the military and police take place before an election." Abhisit is under intense pressure to end the political stalemate that has choked off tourism, forced posh hotels and malls to close and prompted the International Crisis Group to warn Thailand could slide into an "undeclared civil war". In his televised statement, Abhisit set five broad conditions for reconciliation that must be agreed before any election. The monarchy, he said, should not be dragged into politics or "violated" -- a condition that follows government accusations some "red shirts" aim to overthrow the monarchy. The second condition calls for reforms to address social injustice, the third proposes an independent body to monitor media to ensure unbiased reporting and the fourth a committee to investigate recent political violence. The fifth point broaches possible political reforms that could include constitutional amendments and a review of a five-year ban on politicians allied with Thaksin. They were written in language broad enough to appeal across the political spectrum, leaving the date of the new election still as the main sticking point. "No one is going to disagree with the five conditions. They are just decoration because that's the language you use in any call for national reconciliation. But the point is that this is the first concrete offer from the government," said Chiang Mai University political science professor Thanet Charoenmuang. The red shirts say Abhisit lacks a popular mandate after coming to power in a controversial parliamentary vote 17 months ago, heading a coalition cobbled together with military help. On Tuesday, thousands of protesters remained in the fortified camp in Bangkok's main shopping area. Army spokesman Sansern Kaewkamnerd has said the security forces could use armored vehicles to disperse them but no move has been made to do that. (Additional reporting by Saikat Chatterjee in Hong Kong; Writing by Alan Raybould; Editing by Alex Richardson) World Thailand Comments See All Comments (2) | Post Comment May 03, 2010 11:39pm EDT With all the fiery rhetorics and demagoguery by Red leaders at Rajaprasong, I am not particularly hopeful that the Reds will react positively to PM Abhisit’s offer of reconciliation. I carry this suspicion that the Reds leadership are intent on provoking a bloody crackdown at Rajaprasong – to exploit that bloodshed to incite an uprising in Bangkok and the countryside. Their objective is to overthrow ‘the system’ … violently. MattBkk Report As Abusive May 04, 2010 12:46am EDT RED SHIRTS,,, RED GUARD,,, coincidence,,, i don’t think so,,, freespeech2 Report As Abusive See All Comments (2) 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 Iran: Punish U.S. for "shameful" nuclear threats UNITED NATIONS (Reuters) - Calling nuclear weapons "disgusting and shameful," Iranian President Mahmoud Ahmadinejad urged the United Nations on Monday to punish countries like the United States that threaten to use them. | Video Volcanic ash closes parts of UK airspace Thai "red shirts" study PM's election offer | Video Iran to hold naval exercises in Gulf: State TV South Korea stops just short of blaming North for sinking UK leaders make frantic final push for votes » More Top News Yuan market in for a bumpy ride When China finally loosens its grip on the yuan, it will be dealing with something the country has never experienced before: sharp -- but necessary -- currency swings. Full Article The implications of China reserve move Q&A: Chinese economic rebalancing China Special Report: Wall Street plows for profit The heartland is hot for financial firms looking to cash in on growing world food needs. But critics say Wall Street's hayride is a dangerous land grab that risks transferring valuable resources from the poor to the wealthy. Full Article Farewell to the family farm? 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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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