Friday, November 20, 2009

"Friendly" dispute

BANGKOK, Nov 17 (Reuters) - Thailand's cabinet is reviewing aid to Cambodia, the latest move in a diplomatic row triggered by a visit by fugitive former Prime Minister Thaksin Shinawatra to Phnom Penh.

The cabinet will discuss various retaliatory measures, including freezing low-interest loans to build roads in Cambodia, during its weekly meeting, said Panitan Wattanayagorn, deputy secretary-general to Prime Minister Abhisit Vejjajiva.

Thaksin went to Cambodia after its prime minister, Hun Sen, offered him a job as an economic adviser. The Cambodian government rejected Bangkok's request to extradite him.

His visit to Cambodia further strained relations between the two neighbours. They recalled their ambassadors and a Thai man was arrested in Cambodia for alleged spying.

Thailand has already said it would scrap a 2001 memorandum of understanding on energy development in the Gulf of Thailand.

The agreement was signed under Thaksin's administration, with the aim of finding a way to jointly develop oil and gas resources in disputed waters, although little progress has been made.

Thaksin left Cambodia on Saturday. He spends most of his time in Dubai.

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