Pressure grows on Thai PM after protests escalate

By Noppawan Bunluesilp

BANGKOK, Aug 30 (Reuters) - Thai Prime Minister Samak Sundaravej was under growing pressure on Saturday as protesters determined to topple him occupied his official compound amid reports the army chief had suggested he consider stepping down.

Thousands of protesters wandered around the compound of Government House or listened to speeches by their leaders. A Reuters reporter saw no police around the compound as the occupation entered its fifth day.

An informal truce was expected on Saturday because of a royal ceremony near the protest site during the afternoon to be presided by Crown Prince Vajiralongkorn.

King Bhumibol Adulyadej is revered in Thailand and neither demonstrators nor police will want to be accused of offending him by sparking violence during the event, held in his honour.

Anti-government unrest escalated on Friday when a 2,000-strong crowd attacked Bangkok's police headquarters and around 30 were injured as police repelled them with rubber bullets.

Samak met military officials on Friday, after which army chief Anupong Paochinda told reporters he had rejected the idea of imposing a state of emergency.

The Bangkok Post reported on Saturday that Anupong spoke privately to Samak after that meeting and "suggested the prime minister consider stepping down or dissolving the House of Representatives as possible options". This could not be confirmed.

Newspapers condemned the violence and chaos on Friday, when protesters blocked three airports, including that on the tourist island of Phuket, and striking workers halted some rail services.

"The only acceptable form of damage limitation is a speedy return to conduct befitting a civilised society and the rule of law. To behave otherwise is to invite anarchy and chaos," the Bangkok Post said in an editorial, deploring the likely damage to tourism.

The protests are led by the People's Alliance for Democracy (PAD), a motley group of businessmen, academics and activists who accuse Samak of being an illegitimate proxy of ousted Prime Minister Thaksin Shinawatra, now in exile in London. Samak denies the accusation.

The assault on police headquarters came hours after riot officers tried to deliver an eviction order and clashed with demonstrators inside the prime minister's compound. The Civil Court later said it had retracted the order while the PAD appealed against the ruling.

The PAD proclaims itself to be a defender of King Bhumibol Adulyadej against a supposed Thaksin plan to turn Thailand into a republic -- a charge denied by both Thaksin and the government.

Thai shares have fallen 23 percent since the PAD's street campaign began in May amid fears of policy paralysis at a time of stuttering economic growth and high inflation. (For a chronology of the unrest, click on [ID:nBKK179147]) (Additional reporting by Vithoon Amorn; Writing by Alan Raybould; Editing by Valerie Lee)