By Ambika Ahuja
BANGKOK (Reuters) - Anti-government protesters in Thailand on Thursday demanded more talks before agreeing to end two months of protests that have stifled the economy, scared off tourists and sparked the country's deadliest political clashes in 18 years.
The red-shirted supporters of former Prime Minister Thaksin Shinawatra have broadly welcomed premier Abhisit Vejjajiva's five-point national reconciliation plan to end a crisis in which 27 people have been killed and more than 1,000 wounded.
But thousands remained barricaded in a 3 sq km (1.2 sq mile) stretch of upscale department stores, luxury hotels and expensive apartments in central Bangkok, escaping the tropical rain under makeshift tents.
"We still have problems with many issues," Nattawut Saikua, a protest leader, told reporters. They had yet to agree to Abhisit's offer of a November 14 election, he added.
The mostly rural and urban poor protesters have demanded immediate elections that Thaksin's allies would probably win, and say the ruling coalition lacks a popular mandate after coming to power in a controversial parliamentary vote 17 months ago.
They chafe at what they see as the military and unelected royalist aristocracy meddling in politics, and targeted the shopping district as a symbol of wealth out of reach to rural masses in a country with one of Asia's widest income disparities.
The United Front for Democracy Against Dictatorship, better known as the "red shirts," want to see the outcome of a ruling coalition meeting on Friday before deciding their next move, Nattawut said.
Protest leaders are demanding a specific date for dissolution of parliament -- a technicality analysts said was probably an excuse to negotiate better terms or to help protest leaders escape possible terrorism charges once the rally ends.
Abhisit said dissolution would take place between September 15 and 30 under laws requiring that parliament be dissolved 45 to 60 days before an election.
"They have said they have entered the reconciliation process but still won't go home," the British-born, Oxford-educated prime minister told reporters. "I want to say if eventually they don't go home, then I don't have to dissolve parliament."
Protest leaders remained sceptical.
"The reconciliation plan is very vague and Abhisit's promise is slippery. We have to make sure what we are getting before we declare victory," said Weng Tojirakarn, another protest leaders.
MARKETS WEAKER
The stock market fell 1.5 percent as trade resumed a day after a public holiday, broadly in line with Asian markets. The baht was also softer, as were regional peers.
Central Pattana PCL, which manages Southeast Asia's second-largest shopping mall, Central World, said the protests had caused a combined loss in revenue of $37 million (24 million pounds) for all retailers at the site, which has been closed since early April.
Thai stocks surged 4.4 percent on Tuesday on optimism that Thailand's economy, Southeast Asia's second biggest, would see strong growth this year if peace returned to Bangkok's streets and the country's shattered tourist industry bounces back.
"In the medium term, we expect to see a limited impact from this crisis on the economy and this, combined with the reconciliation plan, will see a return of interest from foreign investors," said Mayuree Chowvikarn, an analyst with top broker Kim Eng.
But negotiations to end the protests could be tough. The red shirts want the government to lift a state of emergency and remove troops stationed near the site before they leave.
Analysts say both sides want to be in power in September for a reshuffle of the powerful military and police forces, and for the passing of the national budget.
"We will fight till the end. I am ready to do that but I am not sure I will be satisfied if the election is in November. Is that all we are getting after all this?" asked Nitsara Saengkam, a 48-year-old woman preparing a papaya salad for fellow protesters.
Nomura credit analyst Young-Myung Hong said in a note he expected the spread on Thai credit default swaps to narrow on the prospect of some short-term stability returning.
"Nevertheless, we think this would only be a temporary reprieve, with the seeds of political tensions remaining in place and the potential of renewed conflict in future," he added.
Thaksin, a graft-convicted populist multimillionaire who fled Thailand after being ousted in a 2006 military coup, has broadly welcomed Abhisit's offer but said any decision to accept it is up to his supporters, whose numbers have dwindled in recent days along with their apparent bargaining power.
Rival "yellow shirt" protesters, whose occupation of Bangkok's airport in late 2008 helped bring down a Thaksin-allied government, harshly criticised the reconciliation plan, saying a possible constitutional amendment could pave the way for an amnesty for banned politicians allied with Thaksin.
"That would be a collusion of the government and terrorists and a betrayal of the public," said the group's spokesman , Suriyasai Katasila.
(Additional reporting by Ploy Ten Kate; Writing by Jason Szep and Alex Richardson; Editing by Alan Raybould)
