Thaksin returns to Thailand

BANGKOK (Reuters) - Ousted Thai Prime Minister ThaksinShinawatra made an emotional return from exile on Thursday,preaching reconciliation and forgiveness in a country stillpolarised by his five years in elected office.

"We can certainly have various opinions on various things,but we shall not be divided," the former telecoms tycoon told apacked news conference after arriving from Hong Kong.

"It will be best for all of us to reduce our ego, and ourprejudice," he said.

However, few Thais believe -- or want to believe -- the58-year-old's mantra that he is returning only to clear himselfof corruption charges and to spend quality time with the familyafter 18 months of exile enforced by a September 2006 coup.

The cheers and tears from the thousands who greeted him atBangkok's new airport suggest the only elected Thai primeminister to complete a full term in office will not be allowedto stay out of the political fray for long -- even if he wantedto.

"I love him so much," said 65-year-old Wilai Scott, who ismarried to a foreigner. "I want Thaksin to be PM again."

The big question is whether he does indeed take a backseat, or whether he uses allies swept to power in a Decemberelection to go after the generals and the royalist elite whoousted him.

Already the People's Alliance for Democracy, which led theprotest marches against Thaksin that culminated in the coup,has warned Thaksin not to use political clout to sway thecorruption cases against him and his wife.

"If we find they are trying to intervene in the judicialprocess directly or indirectly, we will not sit idly by,"spokesman Suriyasai Katasila told reporters.

What seems certain is that the long-term battle forThailand's future is far from over.

"He will attract a lot of support from his fans and he willattract a lot of hostility from those who don't see hispresence in Thailand as a benefit," said Christopher Bruton,director of Dataconsult.

"We are going to see opposing groups and that alone is ahighly disruptive factor," he said.

TEARS AND CHEERS

Within minutes of arriving, Thaksin surrendered himself topolice, then, with tears in his eyes, left the terminal tokneel and place his forehead on the ground, his palms claspedtogether in a gesture of traditional respect for hismotherland.

Thousands of supporters waving roses and "We love Thaksin"banners cheered their hero, who was then whisked away in amotorcade of limousines to the Supreme Court, where he wasgranted 8 million baht (136,000 pound) bail.

Thaksin, accused of presiding over rampant corruption anddisrespecting revered King Bhumibol Adulyadej, protested hisinnocence and insisted his political career was over.

"I'll just voice concerns as a former prime minister, if Iwere to have any," he told reporters on the plane, acelebratory glass of champagne in his hands.

Bangkok's main stock index closed up 1.2 percent in thintrade as investors tried to assess the impact of his return.His every word is likely to come under intense scrutiny incoming weeks to divine his real intentions.

Signs of revenge would alarm investors worried about arepeat of the political confrontation that brought Thailand'sgovernment and capital city to a standstill for months in late2005 and much of 2006.

"The next question here is about political stability,whether the man can live up to his promises," said SaengthamJaranachaikul, a senior analyst at Thanachart Securities.

"If he does the opposite, then it might stir up those whodislike him to come out on the streets again," he said.

(Additional reporting by Dominic Whiting and DarrenSchuettler; Writing by Ed Cropley; Editing by Michael Battyeand Bill Tarrant)