CNN: Mr. Prime Minister, thankyou for joining us.

PM: You're welcome.

CNN: Do you hold out any hope for any compromise with the opposition, the so-called red shirts, right now?

PM: Well, we hope that everybody will come to their senses. There are a number of groups that are approaching the government, approaching the people in the red shirts movement. And they think that there should be discussions on what would be an appropriate way forward for the country. As far as the government is concerned, we want to enforce the law in parallel with finding a political solution.

CNN: Well, let me ask you, Mr. Prime Minister, it seemed for a few days that there might be a solution, some kind ofnew elections, perhaps within about 3 months, and then you rejected that.

PM: No. The so-called offer was made by the leaders of the red shirrs that dissolution must take place in 30 days. It just doesn't make sense. When we had two rounds of open negotiations, I made it very clear that we need to make sure that there is a roadmap so that true reconciliation can be achieved. What we want to do is to make sure that the Thai economy is well underway as far as recovery is concerned. We want to make sure that the conditions and environment is right so that reconciliation can take place, that we would have free, fair and peaceful elections. And there are a number of things that need to be done before dissolution can take place.

CNN: In fact, some of the opposition or, rather, some of the royalists, some of the progovernment supporters seem to be getting very hard-line and wanting to see a military crackdown. Are you going to call on the military to disperse the protesters to restore order?

PM: The military, the police, the civil servants, we are all working with the same objective, which is to achieve normalcy, We recognise that there has to be a political solution down the line. At the same time, we need to enforce the law. Now, as far as people that you call getting more hard-line, we try to say to them that, yes, we too want to make sure that normalcy is restored through enforcing the law. At the same time, we do not reject any kind of political solution that would be acceptable to all.

CNN: Well...

PM: But we have to take into account the views of some may say -the majority of people who say that we should not cave in to terrorist tactics. And we can understand the feeling of the general public that if the government gives in to intimidation and terrorist tactics, this sets a very bad precedent.

CNN. Well, are you saying then that the opposition - are you calling them "terrorists "? And how do you explain the rather large number ofdeaths, more than a couple ofdozen deaths during the crackdown on April 10^th"?

PM: Well, first of all, as far as what happened on April the 10th , we have said that we would cooperate with independent investigations, particularly as carried out by the Human Rights Commission, which is a neutral body. A number of evidence now suggests that the deaths have been caused by groups of people who are called the "men in black". And we also have a number of clips and evidence to suggest that the men in black were operating among the red-shirted people,

CNN: Do you call them terrorists, because you did, in the immediate aftermath, you said that a group of people who we can consider terrorists had taken advantage of the gathering. Is that what you're saying?

PM: Yes. Yes, and I'm sure that the international community would call anybody who used weapons, who used force and intimidation to make illegal demands, who caused violence "terrorists". And they are precisely that. But that doesn't mean that the number of demonstrators who are present in the middle of Bangkok now are terrorists. They also have their own demands. They also have their own grievances. It's just that elements of people who are engaged in terrorist tactics are among them.

CNN: Do you believe that if you need to restore order, you will have the support of the army? There are reports, there's evidence that perhaps some even active, some retired officers have been sympathetic to the red shirts, that during some of the push-back against the red shirts, the army sort oflooked on as leaders escaped and didn't stop them. Are you confident that as the government. you have the support ofthe army?

PM: Yes, I am confident. There is unity and the army knows what it has to do. But it also recognises, just as I've said before, that there are a number of dimensions to this problem. There is the political dimension; there is the legal dimension. And we have to make sure that our operations are careful, which is why we have taken a lot of care to make sure that there is no undue force being used.

CNN: Well, you've been talking about a political resolution. And it's clear now that the protests seem to be spreading, not just confined to Bangkok but in some of the hinterlands, particularly in areas where the former prime minister has support. And I want to play now a clip ofthe former prime minister, Thaksin Shinawatra, addressing his supporters by video link. Listen to this, and then I'll ask you a question afterward. {VIDEO OF THAKSIN ADDRESSING THE SUPPORTERS (VOICE OVER): People want to move forward, but the ruling elite pulls the country backward I want to congratulate you all in advance that you will help make history in Thailand by changing the politics from an elite era to a real democracy.]

CNN: Mr. Prime Minister, many don't regard your government as legitimate, having not been elected. What are you saying in terms ofa political resolution? What resolution can you see that will defuse this crisis?

PM: Well, a couple of things to set the record straight. The protests that we see in parallel in the provinces have been happening for quite some time. But compared to the situation maybe a month ago, I think. there has been a marked improvement on what is going on in terms of us being able to contain movements not just in Bangkok, but also in the provinces.

Secondly, I am still very surprised by the accusation that somehow this government is illegitimate. It's as if this government comes from a coup. That's not the case. After the coup, a referendum was held on a constitution) an election was held. Two governments have assumed office since. We've assumed office under the same means, under the same rules, by the same vote of parliament as the two previous administrations. So there is no question about that. And the opposition recognised that. That's why they've been operating in parliament as the opposition for over a year. So I think the accusations and the allegations are unfounded.

CNN: Again, I just want to try to be clear - in the absence ofany concrete alternative to the peace deal that's been squashed, there is a lot offear that you will be, let's say, forced or encouraged to bring out the army. Are you saying categorically that that will not happen?

PM: No, I'm saying that a political solution must be found in parallel with enforcement of the law. That is what I'm saying. And I don't think that it would be right to say that somehow there is only one side that is offering talks of any kind. The government has been clear - I'm probably the first prime minister who has been with, who has been able to talk to the leaders of the protests as I did earlier on or late in March or early April. I've also offered to cut my term short. But what I'm saying is that the date for elections should be set in such a way that it benefits the general public, taking into account the views of everybody, not just the people who are demonstrating on the streets.

CNN: Are you concerned that really extensive civil strife, civil war could break out?

PM: Of course. And we have been at pains to point out to people who disagree with the protesters that they should exercise restraint. And we will do all we can to make sure that no clashes happen between the groups of people.

CNN: So, finally, where do you see this going over the next several days? And how long do you think you can afford to allow this strife to continue? Do you see any chance ofany kind ofdeal being resurrected in the near term?

PM: We recognise that, as every day passes by, you know, the people of Thailand suffer, the country suffers. But we want to make sure that there is rule of law. Now, we will try to enforce the law with minimum losses, and we will try to find a political resolution. But it takes time, patience and cooperation. We will do the best we can and try to move the country forward as quickly as possible.

CNN: On that note, Prime Minister, thankyou so much for joining us.

PM: You're welcome.

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