Thailand Protesters Set For "Final Stand"

Troops forced back rampaging anti-government protesters with warning shots from automatic rifles in a day of bloody street battles in the besieged Thai capital. Two were killed as the riots turned deadly for the first time since the crisis began, and demonstrators vowed a "final stand" unless the government resigns.

By nightfall Monday, the clashes that had gripped several parts of the city, wounded 113 people and sent plumes of smoke drifting across the skyline had ebbed. But new fighting erupted between protesters and angry residents in other parts of the city.

The violence is the latest round in a political tug-of-war between the "red shirts," who support the former Prime Minister Thaksin Shinawatra, and the "yellow shirts," who back the current government, reported CBS News correspondent Celia Hatton.

The "reds" are mostly from Thailand's poor majority; the "yellows" come from the country's urban middle classes, added Hatton.

The government warned citizens to be on alert. "We worry that the protesters tonight will engage in acts of sabotage, like arson and throwing explosives," Deputy Prime Minister Suthep Thaugsuban told the nation in a televised address.

Prime Minister Abhisit Vejjajiva praised the efforts of security forces, saying they used "soft means" and "prevented as much damage as possible," though ousted former Prime Minister Thaksin Shinawatra - the man most protesters consider their leader - accused the military of covering up the number of people killed in the day's battles.

Abhisit said the news late in the day that two people had been killed and 12 wounded in a gunbattle between protesters and residents at Nang Lerng market was "a regrettable incident."

That battle broke out as the demonstrators attempted to make their way back to their base outside the prime minister's offices at Government House, where they have been holding out since March 26 and an estimated 5,000 were gathered.

Police Col. Rangsan Praditpon said hundreds of protesters and residents faced off outside the market. Protesters and vendors hurled molotov cocktails and shot at one another but it was not clear who fired first.

"The protesters were upset that the vendors were giving food and water to the soldiers and cheering them on," he said. "The vendors in the evening became more angry when protesters threatened to burn down their houses. Both sides were armed."

He said soldiers and police were patrolling the area to prevent further clashes. Most protesters later retreated.

Niwat Adirek, a 42-year-old vendor, said residents will patrol the area with authorities during the night.

The incident was the most violent among at least four clashes between the public and protesters that began in the afternoon.

The protesters had been stationed at a half-dozen points in Bangkok, defying government-imposed state-of-emergency measures that ban gatherings of more than five people.

Protesters hijacked and torched public buses to block several key intersections, set tires and vehicles on fire and sent two unmanned buses, one of them burning, hurtling toward lines of soldiers.

In one of several confrontations, a line of troops in full battle gear fired volleys of M-16 fire over the heads of protesters, and turned water cannons on the crowd near Victory Monument, a major traffic circle. The army spokesman said troops fired blanks into the crowds and live shots overhead.

But in an appearance on CNN, ousted former Prime Minister Thaksin Shinawatra - who most of the protesters consider their leader - accused the military of lying, saying soldiers used live ammunition, killed protesters and dragged away their bodies

"They shot people. Many died. Many people were injured," he said.

"I would like to urge every party that comes together to gather peacefully. War never ended with war," said Thaksin, who a day earlier phoned-in to a rally of supporters and called for a "revolution."

Abhisit dismissed Thaksin's assertion, saying "if there were that many people killed, it would not have escaped the eye of the media."

Dr. Chatri Charoenchivakul of the official Erawan Emergency Coordination Center said the day's clashes had killed two and wounded 113.

With their lines elsewhere in the city weakened by the military, protest leaders called on the red shirts to retreat to Government House.

"This will be our final stand. I beg that you return here and face them together," protest leader Jatuporn Phromphan shouted from a stage at the protest site. "We will use peaceful means and stay right here to end their violence."

Continuing the cat-and-mouse game that played out throughout the day, army spokesman Col. Sansern Kaewkamnerd said some of the 6,000 troops deployed in Bangkok were heading to the vicinity around the seat of government and police had set up roadblocks to prevent more protesters from joining in.

"It's going to take time, and we are trying to cause as little loss as possible," he said.

Hundreds of soldiers and police assembled at the Royal Plaza, about a mile (less than 2 kilometers) from Government House, confronting about 100 female protesters who knelt down and screamed "Please stop, brothers." Some hugged the soldiers.

"I don't believe they will shoot us," said Tawatchai Chairunreoung, a 45-year-old office worker who was eating noodles at a roadside stall in the evening. "There are too many of us here. And we are unarmed. I am not here for Thaksin. I just don't like the military intervening when it's not their place."

Abhisit said he would listen to demonstrators at Government House who had engaged in peaceful and legal protest.

But today, I would like to ask you to be a part of return peace (to the city) by leaving," he said in his nighttime television address. "We will make it convenient for you to return home."

Political tensions have simmered since Thaksin was ousted by a military coup in 2006 amid accusations of corruption and abuse of power. He remains popular in the impoverished countryside for his populist policies.

His opponents - many in urban areas - took to the streets last year to help bring down two governments led by his allies, seizing Bangkok's two airports in November for about a week. At that time the military had refused to enforce emergency decrees enacted by Thaksin's allies.

Parliament then appointed Abhisit in December after a court ordered the removal of the previous pro-Thaksin government citing electoral fraud. Thaksin supporters took to the streets in protest, accusing the country's elite - the military, judiciary and other unelected officials - of interfering in politics. Their numbers grew to 100,000 in Bangkok last week.

The sight of the army moving in on protesters was in stark contrast to the total lapse of security that occurred over the weekend, when a 16-nation Asian summit was canceled after demonstrators stormed the venue.

Thailand will not be able to escape the economic damage caused by the conflict. This week's clashes, combined with November's airport shutdown, will likely slash the country's tourism revenue by a third this year, or 200 billion baht ($5.6 billion), said Kongkrit Hiranyakit, chairman of the Tourism Council of Thailand.

Several countries issued travel advisories Monday, urging citizens to avoid trips to Thailand and for those already in Bangkok to stay in their hotels and away from protests.

The U.S. Embassy issued a warden message urging Americans "to avoid the areas of demonstrations and to exercise caution anywhere in Bangkok."

Monday marked the beginning of the Thai New Year, normally the country's most joyous holiday. The Bangkok municipal government canceled all its festivities, but despite the rioting many Thais and foreign tourists began engaging in the ritualistic water throwing and general partying.