Privy Council President Prem Tinsulanonda talks to the media at an urgently called press conference at his Si Sao Thewes residence yesterday. He refused to answer the question whether Prime Minister Thaksin Shinawatra should resign.

A stern-looking Privy Council president Prem Tinasulanonda gave an uncharacteristically impromptu press conference in front of his home last night, calling on all parties involved in the crisis to restore peace in Thailand.

The unscheduled announcement caused speculation that the seemingly ordinary plea was a direct message to a particular party in the tense stalemate.

Earlier, at 10am, Prem refused to comment on the crisis, saying it was not the right time but at 7pm, a member of Prem's staff at Ban Si Sao summoned reporters.

An ashen-faced Prem, wearing a blue tracksuit, faced an army of reporters to make a short statement.

"People involved in the situation are senior figures who are knowledgeable and have good intentions. I ask everyone to take action for the interests of the country. I ask you all to tell people involved to bring peace by upholding public wellbeing, peace and unity. Think of how to diffuse the political situation," he said.

He walked away when asked if Prime Minister Thaksin Shinawatra should resign, and the statement was soon being beamed to homes across the nation.

Prem's plea comes as crisis-crippled Thailand enters a critical moment. Observers are calling for a return to stability before violence breaks out.

The prime minister apparently hopes to hang on until an election due on April 2, in order to regain a fresh mandate. But with tens of thousands of demonstrators surrounding Government House, albeit peacefully, there have been escalating fears of bloodshed.

Prem's abrupt statement also added intrigue to Sunday's broadcast by the TV Pool of footage of HM the King giving advice to military strongman Suchinda Kraprayoon and political maverick Chamlong Srimuang following bloody anti-government protests of May 1992.

The Office of His Majesty's Principal Private Secretary yesterday issued a statement denying that the Privy Council had called on broadcasters to stop airing the footage of the royal intervention in 1992.

A statement issued by the office denied media reports that Prem had told privy councillors on March 14 that the broadcasts should be stopped because Thaksin's opponents were exploiting the footage, saying the King's advice had been available to the public for 14 years.

Privy councillor General Surayud Chulanont said: "All sides must talk to iron out the conflict. I cannot offer suggestions because you are all adults."

Meanwhile, Thaksin was adamant he would not surrender to the escalating opposition.

"I will not give in to those villains who don't play by the rules," he told tens of thousands at a Thai Rak Thai election rally in Nakhon Ratchasima.

Earlier in Buri Ram, however, he suggested he had softened his stand, saying he was considering "going on a break".

Thaksin said the suggestion that he "take a political pause" was a good proposal to end the crisis. It was the first time he appeared to relax his positions since the crisis began.

"I will decide when the time comes in the best interests of the country but not under pressure,'' he said.

Reacting to Prem's statement, anti-government leader Sondhi Limthongkul said he thought it was a signal for Thaksin to step down.

Government Spokesman Surapong Suebwonglee said the administration would hold talks with the anti-Thaksin alliance behind closed doors to diffuse the tension.

"We are concerned that we cannot open up our hearts in negotiation. [If televised] the speakers may want to talk to the public rather than to find a solution,'' he said.

Democrat Party spokesman Ongart Klampaiboon said the party was willing to co-operate to end the stalemate but would not violate the party's stance. Party leaders will discuss Prem's statement today.