Malaysia's Deputy Prime Minister Najib Razak said yesterday that Malaysia would consider hosting peace talks between the Thai government and separatist organisations, but Bangkok remained non-committal about the future role of the neighbouring country.

"Only if we are invited: then we might consider it," said Najib Razak, who is also the defence minister.

But senior Thai security officials and rebel sources said the government did not consider Malaysia, or former Prime Minister Mahathir Mohammed, to be a neutral third party because of geographical proximity.

Past meetings between Thai officials and separatist leaders, facilitated by Mahathir, were conducted in an informal manner.

Future discussions beyond this informal setting would have to be done outside Malaysia and without Kuala Lumpur's participation or interference, said one security officer on condition of anonymity.

"This is extremely sensitive for Thailand. The issue is one of internal disagreement," he said.

Sukri Langputeh, from the Islamic College of Yala, dismissed concerns among officials that the "informal talks" with separatist organisations would elevate their status. He said the dialogue would be an opportunity to put all the issues on the table once and for all so that both sides could debate them fully.

A prominent Muslim activist in Thailand's Malay-speaking south, Munsoe Saleh, said European countries with experience in mediating talks between rebels and governments would be a better mediator than Malaysia.

Retired police officer Maj- General Charoon Den-udom, a prominent figure in the region, echoed Munsoe's concern. He said the political dispute between Mahathir and the central government under the leadership of Prime Minister Abdullah Badawi made Malaysia an unattractive place to mediate future talks.

Thai-Malaysian bilateral ties have been at their lowest ebb in recent years amid accusations from Bangkok that Kuala Lumpur was turning a blind eye to Muslim militants slipping across the border.

Thailand has asked Malaysia to extradite at least 20 suspected militants without success.

Najib told reporters yesterday he was hopeful that Thailand's new military government would take steps to bring peace to Muslim-dominated southern provinces.

More than 1,700 people have been killed since separatist violence erupted in Thailand's deep South in January 2004.

"We are hopeful of a political settlement in southern Thailand," Najib said. "This is a good window of opportunity for the new government to take up a new initiative. We hope there will be peace in the South and this will be achieved in the shortest possible time." he said.

Najib described Mahathir's initiative as a private one.

The Nation, Agencies