"Even though Thaksin may not have an ulterior motive, his ongoing tour of China, Hong Kong and Singapore has triggered wild speculation, inflaming the fragile situation," he said.

Banharn said Thaksin should come to terms with political reality and should consider retirement instead of harbouring hopes for a comeback by contesting the next general election.

He also said the international community would not see Thailand as a pariah because of martial law.

"As prime minister, I attended several international meetings, including two Apec summits, and know that foreign leaders will not interfere with domestic politics," he said, adding that his party had not felt any impact from martial law.

Supreme Commander General Boonsarng Niumpradit said the authorities had to be sure about political stability before ending martial law, and it should happen soon - although not as early as many have speculated.

"The situation has not been completely normalised - though this is not a serious concern, the review of the enforcement of martial law will not happen until things return to normal," he said.

Boonsarng said the Council for National Security (CNS) still deemed it necessary to enforce martial law in light of suspicious political activities.

Defence Minister Boonrawd Somtas said that the CNS and interim government were in complete agreement on the need for martial law. "The situation remains unstable and the CNS needs time for security checks before setting a timetable for lifting martial law," he said.

Boonrawd said the end of martial law would hinge on the overall security situation and not just if subversive activities continued upcountry.

However, the Thai Rak Thai Party acting leader Chaturon Chaisang yesterday said retaining martial law would do more harm than good to the country's image in the eye of the international community.