Cambodia desperate for Thaksin: Hun Sen

"I understand the feelings of the Thai people, that they want Thaksin to return and serve them but he has not been given the chance," Hun Sen said.

"I am grateful to those Thais who understand the desire of Cambodian people to get help from Thaksin, who has agreed to help Cambodian people."

In his second day in Phnom Penh, Thaksin spent four hours in a private meeting with Hun Sen before briefing selective journalists.

Hun Sen said he had chosen Thaksin as his adviser because he admired the former PM and was impressed with how he restored the Thai economy after the 1997 financial chaos and his policies for neighbouring countries. He added that during Thaksin's time, Thailand enjoyed good relations with its neighbours and always lent a helping hand to countries like Cambodia, Laos and Burma.

The Cambodian PM, who has been a close friend of Thaksin's for more than two decades, believes his comrade is a political victim ousted through a military coup in 2006. This is why, he said, Phnom Penh will not extradite Thaksin.

"It is pretty sad. From a very popular politician, a millionaire, he can't even find land to live on or a passport to travel with," Hun Sen said.

He added that Thailand should be proud of Thaksin, because his appointment had been approved by the king of Cambodia, and insisted that giving the former PM this job had nothing to do with bilateral ties.

"I am not interfering in Thailand's internal affairs, but I need a person with economic wisdom to help Cambodia," he said. "Thaksin is a Thai and he will not go against Thailand or the interests of the Thai people."

Thaksin has said he will help Cambodian economic planners achieve three things: understanding capitalism and developing the financial sector; eradicating poverty through His Majesty's sufficiency economy theory; and attracting more foreign investment.

Hun Sen also accused the Thai government of being locked in the Cold-War mentality of believing that all neighbouring countries are enemies, but the world has changed and now neighbours can be partners, he said.

"The combined GDP of Cambodia, Laos and Burma is only 10 per cent of Thailand's GDP, so why are you all so worried," he asked. "If your neighbours are still so poor and you are rich, so why won't you help them.

"I feel honoured and I will try my best to work for the mutual benefit of the two countries," Hun Sen said at the press briefing.