Now, Thaksin is officially Hun Sen's economic adviser

Thai-Khmer ties will take a deep plunge now that Kyodo News reported that Thaksin Shinawatra has been appointed as economic adviser to Cambodian Prime Minister Hun Sen and his government, the office of the government's spokesman said today.

According to the statement, the appointment was made by King Norodom Sihamoni on Oct. 27 at the request by Hun Sen.

It said Thaksin, who fled Thailand in August last year shortly before a court sentenced him to two years in jail for breaking a conflict of interest law while he was in power, is free to travel or reside in Cambodia.

Thailand has several times said it would seek extradition if Thaksin is confirmed to be in Cambodia, but Wednesday's statement said Cambodia would not do so even if there is such a request.

Thaksin was ousted from the premiership in 2006 in a bloodless coup.

He is believed to be mostly residing in Dubai.

He posted on blog last month that he "truly appreciates Prime Minister Hun Sen for his kind offer and bravery to tell the public that I am his friend."

PM Abhisit has said if Thaksin lands in Cambodia, his government will seek his extradition. Thaksin was said to be planning to visit Cambodia to join the Loy Krathon Festival on Nov 2. He later denied the report. Pheau Thai Party's Chairman Chavalit Yongchaiyudh said Thaksin decided not to go to Cambodia "because he didn't want to create problems for people concerned."