Thai junta may hold peace talks with Muslim insurgents

"There are signals from insurgent groups and local people that they are ready to cooperate for the sake of peace in the region," Lieutenant General Viroach Buacharoon, the new southern army commander, told reporters.

"But I have to wait for a clear sign from the government as to whether there will be negotiations or not," he added.

The September 19 overthrow of Thaksin sparked hope in the Muslim-majority south that an insurgency in Yala, Pattani and Narathiwat could be quelled.

The three provinces bordering Malaysia have been plagued by separatist violence and unrest since January 2004, and Thaksin's decision to impose emergency rule there in 2005 was widely criticized as inflaming the situation.

Coup leader General Sonthi Boonyaratglin, Thailand's first Muslim army chief, was tasked by Thaksin with solving the southern violence, and had gone against the government line by suggesting talks with the insurgents.

General Surayud Chulanont, who was appointed interim premier at the weekend, confirmed on Wednesday that Sonthi would be retaining his role in the south.

"Sonthi will continue to oversee security in the south in his capacity as chairman of the Council of National Security," said Surayud, referring to the name the military junta now goes by.

Surayud, who has vowed to put the southern unrest problem at the top of his agenda, said that his government may consider negotiations with leaders of the insurgency, but urged caution.

"It's too soon to say anything on this issue, we have to wait," he said. "There is no contact yet... I have to consult with others on this matter."

Nearly 1,500 people have been killed since the unrest erupted in January 2004. The violence has been blamed variously on ethnic Malay separatism, religious extremism, local police corruption and smuggling rings.