The Army chief yesterday told Prime Minister Thaksin Shinawatra that he saw no immediate need to announce a state of emergency, as the anti-government protests remained largely peaceful.

"I told him that if the military comes out too early, it will not be good for the government. The administration will be viewed in a bad light," said General Sonthi Boon-yaratglin, the Com-

mander-in-Chief of the Royal Thai Army.

The general met with Thaksin at Baan Phit-sanulok, the premier's official residence.

Sonthi said he had no real concerns over the marathon rally being held outside Government House, as it ap-peared to pose no threat to national security. "The protesters have re-mained peaceful and abided by the law. This is historic in a global context. I believe the demonstration is the most peaceful in the world and should be recorded in the 'Guinness Book of World Records'," he said.

Sonthi said he and the prime minister also discussed the frequent rumours that could cause damage and conflict in society.

One of the protest leaders, Sondhi Limthongkul, told the audience last night he had heard the government would declare a state of emergency by next Wednesday, citing the need for order ahead of the April 2 general election.

The Cabinet recently appointed deputy premier and Justice Minister Chidchai Vanasatidya, who is in charge of security affairs, as second in command to Thaksin. Chidchai is expected to issue a decree declaring a state of emergency if the ongoing civil disturbances get out of control.

Political gatherings are not permitted during a state of emergency and the mi-litary takes over from the police in dealing with public unrest.

The People's Alliance for Democracy (PAD), which has been staging the anti-Thaksin rallies, has set a 48-hour deadline for the premier to step down, or it will take a "decisive measure". The deadline is tonight.

Suriyasai Katasila, the PAD spokesman, suggested yesterday that the alliance would seek intervention from "a third power" to end the ongoing conflict between the public and the government. He did not elaborate about the third power.

Certain leaders of the PAD had earlier called for a royally appointed prime minister to replace Thaksin.

Suriyasai said yesterday that the PAD's "biggest" rally on Saturday would not be the final battle but rather "the beginning of a new strategy".

Thaksin yesterday chaired a meeting at the headquarters of the ruling Thai Rak Thai Party with key party figures to discuss the current situation. His wife Pojaman also attended the meeting.

It was agreed at the meeting that the PAD had given the 48-hour deadline because its leaders were split on whether the alliance would collectively seek a royally appointed prime minister, a source said.

However, key Thai Rak Thai figures were concerned tomorrow's gathering of Democrat Party supporters at Sanam Luang could be used as an excuse to mobilise participants for the anti-Thaksin rally, according to the source.

Meanwhile, former prime minister Anand Panyarachun called on those involved in the political conflict to avoid violence.

"People don't want to resort to violence as a means of solving problems. And we don't want to see a battle," he said at the Chulabhorn Research Institute, after giving a speech to members of the National Economic and Social Advisory Council.

Police spokesman Lt-General Ajiravid Subarnbesaj said yesterday that about 10,000 police would be on duty on Saturday for the rally by the anti-Thaksin alliance.

Sondhi predicted it would be the biggest demonstration yet, surpassing the record March 14 gathering.

However, police said they are not concerned as they have made plans for any eventuality, Ajiravid said.

"We can assure the people that we can deal with the rally," he said.