Caretaker Prime Minister Thaksin Shinawatra is surrounded by supporters as he prepares to make a speech at Wongwien Yai yesterday.

Embattled Prime Minister Thaksin Shinawatra yesterday proposed the establishment of a "national government" after next Sunday's election and offered to reserve some Cabinet seats for the opposition, which is boycotting the poll.

The surprise offer came in the middle of a belligerent election rally speech at Wongwian Yai, where he vowed to fight to the death for democracy.

"Thai Rak Thai (TRT) is ready to form a national government to solve the current problems and end all the trouble and conflicts," he told a cheering crowd.

"Quotas will be given to the opposition parties, regardless of whether they contest the election."

Thaksin said he would be ready to welcome the Democrat Party and other smaller parties to join the national government to carry out political reforms and solve urgent problems facing the country.

Suriyasai Katasila, a spokesman for the anti-Thaksin People's Alliance for Democracy, said Thaksin's resignation would be preferable to a national government.

"It is unacceptable to either the opposition or the PAD for Thaksin to promise a national government after the April 2 election. This is an attempt to earn himself legitimacy," he said.

While the election looks set to take place despite the opposition's boycott and the anti-Thaksin alliance's call for a royally-appointed prime minister to break the present deadlock, the poll faces a serious legitimacy problem.

TRT is unlikely to win 20 per cent of the vote in certain uncontested constituencies, and this means there may not be the 500 MPs required by the Constitution, raising the question of whether an incomplete House can convene to name a new prime minister.

In an interview, deputy TRT secretary-general Phumtham Vejjayachai clarified Thaksin's offer, saying "all interested parties", not only the opposition bloc, would be invited to join the national government.

"Everyone interested in helping us solve the crisis will be invited," he said.

Asked if Thaksin would be prime minister of a national government, he said: "That's a different issue. The prime minister has said he would return to office only when Thai Rak Thai wins a certain number of votes."

Thaksin said he would not accept the premiership if TRT won fewer votes than the combined number given to smaller parties and abstentions.

But Phumtham said that even if TRT failed to win enough votes for Thaksin to return the party would still make up the core of the next government.

"If we do not win more than half the votes, we are ready to form a national government. Anyone interested can come and talk to us," he said.

Meanwhile, Democrat Party spokesman Ong-art Klampaiboon said he could not comment on Thaksin's recent proposal, as it must be submitted to the party first.

Deputy Democrat leader Alongkorn Polabutr yesterday said the party would hold a meeting today to discuss the matter and adopt its stand.

"This could be Thaksin's attempt to ease the mounting political pressure and to buy time to stay in power past election day," he said.

Thaksin's election campaign at Wongwian Yai yesterday was his second major address in the capital, following the large rally by his supporters on March 3 at Sanam Luang. Thaksin arrived in Wongwian Yai at 5.45pm, where he was greeted by a large number of motorcycle taxi drivers.

Some of Thaksin's supporters distributed handbills with a picture of His Majesty the King advising then prime minister Suchinda Kraprayoon and anti-Suchinda protest leader Chamlong Srimuang during the bloody political turbulence in May 1992.

Others sold "Thaksin fight on!" T-shirts for Bt20. Another group of more than 100 taxi drivers and motorcycle taxi drivers waved flags and banners, and drove their vehicles around Wongwian Yai's large roundabout.

Chants of "Thaksin fight on! Thaksin fight on!" could be heard.

Thaksin said he was confident that the voter turnout for the election on Sunday would exceed 20 per cent.

He has scheduled another campaign rally on Friday at Lumpini Park.

Key members of Thai Rak Thai gave speeches attacking the opposition over the election boycott, saying it was undemocratic, and urged the supporters at Wongwian Yai to vote to preserve the democratic system.

They also slammed Democrat Party leader Abhisit Vejjajiva over his suggestion last Friday that Thaksin resign and His Majesty the King appoint a new government.

"Abhisit is the underling of Sondhi [Limthongkul, a leader of the anti-Thaksin movement]. Sondhi told him to tear up the Constitution, and Abhisit obeyed," Sudarat Keyuraphan said from the stage.

Shortly after 6pm, Thaksin took the stage and said Thai Rak Thai is ready to form a national government to solve the political crisis. Moreover, he said, he would offer other political parties a chance to submit the names of candidate cabinet ministers.

As Thaksin spoke, supporters from Thonburi started up another "Thaksin fight on!" chant, giving the premier a chance to take a break from speaking.

Earlier, while visiting a health club in the morning, Thaksin told reporters he would respect the people's voice as it was expressed through the election on April 2.

Asked whether he was worried about a confrontation between his supporters and protesters, Thaksin replied: "I hope all sides will respect the voice of the people after the April 2 election."

Thaksin said a lot of people came out to cast advance votes on the weekend, showing that they cherished democracy.

He said he did not mind if he did not become prime minister for another term, but simply wanted to protect democracy by having the election go on.

Samatcha Hunsara

The Nation