Sondhi, one of the leaders of the anti-Thaksin People's Alliance for Democracy, sent an open letter to Supreme Commander General Ruangroj Mahasaranond alleging that Thaksin had made an agreement with Cambodian counterpart Hun Sen during a visit to Phnom Penh on August 10, offering Cambodia half of Koh Kood island in the Gulf of Thailand in exchange for a gas concession.

Ruangroj said he would look into the allegation, adding the boundary demarcation was not arranged as simply as Sondhi claimed, and that it takes time.

The ministry said in a statement that Cambodia had never claimed rights over the island and asserted that it belonged to Thailand.

The two countries have not yet concluded  negotiations on the maritime border demarcation.

A memorandum of understanding signed by the two countries on June 18, 2001 said negotiations on the demarcation would be initially limited to areas above latitude 11 degrees north.

The remaining areas below this latitude would be considered as overlapping, which both sides agreed to jointly develop.

"But the agreement, if any, to jointly develop the overlapping areas would not affect sovereignty over sea," the ministry statement said.

Sondhi said if Thailand allowed Cambodia to join in developing the area, which is believed to have petroleum resources, it would automatically recognise Cambodian rights over the territory.

Sondhi also alleged that the caretaker prime minister offered two disputed villages in Phitsanulok province to Laos in exchange for permission for Thaksin to adjust his ThaiCom satellite beam, which overlaps that of a Laotian satellite.

However, the ministry said land demarcation with Laos was complete for over 90 per cent of the total length of the 702-kilometre boundary. The area around Ban Lom Klao in Phitsanulok, over which the two countries went to war in the early 1980s, has not yet been demarcated, the ministry said.

Thailand and Laos have a joint boundary committee to negotiate and demarcate the land border.

The demarcation was conducted under the framework of the joint committee, and has nothing to do with any satellite concession, the ministry said.

Tiny-landlocked neighbour Laos has not launched any satellites.

Sondhi once planned to launch a satellite in Laos but his concession expired years ago after his media empire collapsed during the economic crisis of 1997.