"Report positively and you will be rewarded; report negatively and suffer the consequences," said Surayud at a dinner hosted by the Foreign Correspondents' Club of Thailand last night.

[Read the full speech]

Surayud said that over the past five years, Thais had "suffered from a deformed media environment".

"Broadcast media were muzzled, news coverage was state-directed. I believe that is called propaganda," he said.

Regarding the September 19 coup, Surayud said the Council for National Security would issue a "white paper" explaining why it had to oust the Thaksin regime.

While falling short of justifying the September 19 coup, Surayud said he never would have accepted the premiership had he not been absolutely sure the motives for the "military intervention in the governance of this country were entirely honourable and in the public interest and that their actions were taken only with the greatest reluctance".

"First, what Thailand has experienced over the last five years may have had the form of democracy but certainly not the content," said Surayud.

"It was the camouflage of electoral politics subverting the true democratic principles of the rule of law, justice for all, honesty and transparency in government and respect for human rights. This subversion of democratic principles was not the mandate given to the government by the people; rather it was a mandate unilaterally shaped by a political party that pulled together unprecedented political and financial power, power so great that all the checks and balances so carefully built into the 1997 Constitution were neutralised," he said.

Besides the need for a freer media and a rationale behind the coup, Surayud said successful political reform remained the government's top priority.

"By successful political reform, I mean that in one year's time we will have a new constitution, ratified by the people in a national referendum, which will form the basis for a more just, more egalitarian and more democratic society," he said.

He said the government intended to stimulate a broad, inclusive national debate focusing on the "choices about what sort of society we wish to live in and what sort of society we wish our children to inherit".

He said the government planned to form a Political Development Council to stimulate this national debate and accelerate the pace of political reform.

"Let me emphasise at this time that I am not talking about government-directed political reform. This interim government does not have the moral authority to impose its ideas concerning political reform on our citizens. It will be their choices, hopefully made from a more informed view point," he said.

Surayud said the second major challenge was a reduction in social and political tension within all sectors of the society.

He pointed to the three Malay-speaking southernmost provinces, where "violent death has become a daily tragedy".

Surayud said his "unreserved apology" to the residents of the deep South reflected his notion that "every citizen of Thailand must share the burden of this situation".

Besides dropping all charges against the 92 Tak Bai protesters and reinstating the Southern Border Provinces Administrative Centre to help with national reconciliation, the government plans to use the recommendations from the National Reconciliation Commission as basic guidelines for government policy towards the restive region.

On the issue of inequality, in spite of 40 years of rapid economic development, Thailand today still has far too many poor people who have not benefited from this economic development to the extent they should have.

"This great divide between the rich and the poor is also a divide in terms of opportunity. In a fair, just and democratic society, each citizen should have equal opportunities for education, health, a productive working life and a graceful retirement. This is not the situation today."

Surayud said the government planned to undertake far-reaching and drastic reforms in the administration of justice, in the police and in the permanent strengthening of anti-corruption agencies.

"I understand that between such good intentions and their effective implementation, many politicians' promises have been lost. But I am not a politician, and I am not bound by special interests. Moreover, I have the authority and the power that comes with being an appointed prime minister to act quickly and decisively," Surayud said.

He said Thailand would continue to be an open-market economy and that his notion of growth embraced not only competitiveness, but also sustainable development, social justice and contentment.

"Growth must come with good governance in relation to how the government operates and how business is conducted. The way rules and regulations governing commercial and investment practices are implemented will be improved through greater transparency and hence predictability. We will do away with double standards," he said.

Corruption was one of the central justifications for the ousting of the Thaksin regime.

Surayud admitted during the question-and-answer session that he once spoke to Thaksin on the telephone after the coup and said the ousted premier "was concerned about his belongings and his family".

When asked if he would remain premier even after the 12-month deadline he had given himself, Surayud replied, "I hope I won't be around."