PAD supporters protest on into the night against the government after Interior Minister Chalerm Yoobamrung said the crackdown plan had been cancelled.

Prime minister's morning threat to remove PAD protesters fizzles out by evening

Ten hours of stand-off between the government and the People's Alliance for Democracy was defused last night after the government backed down on its threatening "ultimatum".

PM Samak Sundaravej had promised in an emergency broadcast he'd crackdown on PAD demonstrators if they failed to disperse.

Hearing this yesterday morning, alliance leaders vowed to carry on until Samak resigned.

But Interior Minister Chalerm Yoobamrung told television news about 7.40pm the government would not use force to end the protest at Makkhawan Bridge on Rajdamnoen Avenue.

He says protesters can continue as long as they stay within the law.

More than 10,000 people are at the rally. Many came after hearing Samak's emergency broadcast vows to remove the demonstrators with force.

"PM Samak said he would use force to end the rally because he received reports that troublemakers planned to provoke the situation and turn it into violence," Chalerm says.

Thaksin intervention?

Former PM Thaksin Shinawatra, who is concerned about clashes if a crackdown ensues, reportedly asked Chalerm to get Samak to ease his rhetoric.

Thaksin believes the rally will end soon because most people don't support it. He's worried a crackdown will stymie his efforts to negotiate his smooth return with "influential figures", too.

Chalerm says he's now responsible for all briefings on the government's response to the demonstration.

Government coalition leaders including Puea Pandin's Suwit Khunkitti and Chart Thai's Banharn Silapa-archa huddled together at a city restaurant to assess the situation. They're said to be worried.

Following Samak's statement, 2,000 riot police were deployed to the protest site.

PAD guards surrounded demonstrators. There were stand-offs but no clashes.

Alliance leaders Sondhi Limthongkul and Chamlong Srimuang are encouraging supporters to join the crowd. However, they warn people to be prepared to protect their lives if police use force. There are concerns tear-gas will be employed.

The rally has swollen from about 1,000 early yesterday morning.

A 6pm rumour suggested police were about to arrest alliance leaders. Nothing happened.

Throughout the day police repeatedly pleaded with protesters to move to a new location. However, officers were restrained in their efforts.

Police top brass attempted to persuade the PAD to move the rally to outside the Bangkok Metropolitan Administration or Chatuchak or Lumpini parks but were rebuffed.