"With his popularity already plunging amid Thailand's diplomatic stand-off with Cambodia, which has offered him asylum and appointed him economic adviser, Thaksin found himself on the defensive again after the Times Online published his remarks on the issue of royal succession. The Times Online report was circulated like wildfire on the Web, prompting fiery criticism and catching the Pheu Thai Party off guard.

In an urgent statement, Thaksin strongly denied calling for a reform of the monarchy or suggesting the institution's shining era was still to come as Times Online I condemn Times Online for reporting lies and causing confusion over the matter. I want everyone to know I and my family are loyal to Their Majesties and are ready to sacrifice our lives for them," he said.

The full script of the interview was available on the Times Online website. It began with Thaksin making the generally known claims about being persecuted by "elites" close to the Royal Palace. He started making comments on royal affairs, such as the petition submitted by his supporters, Her Majesty the Queen attending the funeral of a yellow-shirt activist and royal succession only after being asked by the interviewer.

It was arguably Thaksin's most extensive public comments on royal affairs.

Although he stressed his loyalty to the monarchy and its importance to Thai society, he did strongly attack inner Palace circles and blamed their "jealousy" for his political downfall.

While he said His Majesty the King, or his successor, was the only person who could bring the Thai crisis to a close, Thaksin said he did not trust the Privy Council, which he claimed had become much too involved in the conflict to be a mediator.

A transcript showed Thaksin said: "The constitutional monarchy must be strictly abided by."

However, he said "Yes, yes" to the interviewer's question of whether a reform was needed, apparently to shore up the royal inner circles.

In his statement, Thaksin said the Times Online article was a total lie that had caused confusion, adding he had told the journalist, Richard Parry, several times the monarchy was a very sensitive issue and that the report should be as accurate as possible.

Prime Minister Abhisit Vejjajiva said he found the Times Online article to contain many "inappropriate" parts that both Thaksin and the news website needed to clarify.

He added that government legal officials were taking a close look at the transcript, although the prime minister declined comment on whether legal action would be taken against Thaksin.

This new controversy could complicate Thaksin's plan to visit Phnom Penh this week to address Cambodian businessmen at the invitation of premier Hun Sen. In his interview, Thaksin all but ruled out exile in Cambodia, saying digital technology would allow him to help from outside the country.

"They [the Democrats] are very childish. They're afraid if I were there, my supporters would be more upbeat, because I'd be close. I'm not going to stay, I know it's too close, but I will visit from time to time," he was quoted as saying on Times Online.

"I can work [for Cambodia] online. I can work through e-mail, but I want to thank Hun Sen in person. After he announced the royal decree, I rang him t

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