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			 While troops patrolled parts of Bangkok and army spokesmen took to 
			the airwaves, the caretaker government led by supporters of 
			self-exiled former premier Thaksin Shinawatra said it was still 
			running the country. 
 Army chief General Prayuth Chan-ocha said the military had stepped 
			in to restore order and build investor confidence, and warned that 
			troops would take action against anyone who used weapons and harmed 
			civilians.
 
 "We ask all sides to come and talk to find a way out for the 
			country," Prayuth told reporters after meeting directors of 
			government agencies and other high-ranking officials.
 
 Military officials said they were not interfering with the caretaker 
			government, but ministers were not informed of the army's plan 
			before an announcement on television at 3 a.m. (4 p.m. EDT on 
			Monday) and Prayuth said martial law would be maintained until peace 
			and order had been restored.
 
 
			 
			Twenty-eight people have been killed and 700 injured since the 
			anti-government protests began in November last year.
 
 The crisis is the latest installment of a near-decade-long power 
			struggle between former telecoms tycoon Thaksin and the royalist 
			establishment that has brought the country to the brink of recession 
			and even raised fears of civil war.
 
 NO MARCHES
 
 Both pro- and anti-government protesters are camped out at different 
			places in the capital and, to prevent clashes, the army told them 
			they had to stay put and could not march.
 
 The army also called on media not to broadcast material that would 
			affect national security and ordered 10 satellite TV channels, 
			including both pro- and anti-government stations, to stop 
			broadcasting.
 
 The caretaker government, wary of the army given its past 
			interventions on the side of the establishment, said it welcomed the 
			move to restore order and that it remained in office.
 
 "The army's actions must be under the framework of the 
			constitution," caretaker Prime Minister Niwatthamrong 
			Boonsongphaisan said in a statement.
 
 Thailand has been stuck in political limbo since Prime Minister 
			Yingluck Shinawatra, Thaksin's younger sister, and nine of her 
			ministers were dismissed on May 7 after a court found them guilty of 
			abuse of power.
 
 The military, which put down a pro-Thaksin protest movement in 2010, 
			has staged numerous coups since Thailand became a constitutional 
			monarchy in 1932. The last one was in 2006 to oust Thaksin, who has 
			lived abroad since 2008 but wields political influence and commands 
			huge support among the poor.
 
 Anti-government protesters want a "neutral" prime minister appointed 
			to oversee electoral reforms aimed at ending Thaksin's influence. 
			The government views an early general election it would likely win 
			as the best way forward.
 
 "PHANTOM COUP"
 
 Thaksin said anyone following political developments could have 
			expected martial law.
 
 "I hope that no side will violate human rights and damage the 
			democratic process more than it has already been," he said in a rare 
			message posted on his Twitter account (@ThaksinLive).
 
 
			 
			The army tried to mediate in the crisis late last year, bringing 
			together then premier Yingluck and anti-government protest leader 
			Suthep Thaugsuban. It has played down fears of a coup, stressing 
			that politicians must resolve the dispute.
 
 But Human Rights Watch called Tuesday's army action a "de facto 
			coup" while a political analyst said it was a "phantom coup".
 
 "There was no consultation with the government and I think the 
			military will slowly expand its powers and test the waters," said 
			Kan Yuenyong at the Siam Intelligence Unit think-tank.
 
 "For this to be a success the army needs to act like a neutral force 
			and not be seen to side with the anti-government protesters. It 
			needs to offer an election date and start a political reform process 
			at the same time."
 
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			Martial law gives the military broad powers over civilian 
			authorities, but a full coup would likely incur costs in terms of 
			greater damage to investor confidence and U.S. sanctions.
 The United States, which cut aid to its military ally after the 2006 
			coup, said it was monitoring the situation closely.
 
 "We expect the army to honor its commitment to make this a temporary 
			action to prevent violence, and to not undermine democratic 
			institutions," U.S. State Department spokeswoman Jen Psaki said in a 
			statement.
 Prayuth had warned last week, after three people were 
			killed in an attack on anti-government protesters, that troops might 
			have to be used if violence continued.
 "The army chief was moving towards imposition of martial law ever 
			since his announcement last week," said a senior army official, who 
			spoke on condition of anonymity. "He now feels that the police 
			cannot handle security and is alarmed by grenade attacks and other 
			incidents and the fact neither side looks like it will back down."
 
 Troops initially stopped some traffic from entering Bangkok, took up 
			positions at some intersections and secured television stations but 
			life went on as normal in most of the city.
 
 "NO COUP YET"
 
 The baht fell against the dollar in early trade but steadied later 
			and dealers suspected that was due to intervention by the central 
			bank. At 5 a.m. EDT the baht was quoted at 32.53 per dollar after 
			earlier trading at a low of around 32.64.
 
 The stock market was down 1.1 percent in late trade.
 
 Six months of turmoil has dragged down Southeast Asia's 
			second-biggest economy, which shrank 2.1 percent in the first 
			quarter of the year.
 
			 Andrew Colquhoun, Head of Asia-Pacific Sovereigns at ratings agency 
			Fitch, said martial law was not necessarily negative for Thailand's 
			government debt, and might help break the deadlock.
 "The key factors for the ratings are whether Thailand can avert more 
			serious and bloody political disorder, and whether we see a return 
			to a fully functioning government that is able to make policy and 
			pass a budget for the next fiscal year starting in October," he 
			said.
 
 Opposition supporters disrupted a February 2 election which was 
			later declared void by the Constitutional Court. The protesters 
			reject any vote before electoral reforms and the Election Commission 
			has said it does not think a poll tentatively scheduled for July 20 
			can go ahead.
 
 The leader of Thaksin's pro-government "red shirt" loyalists, who 
			are rallying in Bangkok's western outskirts, appealed for calm but 
			warned of trouble if the government was ousted.
 
 "Our stance is the same. (We) will not accept a neutral prime 
			minister. If soldiers appoint a prime minister then we will escalate 
			our rally," Jatuporn Prompan told a news conference. "Stay calm, 
			there has been no coup yet."
 
 Anti-government protesters said they too had not changed their 
			demands for the caretaker government to go.
 
 (Reporting by Bangkok Bureau; Writing by Robert Birsel; Editing by 
			Alan Raybould and Alex Richardson)
 
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