In party politics, tensions continued between the Democrats and their coalition partners. Though certain circumstances and developments seemed to encourage the parties to back off from their points of conflict.

               The governing coalition made progress in securing funds for its spending plans. Parliamentary debate of the government’s executive decree and legislation authorizing raising of funds was televised. The opposition accused the government of seeking too much money and of having unclear plans for spending; they also suggested a budget shortfall should be remedied through cuts to military budgets. The House approved the executive decree for borrowing 400 billion baht, and a full House committee composed of government MPs approved a bill for borrowing another 400 billion baht after opposition MPs walked out of the House. On 23 June Senate Speaker Prasobsuk Boondech closed the session of the Senate at 11.35pm, about 25 minutes before the deadline established by royal decree and before the Senate had time to deliberate the bill to authorize borrowing; he said that there was no time to deliberate and vote on the legislation. The Senate had already approved the executive decree for borrowing of 400 billion baht.
               In early June, cabinet referred the controversial bus leasing project, which was supported by the Bhumjaithai-controlled Transport Ministry, to the National Economic and Social Development Board (NESDB) for independent study. The move was widely seen as a time-buying measure. The project has been criticized as excessively expensive. Bhumjaithai figure Newin Chidchob spoke out to declare that his party is pushing for the project in order to attract Bangkok voters, not to reap any financial benefits. Bhumjaithai then began a public relations campaign touting the benefits of the project. The NESDB presented its report at the end of the month, reaching several conclusions (that the Bangkok Mass Transit Authority’s improvement plan should improve the agency’s performance but not put a greater burden on the government; that passenger usage estimates should be used to determine the number of buses needed; that bus routes should be revised to eliminate redundancy; and that measures should be devised to guarantee better and safer services) but avoiding the question of whether the project should be implemented. The report did not satisfy cabinet or observers, and cabinet told the NESDB to produce a more concrete conclusion within one month. A government source reportedly claimed that the Democrat Party and Bhumjaithai Party reached a compromise in which the Democrats will stop resisting the bus leasing scheme once the new NESDB study was concluded, and in return Bhumjaithai will give Democrats more influence crop mortgage policy (under the Bhumjaithai-led Commerce Ministry), which had also been a subject of contention.  
               Rumor from within the Democrat Party suggested that influential figures Chuan Leekpai, Banyat Bantadtan and even Prime Minister Abhisit Vejjajiva were upset with party secretary Deputy Prime Minister Suthep Thaugsuban, and believe that he makes too many concessions to the government’s coalition allies. There were further rumors, denied by government figures, that the Democrats were making preparations to eject some coalition partners to attempt governing as a minority government. There was even gossip about Democrat attempts to form an alliance with Puea Thai.
               Bhumjaithai Party’s confidence and assertiveness appeared to be somewhat dented by the results of House by-elections held in Sakon Nakon and Si Sa Ket. In both races, the Puea Thai candidates appeared to win by very comfortable margins against Bhumjaithai rivals. Puea Thai figure Chalerm Yubamrung was quick to proclaim that the result shows that people still love Thaksin Shinawatra. Bhumjaithai spokesman Supachai Jaisamut complained that Puea Thai won in Sakhon Nakon because Thaksin Shinawatra made phone calls soliciting support of kamnan and village chiefs.
               Although the Puea Thai by-election victories may have helped the Democrats in their dealings with Bhumjaithai, they were also a reminder of Puea Thai’s enduring popularity, and the government’s unpopularity in Puea Thai-dominated areas. Public Health Minister Witthaya Kaewparadai, on a tour of northern provinces to inspect H1N1 readiness, reportedly fled from a Chiang Mai hospital after about 200 anti-government demonstrators took the hospital’s front gates and tried to force their way inside past security guards.
              The Election Commission (EC) has concluded that 17 senators have violated the constitution by holding stakes in media organizations and companies doing business with the state, after investigating 37 senators based on complaints made by Puea Thai and one senator. The EC will recommend to the Constitution Court that the 17 senators be disqualified (one had reportedly resigned already). The EC was also investigating accusations that reportedly 71 MPs including Deputy Prime Minister Suthep Thaugsuban also violated the constitutional restrictions on holding shares in media organizations or business doing business with the state.
               Rassadorn Party has changed its name to Matubhumi (Motherland); the party consists largely of politicians from the South. The party planned to hold a general assembly early in July, with former Puea Paendin deputy leader Mun Patanotai seen as likely to become the party leader. Observers suggested, however, that whoever leads will only be a placeholder for Gen Sonthi Boonyaratgalin, who had recently been touring the South, and had enrolled in the Election Commission’s course on the basics of Thai politics. A party source said that one of the party’s major policies will be ending the conflict in the South.
               In early June, People’s Alliance for Democracy members named Somsak Kosaisuk (one of PAD’s five core leaders) as interim leader of their new political party, New Politics Party. PAD named 20 other executive members, including Suriyasai Katasila as secretary. With the selection of an executive, New Politics Party could begin the process of registering with the Election Commission. The party planned to hold a general assembly 60 days after registration in order to choose a permanent executive board. Suriyasai told the press the party would start with 20-30 MPs rather than aim for more. He said that the party would both compete with and be an ally of the Democrat Party.
               Police released a list of 52 people to be charged with various criminal offences including terrorism in connection with the closure of Suvarnabhumi and Don Muang airports last year. The list includes major People’s Alliance for Democracy leaders (including Sondhi Limthongkul, Chamlong Srimuang Pibhob Thongchai and Somsak Kosaisuk who now is leader of New Politics Party) and Foreign Minister Kasit Piromya. All those named were ordered to appear before police by 16 July. Suriyasai Katasila, PAD figure and secretary-general of New Politics Party, said that all PAD members summoned would appear because they were confident that the airport demonstrations were legitimate exercises of constitutional rights to hold peaceful rallies. He complained that the charges were politically motivated, implying that they were an attempt to undermine the New Politics Party. PAD declared it would file criminal and malfeasance charges against police and Prime Minister Abhisit Vejjajiva for charging PAD figures with criminal offences including terrorism in connection with the blockades. Despite calls from Puea Thai party for Kasit’s resignation, Prime Minister Abhisit Vejjajiva said that Kasit will remain in office for now as he fights the charges. Some observers have recalled that with his appointment in February, Kasit promised to resign if he were actually charged. Abhisit repeatedly defended Kasit, in July insisting that Kasit meets the ethical standards for cabinet members and should remain in cabinet. (Cabinet members facing prosecution are apparently supposed to resign, but Abhisit reportedly pointed out that Kasit had only been summoned.)
               The United Front of Democracy Against Dictatorship (UDD) held a major rally at Sanam Luang on 27 June, drawing an estimated 30,000 people. Leader Jatuporn Prompan declared that UDD wants to get rid of the amarthayatipatai system (sometimes translated as bureaucratic polity) under which nobles and bureaucrats rule the country. Jatuporn accused the government and the military of plotting to destroy the UDD. Thaksin Shinawatra addressed demonstrators by phone, thanking supporters for Puea Thai’s by-election victory in Sakon Nakhon and (in anticipation of a victory) in Si Sa Ket. He asked supporters not to leave him alone, and said he would like to return home. Veera Musikhapong asked followers’ support for a petition seeking a royal pardon for Thaksin. UDD figure Surachai sae Dan reportedly broke ranks with other UDD leaders to oppose the pardon petition. In response to the pardon declaration, various figures, including a Privy Council member, spoke out to suggest that the petition was improper. The Corrections Department declared that the Criminal Procedural Code clearly requires a convicted offender to comply with the verdict and serve prison time before being eligible for a royal pardon. Meanwhile, a group of senators (who were apparently opposed to a pardon) asked the Office of His Majesty’s Principal Private Secretary to clarify procedures for seeking a royal pardon. Some UDD figures announced the intention to gather at Sanam Luang on 26 July to celebrate Thaksin Shinwatra’s birthday. Bangkok governor MR Sukhumbhand Paribatra decided not to allow the celebration, justifying the decision by saying that the grounds are for royal ceremonies and activities held for organizations rather than individuals, and threatened legal action if the gathering were to goes ahead. An aide to Thaksin Shinawatra reportedly announced that Thaksin told supporters not to gathering at Sanam Luang.  Organizers were undeterred and plans proceeded.  
               The trial of Daranee Charncherngsilpakul on lese majeste charges began. The presiding judge ordered that the trial will be conducted behind closed doors on grounds of national security. Daranee’s lawyer has complained that the absence of public and media access would make it even more difficult to fight the charges. Meanwhile, a lese majeste complaint was lodged against the entire board of the Foreign Correspondents’ Club of Thailand by a translator, Laksana Kornsilpa. Laksana accused the FCCT of insulting the monarchy by producing and selling DVDs that included the remarks made by Jakrapob Penkair in a speech to the club in August 2007; Jakrapob already faces lese majeste charges for the remarks.
               Defence Minister Gen Prawit Wongsuwan declared that no demonstrations whatsoever—not even peaceful gatherings—would be allowed in Phuket during the ASEAN gatherings there on 17-23 July. Later, it was reported that Cabinet decided to enforce the Internal Security Act in Phuket for the ASEAN ministers meetings; Deputy Prime Minister Suthep Thaugsuban declared that no demonstrations would be allowed in areas with road access to the meeting venue.
               The State Railway of Thailand Labour Union took up opposing the government’s plan to split the loss-making State Railway of Thailand, which owed debts of 70 billion baht, into an operations arm and a property management arm; the union asserted that the change would be a precursor to privatization and ignored government denials. Railway workers first threatened a strike, and then staged a surprise work stoppage, which forced the government to delay implementation of the plan.
             Thailand continued its campaign against Cambodia’s attempt to register Preah Vihear as a World Heritage site. At the World Heritage Committee meeting in Spain, the Thai delegation asserted that registration by Cambodia would compound conflicts, breaching the principles of the world heritage system. Thailand argued that the temple should be registered jointly by Thailand and Cambodia. The stance rekindled the border dispute. High-level meetings between Cambodian and Thai ministers took place, with Thais playing down the conflict when talking to the media. Deputy Prime Minister Suthep Thaugsuban declared success upon returning from a visit with Prime Minister Hun Sen of Cambodia, saying that both countries had agreed to reduce the military standoff in the temple area. Nevertheless, it was also reported that Cambodia  deployed an additional 500 soldiers, and Prime Minister Abhisit Vejjajiva soon also said that Thailand would not withdraw troops. Later, talks between Thai and Cambodian army commanders reportedly fell apart after Cambodia rejected a Thai proposal to halve the number of soldiers of both countries in the immediate vicinity of the temple. Cambodia instead insisted that all Thai soldiers stationed at the disputed border be withdrawn. Cambodian prime minister Hun Sen was quoted in the Cambodian press as saying that the country is prepared to use all means to defend its sovereignty; Prime Minister Abhisit Vejjajiva also said that Thailand is ready to fight, though he quickly added that both sides have agreed that war is not a solution.
              On June 8, in Narathiwat, at least 12 Muslims were killed and 11 seriously injured when a group of gunmen attacked a mosque during evening prayers. Internal Security Operations Command (ISOC) spokesman Prinya Chaidilok insisted that authorities were not involved in the shooting and denied rumors that security forces undertook the attack in order to provoke unrest in the South for their own benefit. Army chief Gen Anupong Paojinda rejected the idea that security forces were involved and denounced the shooting as cruel and barbaric; he speculated that the attack was intended to draw international attention and create the impression that the state is harming the people. After some investigation, ISOC asserted that the attack was the work of outsiders, brought in by local youths, and concluded based on spent bullets retrieved from the scene, that the incident was linked to an attack on a mosque in another district on 2 June 2007. ISOC theorized that recent attacks are the work of a new generation of militants, trained overseas and taught to discard religious beliefs, making it easy for them to attack religious establishments. Locals, however, reportedly still suspected the attack involved Thai security forces. Prime Minister Abhisit subsequently said that relevant cabinet members will discuss revisions to policy in the South. He asserted that recent violence has been different from previous violence, and that the mosque shooting did not follow the pattern of insurgent violence authorities have seen before. Abhisit insisted that development is the long-term solution to problems in the South, but insurgents want to block development. Within a week of the attack, cabinet approved a three-year, 54-billion-baht development plan to improve quality of life in the South. Projects were proposed by the National Economic and Social Development Board. In the wake of the attack, Deputy Prime Minister Suthep Thaugsuban announced that the government has set a three-year deadline to get rid of insurgency and bring permanent peace to the South, though he did not elaborate on how the deadline would be met. Visiting Narathiwat, Suthep said that police have evidence to arrest those responsible for the mosque shooting and gave assurances that those responsible were not state officials; he asked villagers for restraint and tolerance. In Bangkok, Prime Minister Abhisit Vejjajiva said that insurgents are trying to force the government to resort to violence, but the government will continue to address the situation with restraint and development funding.
               H1N1, otherwise known as swine flu, spread, causing public health concerns. After prominent press and daily infection reports, in mid June, the Ministry of Public health reportedly ordered health authorities to stop announcing H1N1 infection figures on grounds that the disease had proven to be no more dangerous than the common flu, but after a short time, announcement of figures resumed. The opposition made efforts to portray the matter as a political issue.