(Posted by CAAI news Media)
* Thai foreign minister says move "would not seem right"
* Thai foreign minister says it should respect agreements (Adds comment from Thai foreign minister)
By Viparat Jantraprap
BANGKOK, Nov 19 (Reuters) - Deepening a diplomatic row, Cambodia has taken control of a Thai-operated air traffic control company at the centre of spying allegations, a step Thailand's foreign minister said "would not seem right".
The Cambodian government has appointed a senior Civil Aviation official as temporary caretaker for Cambodia Air Traffic Services (CATS), a wholly owned unit of Thailand's Samart Corporation Pcl SAMA.BK, Samart said on Thursday.
All Thai expatriates at the company have been banned from performing their duties, it added.
The neighbouring countries are embroiled in a diplomatic row sparked in October when Cambodian Prime Minister Hun Sen offered fugitive former Thai premier Thaksin Shinawatra a job as an economic adviser and a home just across the border.
Thaksin, twice elected but deposed in a 2006 military coup and sentenced last year to two years in jail for graft, has been living in self-imposed exile, largely in Dubai. He spent five days in Cambodia last week, infuriating the Thai government. [ID:nSP128507]
A Thai engineer working for CATS has been accused of sending Thaksin's flight schedule to a Thai diplomat, who was expelled by Phnom Penh, and violating Cambodian national security laws.
Samart, 19 percent owned by Malaysian telecommunications firm Axiata Group (AXIA.KL), said on Thursday it was seeking support from the Thai government on negotiating with Cambodia for the release of the 31-year-old engineer, Siwarak Chutipongse.
"Samart has been closely cooperating with the Thai government to help negotiate with the Cambodian Government for the release of Mr. Siwarak and resolve this incident," it said in a statement to the stock exchange.
Its shares fell nearly 1 percent in early trade but were up 0.8 percent at 0757 GMT in a generally lower market.
RESPECT AGREEMENTS
CATS provides air traffic control services with a 32-year concession (2001-2033) under a build, cooperate and transfer arrangement with the Cambodian government, with revenue from the operations this year contributing about 5 percent to the group.
The investment is covered by an investment protection agreement between the two countries, it said.
Thai Foreign Minister Kasit Piromya said Cambodia should respect such bilateral agreements.
"The ministry is waiting for reports from the Thai embassy and we will also have to get clarification from the Cambodian government. If it violates bilateral agreements, then we will find ways to proceed," he told reporters.
"Cambodia is a market economy," he added. "Just seizing (a company) would not seem right."
Thaksin's brief presence in Cambodia fired up passions on both sides of Thailand's political divide, drawing attention to a border where Thai and Cambodian troops have clashed in the past year and causing each country to recall its ambassador. (Additional reporting by Ambika Ahuja; Editing by Jason Szep)
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