SummaryNo escalation in border conflict, acting Thai PM saysThai army official says military-level talks postponedOver 300,000 people displaced, 38 people killed in fightingCeasefire deal announced in Malaysia on Monday after 5-day battle
BANGKOK, July 29 (Reuters) - The Thailand-Cambodia border, where fighting has raged since last week, was calm on Tuesday following a ceasefire deal and military commanders from both sides are set to meet for talks later in the day, acting Thai Prime Minister Phumtham Wechayachai said.
Phumtham and Cambodian Prime Minister Hun Manet met in Malaysia on Monday and agreed to halt their deadliest conflict in more than a decade following five days of intense fighting that killed at least 38 people, mostly civilians, and displaced over 300,000.
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The Thai army said in a statement there had been attacks by Cambodian troops in at least five locations early on Tuesday, violating the ceasefire that had come into effect from midnight, and Thailand's military had retaliated proportionately.
Phumtham played down the clashes, and said he had spoken with Cambodia's defence minister ahead of the talks between military commanders.
"There is no escalation," Phumtham told reporters. "Right now things are calm."
Thai military officials in two areas had met with their Cambodian counterparts, but commanders along the stretch of the frontier that has seen the heaviest fighting during the conflict were yet to hold talks, Thai army spokesman Major Gen. Winthai Suvaree said in a statement.
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The parley had been scheduled for 10 a.m. local time (0300 GMT), but it was postponed and no new time had yet been set, he added.
Maly Socheata, a spokesperson for the Cambodian Defence Ministry, said at a briefing on Tuesday that there had been no new fighting along the border.
Vehicular traffic and daily activity resumed in the Kantharalak district of Thailand's Sisaket province on Tuesday, about 30 km (20 miles) from the frontlines, where Thai and Cambodian troops remain amassed.
Cars and motorbikes returned to the streets, which had been largely empty since the border clashes began on Thursday, with military vehicles among civilian traffic.
Chaiya Phumjaroen, 51, said he returned to town to reopen his shop early on Tuesday, after hearing of the ceasefire deal on the news.
"I am very happy that a ceasefire happened," he said. "If they continue to fight, we have no opportunity to make money."
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TALKS AND TRADE
The Southeast Asian neighbours have wrangled for decades over their disputed frontier and have been on a conflict footing since the killing of a Cambodian soldier in a skirmish late in May, which led to a troop buildup on both sides and a full-blown diplomatic crisis.
Monday's peace talks came after a sustained push by Malaysian Premier Anwar Ibrahim and U.S. President Donald Trump, with the latter warning Thai and Cambodian leaders that trade negotiations would not progress if fighting continued.
Thailand and Cambodia face a tariff of 36% on their goods in the U.S., their biggest export market, unless a reduction can be negotiated. After the ceasefire deal was reached, Trump said he had spoken to both leaders and had instructed his trade team to restart tariff talks.
Pichai Chunhavajira, Thailand's finance minister, said on Tuesday that trade talks with Washington are expected to be concluded before August 1, and that U.S. tariffs on the country are not expected to be as high as 36%.
Reporting by Panu Wongcha-um and Panarat Thepgumpanat in BANGKOK and Shoon Naing in KANTHARALAK; Writing by Devjyot Ghoshal; Editing by John Mair and Raju Gopalakrishnan
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