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Prime Minister Samak Sundaravej on Thursday dismissed claims he would resign. "Don't even think I am going to quit," he said. "The country needs a leader, and the world is watching us."

Some media reports (not the Bangkok Post) featured reports that Mr Samak would step down to meet a demand from the leaders of the 102-day street protest in Bangkok.

The premier confirmed that Foreign Minister Tej Bunnag resigned, dismissing it by saying, "Mr Tej is a bureaucrat. He is not tough like politicians."

Mr Samak felt sympathy for the minister and lauded his performance in the short period, insisted there were no hard feelings, and explained that Mr Tej faced pressure from many people - including his wife - who did not want to see him abused.

Surprisingly he ridiculed plans by state enterprise unions to cut utility services, saying such cuts would be impossible because workers know their responsibilities.

But Mr Samak, in a 50-minute speech carried nationwide via the Radio Thailand network, said he will not bow to the demands of anti-government protesters.

"I cannot leave because under a democratic system no group can force me to resign," he said.

"These people want the whole Samak government to quit. But how can I when the entire world is watching us? It would embarrass the nation to do such a thing."

He also rejected calls to dissolve parliament, which would lead automatically to a new election.

Mr Samak said the opposition People's Alliance for Democracy had misled the country on several subjects, including the government plan to amend the constitution and the border dispute with Cambodia on the area around Preah Vihear temple.

He questioned the motives of what he called the PAD "cult" in disobeying the law in occupying Government House and blocking streets. He savaged the PAD's plan to end democratic elections and select 70 per cent of parliament.

"The PAD is like a radical doomsday cult. It is an illegal group who have seized the Government House and declared their victory. How can that be correct? The country cannot survive without law and order. Otherwise it's a state of anarchy," he added.

"If I resign, then what else? The PAD will impose a new political regime, with only 30 percent of parliament elected. Will the public be able to accept that?"

During the speech, carried in two parts with a two-minute break at 8am for the national anthem, the prime minister was calm and sounded upbeat, as he reviewed events of recent days, and said that events would eventually become smooth.

"I am going to stay in office in order to preserve democracy and to protect the monarchy," he said at the end of the first part of his speech.

"I will not resign and will not dissolve the parliament," he stated as he ended his speech. "I will stay here [in office] to protect the country. I am the captain of this boat (Thailand) and I must take all the people on the boat to the end of our voyage, when all issues will be resolved."