THAI protesters threatened with an army crackdown abandoned their three-week rally at Premier Abhisit Vejjajiva's office yesterday, pulling the kingdom back from a potentially bloody showdown with troops.

A day after street battles in Bangkok left two dead and 123 injured, a show of force by soldiers and policemen convinced thousands of protesters who had dug in around the offices of the Prime Minister to go home.

"We have stopped the protest but we haven't stopped the fight for democracy. We will continue the movement," said protester Nattwaut Saikuar, a staunch ally of ousted premier Thaksin Shinawatra.

Five key protest leaders reported to police for questioning after the rally broke up. Police and the army said rank-and-file protesters involved in the street violence would not face charges.

The government declared two extra public holidays tomorrow and on Friday to extend the three-day Thai new-year period this week "in order to ensure public security and clean up places affected by the protests".

A state of emergency imposed by Mr Abhisit on Sunday in Bangkok and surrounding areas after protesters forced the cancellation of an Asian summit remains in force, but shopping malls closed because of the violence quickly reopened.

As hundreds of weary demonstrators headed home, mostly in the country's north-east that is the heartland of Thaksin's support, others defiantly said their campaign to dislodge the Prime Minister would continue.

The government had said it wanted a peaceful end to the crisis, after troops on Monday used tear gas and automatic weapon fire to clear demonstrators in the rest of Bangkok.

Army spokesman Sunsern Kaewkumnerd said troops had also suppressed protests in three provinces on Monday, during which demonstrators took control of a television station and a railway terminal.

- AGENCE FRANCE-PRESSE