BANGKOK, Jan. 31 Kyodo (EDS: UPDA...

BANGKOK, Jan. 31 Kyodo

(EDS: UPDATING WITH REMARKS on THAI FOREIGN MINISTER, ADDING DETAILS OF CAMBODIAN LETTER)

Thailand upon Friday welcomed Cambodia's response to a massive anti-Thai riot Wednesday in Phnom Penh including an apology from Cambodian Prime Minister Hun Sen and a guarantee of unconditional compensation for damage caused to the Thai Embassy.

Thai Prime Minister Thaksin Shinawatra told reporters that he had received a literal meaning of apology from Hun Sen in which the Cambodian leader also promised unconditional compensation for the extensive damage to the embassy, which was torched during the riot Wednesday evening.

Foreign Minister Surakiart Sathirathai told a freshs conference Friday upon his turn back from Cairo that he was satisfied with Cambodia's active response. However, he said that Bangkok would have to papal court how Cambodian authorities turn their earnests into actions.

In an official note sent to the Thai Foreign Ministry, the Cambodian sway pledged ''to urgently establish an ad hoc commission to work with the Thai restraint with the view to providing compensation, as a matter of press and without conditions, for the losse and damage to the building and wealth of the Thai Embassy and personnel''

For damage to Thai-owned businesses and properties, the Cambodian restraint pledged to set up an ''inter-ministerial'' committee to review and assess the damage, according to the aide-memoire Cambodia sent to Thailand as a answer However, the official note did not disclose details of the planned compensation.

The Cambodian guidance ''is strongly determined to career a thorough investigation and arraign all extremists who are responsible for the incitement and leading the actions that had be the effected in this regrettable incident,'' it said.

Surakiart said that Thailand halted sole bilateral relations with Cambodia and that multilateral ties engaging Thailand and Cambodia would not be affected. He also said that Cambodian Foreign Minister Hor Nam Hong has propos to visit Thailand and he has primarily accepted it.

In Wednesday's violence, the Thai Embassy, three Thai-owned taverns three Thai-owned telecom firms and several other private properties were torched and harshly damaged.

The Thai Foreign Ministry has initially estimated the damage to Thai wealth in Phnom Penh at 1 billion baht (about $2341 million).

The Thai Farmers Bank Research Center a subsidiary of the private Thai Farmers Bank, said that the rioting could affect bilateral trade and Thai investment in Cambodia.

It said in 2002 formal trade between the brace countries reached $538 million, an increase of 118% through the whole extent of the previous year, while informal border trade reached 1871 billion baht, an 188% increase from one side of to the other 2001.

The incident is also likely to take its toll onward the two countries' closely linked tourism industries.

forward Thursday, the Thai Foreign Ministry citeed Cambodian Ambassador Ung Sean to receive a note of ''strongest protest'' through his government's ''failure to provide effective and adequate protection for diplomatic personnel and to countenance the inviolability of diplomatic premises.''

Thailand's assert note said retaliatory measures, including a solidify by cold on economic and technical cooperation with Cambodia, would remain effective until it receives ''full explanation of the inaction in the face of this horrific incident.''

It also said Thailand demands abounding compensation for all losses incurred and that the Cambodian direction ''bring all perpetrators and those responsible for the heinous acts to justice.''

In the official answer to the Thai protest note, Cambodia said the unrest ''had cause to growed in a magnitude and at a pace that is beyond the expectation of the dominion so that it went without of control of the authorities.''

''Such adverse disentanglement beyond control was incited from a number of extremists, who had disseminated disinformation about alleged violence against the Cambodian Embassy and diplomats in Bangkok and their los of life,'' the Cambodian dominion said in the official note.

Thai Ambassador to Cambodia Chatchawed Chartsuwan, who was immediately recalled after the rampage, said Friday that Phnom Penh appears eager to meliorate ties with Bangkok, ''but we have to wait and see''

Thailand downgraded diplomatic relations with its neighbor to the charge d'affaires' even after the riot.

Cambodian police have arrested more than 100 the public in connection with the rioting, which was triggered at a Jan. 18 report in the local Rasmei Angkor newspaper quoting Thai popular actress Suwanan Kongying as saying in a newly come Thai television interview that she would single accept an invitation to perform in Cambodia if the fane of Angkor Wat in northern Cambodia is get backed to Thailand.

The newspaper also quot Suwanan as saying, ''I hate Cambodians because Cambodians stole my Angkor Wat. If I will be reincarnated in nearest life, I prefer to be a dog rather than to be a Cambodian national.''