Cambodia's appointment of Thaksin angers Thailand

Thailand's ex-Prime Minister Thaksin Shinawatra has arrived in Phnom Penh following his appointment as economic adviser, to the Cambodian government.

The appointment is fueling the flames of an already fiery diplomatic relationship between the two neighboring countries.

The former Thai prime minister, wanted for corruption in his home country, arrived in Phnom Penh Tuesday, and met with Cambodian Prime Minister Hun Sen.

The Cambodian leader made Thaksin an economic adviser to his government and offered him a home in his country.

The Thai government, who seek Thaksin's extradition to serve a jail term, is outraged at the move.

Abhisit Vejjajva, Thai Prime Minister, said, "After Thaksin arrives we will work on writing a letter of extradition. We are working on it."

Thailand earlier responded to the appointment by withdrawing its ambassador from Phnom Penh, and Cambodia retaliated by doing the same.

Also on Tuesday, the Thai cabinet approved terminating a memorandum of understanding between the two sides on disputed maritime territory, which contains large oil and gas deposits.

Abhisit Vejjajva, Thai Prime Minister, said, "According to the Foreign Ministry's request about the memorandum of understanding, the cabinet agrees the Foreign Ministry will work on the termination that will have to be presented to the Parliament. There will be no negotiations."

Thaksin is in self-imposed exile to avoid a two-year prison sentence, after being toppled by the military in 2006 and later found guilty on a conflict of interest charge.

He spends much of his time in Dubai.