Just as many had feared, the stormy relationship between Thailand and Cambodia was pushed to the edge yesterday when Bangkok responded to fugitive ex-PM Thaksin Shinawatra's appointment as the neighbouring country's economic adviser by recalling its ambassador from Phnom Penh.

Cambodia's retaliation - the planned recall of its ambassador here, You Aye, who Deputy Cambodian Prime Minister Sok An said would not return until Bangkok sends its own envoy back - ensured bilateral ties were at their worst level in years.

If Thaksin's appointment was an unmistakable diplomatic provocation, recalling the Thai envoy was the strongest possible response yet - equivalent to a downgrade of relations between the countries.

Former foreign minister Tej Bunnag warned that the ambassadorial recalls meant a major channel of communications had been removed.

The Foreign Ministry recalled Prasas Prasasvinitchai, the ambassador to Phnom Penh, to Bangkok yesterday after Cambodian Prime Minister Hun Sen announced on Wednesday that Thaksin had been royally appointed as economic adviser and would not be extradited to Thailand.