Thai court grants bail to "red shirt" leaders

BANGKOK (Reuters) - A Thai court granted bail on Tuesday to seven anti-government "red shirt" leaders charged with terrorism, their lawyer said, a move that could ease political tensions in the divided country.

The seven had been held since bloody clashes last May between troops and demonstrators that sparked rioting and arson across Bangkok and several northern cities, which prosecutors say the leaders instigated.

The move was seen as a gesture towards the movement ahead of an election the government plans to hold in the middle of this year, provided the country is at peace and there are no threats to security.

Bangkok Criminal Court said the seven could be released immediately on condition that they did not leave the country or incite violence, lawyer Narinpong Jinapak told Reuters.

The mostly urban and rural working-class red shirts have held regular protests in Bangkok in recent months, many in defiance of strict security laws, demanding that the court release their leaders. More than 30,000 gathered outside the Supreme Court on Sunday ahead of the bail hearing.

Jatuporn Prompan, a red shirt leader and lawmaker who avoided detention due to his parliamentary immunity, welcomed their release but said the mass demonstrations would continue.

"We're satisfied with the court's decision, but our protests do not end here," he told Reuters. "There are other issues that still need to be addressed."

A total of 91 people were killed and more than 1,800 wounded in clashes that erupted in April and May when the military launched a series of offensives to break up a crippling, 10-week rally that shut down large parts of Bangkok's commercial heart.

Jacob Ramsay, a Singapore-based political risk consultant with Control Risks, said the release of the leaders could cool the political temperature and help maintain peace in the short term.

"It's a calculated gamble and seems like a concession to the red shirts ahead of an election," he said. "It's unlikely they'll be able to reorganise and restructure their movement very quickly, but they're certainly not a spent force."

(Writing and additional reporting by Martin Petty; Editing by Alan Raybould and Sugita Katyal)