The Thai government remained optimistic about resuming negotiations with the "red-shirts" because it believed a crackdown on protestors was not a long-term solution, secretary general to the prime minister Korbsak Sabhavasu said on Thursday.

Korbsak said he had not given up his attempts to hold talks with the "red-shirts" leaders to bring about a settlement.

However, talks could not be held in same form, or televised live, as before, he said.

Korbsak said the government had no intention to break up the demonstration and he believed the military felt the same way.

If there were any more clashes there would certainly be more casualties, and this would have a considerable impact, he added.

Meantime, Korbsak disclosed, the Thai cabinet will consider assistance for businesses and their employees affected by the continuing political demonstration by the "red-shirts" next week.

Korbsak said help could include an extension of debt repayment period and emergency loans to boost liquidity.

Korbsak said about 10 hotels with 4,000 employees and other businesses with about 40,000 employees were reported to have been affected.

The "red-shirts" rally has started from March 12 as they are now gathering at the Rathchaprasong Intersection.

They have demanded Prime Minister Abhisit Vejjajiva to " immediately" dissolve the lower House of parliament and hold a new general election. The "red-shirts" on Thursday ruled out new talks with the Abhisit government.