BANGKOK, Feb 16 (Reuters) - Predominantly Buddhist Thailand, hit by three-year separatist insurgency in which more than 2,000 people have been killed, plans to hold talks with the Muslim rebels, Prime Minister Surayud Chulanont said on Friday. "It is not a negotiation, but more of a dialogue to build understanding with them, which Malaysia has supported as a good idea," Surayud told reporters when asked if Bangkok would formally ask Kuala Lumpur to be a mediator. But Surayud, who agreed with Malaysian counterpart Abdullah Ahamd Badawi this week to speed up attempts to develop their common border area to help end the violence, declined to say where or when the talks would be held or who would be involved. "We need to proceed step by step since we don't want to talk about rice growing with mango farmers," said Surayud, who acknowledged on Tuesday his peace campaign in the Muslim south was making no headway. The Thai Foreign Ministry denied a report by Malaysian state news agency Bernama quoting Abdullah as saying Thailand would make a formal request to ask Malaysia to mediate talks with the separatist groups. "We believe His Excellency the Prime Minister of Malaysia has been misquoted," Thai Foreign Minister Nitya Pibulsonggram said in a statement. "There is no plan for such mediation that would necessiate any request," he said. After replacing Thaksin Shinawatra, who was ousted by a coup last year, the military-appointed government embarked on a peace offensive in the rebellious Muslim far south near the Malaysian border, but insurgent attacks have not diminished. Surayud went to apologise for the hard line taken by Thaksin. He also promised a place for Islamic Sharia law and development aid for one of the poorer areas of Thailand, which annexed the former sultanate a century ago. On Friday, eight securitymen were wounded in a double attack in Yala, one of the three provinces hit by daily gun and bomb attacks, police said. One roadside bomb wounded two rangers and another went off when a team of police came to inspect the scene, wounding six, they said.
