The breakdown dashed hopes for an imminent peaceful resolution to the deadlock, which has been punctuated by increasing hostility and bloody street violence.
The protesters, known as the red shirts, had previously demanded parliament be immediately dissolved, but softened that stance on Friday, offering the government 30 days to disband the legislature in a move aimed at preventing further violence. But Vejjajiva was quoted as rejecting the proposal.
Nattawut Saikua, a top red shirt leader, said that with their compromise rejected, there was no point in continuing talks.
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