Battle zone turns into a picnic amid rumours of deal to end Thai protests Thousands of jubilant demonstrators waving the red, white and blue Thai flag swarmed across the expansive lawn of Government House, snapping photos of themselves with mobile phones and screaming "Victory belongs to the people!" By lunchtime, the streets were lined with police not in riot gear, but with little Thai flags painted on their cheeks chatting with the protesters. Bottles of water were exchanged and food stands set up. A battle zone literally turned into a picnic. Thai riot police stand down outside the city police headquarters in Bangkok (AP) It's all OK," smiled one officer. Bee Wongchote, a marketing manager, expressed the widespread sense of relief. Yesterday was very bad with all the violence," said the 32-year-old. About 20 soldiers and police did stand guard at the offices of the prime minister, whose whereabouts were unknown. Protesters did not try to enter and after an hour of speeches and cheering, all filed back out of the compound, as their leaders had instructed. The abrupt ceasefire and the organized exit fueled speculation that a deal - at least for now - had been struck behind closed doors between the two sides, brokered by the army and the royal palace. Were Ms Yingluck to step down or call fresh elections, it would mollify the protesters in the short-term. She is widely loathed as a proxy for her elder brother, the former prime minister Thaksin Shinawatra, who was exiled after a military coup in 2006. Her attempt to pass an amnesty law that could have let him back in the country, led to the present turmoil. But her party would almost certainly win any subsequent election, given its overwhelming support among the rural and urban poor. Thailand remains bitterly-divided between the supporters of Mr Thaksin and his opponents among the metropolitan middle classes and traditional Thai elite. They regard Mr Thaksin as deeply corrupt and a threat to the authority of the revered monarch, King Bhumibol Adulyadej. An anti-government protester hugs a Thai policeman as others watch them outside city police headquarters in Bangkok (AP) Political instability has plagued Thailand since Thaksin was ousted. In 2008, anti-Thaksin protesters occupied Bangkok's two airports for a week after taking over the prime minister's office for three months, and in 2010 pro-Thaksin crowds occupied downtown Bangkok for weeks in a stand-off that ended with parts of the city in flames and more than 90 people dead. "I believe that no one wants to see a repeat of history, where we saw the people suffer and lose their lives," Yingluck said earlier. Anti-government protesters shout victory slogans after removing the barricades outside city police headquarters in Bangkok (AP) The backroom deal may have been designed to keep the streets quiet for the monarch's birthday tomorrow and to avoid an escalation of violence to the levels seen in 2010. If Ms Yingluck is still in power once the king's birthday has been celebrated, the streets could soon fill again. "The government is still here and Yingluck is still a fake prime minister," said one protestor. Thai anti-government protesters wave national flags after they entered the Government House compound in Bangkok (AFP/Getty Images) "She has to go," chipped in Paveera Saemun, a 22-year-old student. "I don't think it is complete victory, but this is very good," said Kraisit Kitwanitkhachorn, a 31-year-old PhD student at Bangkok's Mahidol University. Yingluck will have to go soon for sure. We wanted to come into Government House because it's a symbolic victory. But this is a victory that is not complete," added Direk Worachaisawad, a 45-year-old high school computer science teacher who was on the compound's front lawn. It's not over yet. We have to keep fighting," he said. We won't stop until all the dirt has been swept out of Thailand.