U.S. seeks dialogue with Myanmar but sanctions stay

U.S. seeks dialogue with Myanmar but sanctions stay
Mon Sep 28, 2009 10:37pm BST

WASHINGTON (Reuters) - The United States will embark on a new policy of engagement with Myanmar's military government while keeping sanctions in place, hoping to twin economic pressure with political dialogue to spur democratic reforms.

The new U.S. policy [ID:nN2892144] , formally unveiled on Monday, marks a new stage in Washington's relations with the isolated Southeast Asian country, which is preparing next year to hold its first election in two decades.

WHY WERE SANCTIONS IMPOSED?

The United States first imposed broad sanctions on Myanmar, formally known as Burma, in 1988 after the military junta cracked down on student-led protests.

Washington has gradually tightened sanctions on the generals who rule the country, in a largely unsuccessful attempt to force them into rapprochement with Nobel Peace laureate and opposition leader Aung San Suu Kyi, who has been in detention, or "protective custody" for 14 of the last 20 years.

President Barack Obama renewed the sanctions in May. The United States has banned all imports from Myanmar, restricted financial transactions, frozen the assets of certain financial institutions and extended visa restrictions on junta officials.



The European Union, Australia, New Zealand, Canada and Japan have all imposed various sanctions on Myanmar's government.

WHAT IS THE NEW U.S. POSITION?

Existing U.S. sanctions will remain in place pending evidence of concrete political progress in Myanmar.

"Lifting sanctions now would send the wrong signal," Assistant Secretary of State Kurt Campbell told reporters. He said Washington reserved the right to impose additional sanctions if the situation in Myanmar deteriorates.

But the two sides are now planning direct meetings. The first contacts are expected this week on the sidelines of the U.N. General Assembly in New York. Campbell will take part for the U.S. side in talks designed to forge a new way ahead.

"We know the process may be long and difficult," Campbell said. "It is important that the Burmese people gain greater exposure to broader ideas."

WHY NOW?

Myanmar is one of the most economically and politically isolated countries on the planet. In Washington concerns have been growing about suspected contacts between Myanmar's rulers and North Korea, which has defied international calls to abandon its nuclear program.

Secretary of State Hillary Clinton said in July that the United States was concerned about the possible transfer of nuclear technology from North Korea to Myanmar.

Myanmar calmed some jitters when it moved to enforce a U.N. Security Council resolution against Pyongyang after it tested a nuclear device in May. Washington is hoping broader U.S. engagement with Myanmar may forestall closer ties between the two Asian outcasts.

U.S. officials hope to promote engagement before Myanmar's planned elections next year, which the junta says will end almost five decades of military rule. Analysts say the elections could simply provide a new fig leaf for army control.

Campbell said Washington would reinforce the necessity of allowing opposition parties to participate fully. "We are skeptical that the elections will be either free or fair, but we will stress to the Burmese the conditions that we consider necessary for a credible electoral process," he said.

WHAT DO THE BURMESE SAY?

Myanmar officials have said publicly that they remain committed to moving toward democracy, although not in a form imposed by the outside world.

"The transition to democracy is proceeding," Myanmar Prime Minister Thein Sein told the 192-nation U.N. General Assembly on Monday. "Our focus is not on the narrow interest of individuals, organizations or parties but on the larger interest of the entire people of the nation."

Aung San Suu Kyi's political party said she supported the U.S. engagement, but only if opposition groups are involved in any dialogue.

Suu Kyi was sentenced to another 18 months under house arrest last month for allowing an American intruder to stay at her home for two nights.

Pro-democracy campaigners in the United States said Washington should implement further sanctions if Myanmar's government does not stop "mass atrocities" against civilians.

"We also hope that U.S. engagement with the regime should not be an open-ended process, but with a reasonable timeframe and clear benchmarks," Aung Din, the executive director of the U.S. Campaign for Burma, said in a statement.

(Editing by Chris Wilson)