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   [80]Picture This

Myanmar by-elections vital for EU sanctions move - official

   By Martin Petty

   February 13, 2012 7:21 AM GMT

   A top EU official held out the prospect of a further easing of
   sanctions on Myanmar during a meeting on Monday with a senior member of
   the new civilian administration and announced increased aid to
   acknowledge reforms already begun.

   In a meeting that a handful of journalists were, unusually, allowed to
   attend, European Commissioner for Development Andris Piebalgs told
   house speaker Thura Shwe Mann it was important that parliament became
   an active player in the reform process.

   The former Burma was ruled by the military for almost 50 years until
   elections in November 2010, and its new parliament is dominated by
   military personnel and an army-backed party.

   But by-elections on April 1 should see more opposition members voted
   in, including Aung San Suu Kyi, a Nobel Peace laureate and long-time
   campaigner for democracy.

   Commissioner Piebalgs noted the European Union had already softened its
   sanctions.

   "Some restrictions were suspended because we recognised the changes in
   the country. For this reason the by-elections are a crucial process,"
   he said.
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   Shwe Mann, number three in the former junta and a pivotal figure in the
   new administration, said he would be happy to see Suu Kyi's National
   League for Democracy (NLD) in parliament. The party swept a 1990
   election but the military ignored the result. It boycotted the 2010
   election.

   "We have established a parliament, taking the necessary actions for
   democracy to thrive in Myanmar. The NLD and other parties, if they win
   in the by-elections, they can be in parliament. We will welcome them,"
   he told Piebalgs.

   The European Union and the United States have also said the freeing of
   political prisoners was crucial to the resumption of full diplomatic
   and economic links.

   Last month, the European Union eased sanctions slightly when its
   Foreign Affairs Council agreed to temporarily lift travel bans on
   President Thein Sein and top government officials in response to
   ceasefire deals with ethnic minority rebels and a fourth prisoner
   amnesty on January 13, when about 300 political detainees were freed.

   Estimates vary on how many remain behind bars, but Shwe Mann suggested
   there could be further amnesties after an official review.

   "The remaining political prisoners are those who have committed
   criminal activities in this country. Those who are on that list, if
   they have been involved in terrorist activities or harmed the public,
   they will not be included," he said.

   STEPPED-UP AID

   Later, Piebalgs became the most senior EU representative to meet
   President Thein Sein.

   He has announced a 150 million euro (125 million pounds), two-year aid
   package to help Myanmar reverse decades of stagnation because of
   international isolation and inept military rule.

   The European Union is leading the way in trying to support a country
   badly in need of new infrastructure and health and education
   facilities. To illustrate the stepped-up commitment, its new aid
   package is worth almost as much as the 173 million euros it has given
   the Southeast Asian country since 1996.

   That aid concentrated on health and education, but the new package also
   aims to find resources for people displaced by conflict and for
   agriculture, which provides a living for many of the country's
   estimated 60 million people.

   Some diplomats from EU member states believe the bloc will lift more
   sanctions as the year goes on, moving earlier than the United States,
   which is also positive about the changes but has a stricter sanctions
   regime that could take longer to undo.

   The European Union's annual sanctions review will take place in April,
   after the April 1 by-elections for 48 legislative assembly seats.

   The government, which is anxious to see the sanctions scrapped, pulled
   out all the stops to allow Suu Kyi to run. It hopes her presence will
   add legitimacy to a parliament that is becoming more vocal but still
   has only limited powers.

   Piebalgs will meet Suu Kyi at her home in the former capital, Yangon,
   on Tuesday.

   "The release of prisoners and, if it ends up being the case, free
   elections in April, will be used as motivation for the EU to prove that
   engagement 'works'," said Joakim Kreutz, a researcher at Sweden's
   Uppsala University and an expert on Myanmar sanctions.

   "I still expect the arms embargo and some personal sanctions on junta
   veterans to remain, but I would not be surprised if some measures are
   lifted."

   Western businesses constrained by the sanctions are quietly showing
   interest in Myanmar for its natural resources -- oil, gas, timber and
   gemstones -- and are also looking to invest in tourism, financial
   services, hotels, telecommunications networks and infrastructure.

   (Writing by Alan Raybould; Editing by Robert Birsel)

   Copyright 2012 Thomson Reuters UK. All rights reserved.

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