Japan to increase aid to Myanmar: PM

TOKYO (AFP) - – Prime Minister Yukio Hatoyama on Saturday said Japan plans to increase aid to Myanmar gradually while hailing Washington's latest efforts to engage the military-ruled country.

"Japan plans to expand our humanitarian aid and assistance for human resources development gradually," a Japanese foreign ministry official quoted Hatoyama as saying at a meeting with his Myanmar counterpart Thein Sein.

Hatoyama did not mention a specific sum, according to the official who was in the bilateral meeting.

He said the decision on greater aid stemmed from the junta's recent release of political prisoners, signs of a resumed dialogue with pro-democracy leader Aung San Suu Kyi and improved ties with the United States, said the official.

Hatoyama also told Thein Sein that Japan would increase assistance further if Myanmar's planned general elections next year are held in a fair way, the official said, adding the premier did not elaborate on what this aid could be.

Hatoyama met Thein Sein, Myanmar's first premier to visit Japan since 2003, at Japan's first summit with five countries along the Mekong River, which also include Cambodia, Laos, Thailand and Vietnam.

Japan has given about two billion yen (22 million dollars) worth of aid to Myanmar annually over the past few years.

It is mostly disaster relief and humanitarian assistance as Tokyo has shunned loans and grants to the nation criticised for human rights abuses.

Thein Sein thanked Hatoyama for Tokyo's assistance and called for more investment from and trade with Japan, according to the Japanese official.

He also said the nation was preparing law for general elections so that any party can participate, the official said.

Speaking at a press conference after the Mekong-Japan summit, Hatoyama hailed the US government's dialogue with Myanmar.

"America's greater interest in Myanmar... will benefit the Mekong region as a whole," Hatoyama said. "America is gaining greater interest in the region and we welcome it."

The administration of US President Barack Obama has recently changed its policy on Myanmar, saying it would push for engagement with the military regime because sanctions on their own had failed to bear fruit.

US Assistant Secretary of State for East Asian and Pacific Affairs Kurt Campbell and his deputy Scot Marciel held rare meetings with opposition leader Aung San Suu Kyi and premier Thein Sein on a two-day visit ending Wednesday.

Japan has maintained trade and dialogue with Myanmar, warning a hard line on Myanmar would push the junta closer to neighbouring China, its main political supporter and commercial partner.