US eases investment curbs on Myanmar

US President Barack Obama Thursday eased investment curbs on Myanmar but maintained sanctions against former junta members, seeking maximum leverage to encourage a “nascent” reform drive.

Mr Obama’s move followed calls from business and political figures in the US, Europe and Asia to lift sanctions, and warnings by democracy icon Aung San Suu Kyi against excessive optimism over a poli-ical opening.

“We will license certain types of investment in financial services and for businesses to do business in Burma,” a US official said, adding, “We will continue to sanction individuals associated with the former regime.” It is a recognition of progress, it is a recognition that opening up greater economic engagement between our two countries is important to support reformers.”

The decision could usher in the first major trade and investment between the US and Myanmar for years, and help pry open the country’s backward economy, that has been left behind by speeding Southeast Asian development.

The official added that the US would maintain wider sanctions on Myanmar as leverage to promote change and to give it the legal authority to move quickly should it detect “backsliding” by the government.

The US government will advise companies on where and whether to invest in Myanmar and would maintain restrictions on investment with the military, which has deep commercial interests in the country’s economy.

Earlier, Mr Obama said Myanmar had made progress in a number of areas including by releasing political prisoners, pursuing cease-fire talks with ethnic groups and by opening dialogue with Aung San Suu Kyi’s National League for Democracy.

“Burma has made important strides, but the political opening is nascent, and we continue to have concerns, including remaining political prisoners, ongoing conflict, and serious human rights abuses in ethnic areas,” he said.

“I have determined that it is necessary to continue the national emergency with respect to Burma and to maintain in force the sanctions that respond to this threat,” Mr Obama said in a message to Congress using Myanmar’s former name.