Hague: Burma needs to do more before sanctions are lifted

The foreign secretary, William Hague, has warned Burmese authorities that recent reforms are insufficient and "much more needed to be done" before EU sanctions can be lifted.

Hague, on the first visit by such a senior British official to the repressive south-east Asian nation since 1955, said on Friday that though there was a clear "momentum for change", the international community needed to maintain the pressure.

"It is very important we do not relax our efforts prematurely," he said after discussions in Rangoon with Aung San Suu Kyi, the Nobel peace prize winner and leader of Burma's pro-democracy movement.

Aung San Suu Kyi also stressed the need for further reforms, saying after the meeting that "in order to realise our dreams we have to work very hard indeed".

She added: "I do not believe in dreaming for the sake of dreaming. We have to have a goal in mind. [Getting there] boils down to … hard work."

The meeting took place at Aung San Suu Kyi's lakeside home, where she has spent much of the past 23 years under house arrest.

Hague described himself as a great admirer of his host and of her work for democracy.

"There is now a chance that what she and her colleagues have worked for for so long will actually take place if progress towards democracy continues to be made," he said.

Many remain deeply sceptical of Burma's rulers' commitment to change.

A civilian president, Thein Sein, was appointed by the military dictator, Than Shwe, last March.

Than Shwe has kept a low profile since but is believed to exercise considerable influence behind the scenes.

In November 2010, an election – described as flawed by observers – was held. A nominally civilian government is now in power, media censorship has been eased and a range of other reforms are being enacted.

About 200 political prisoners were freed in amnesties. However, between 600 and 1,700 remain in jail, some serving sentences of 30 years or more.

The exact motivation behind the decision of the ruling military clique to at least ostensibly relinquish power is still unclear.

Analysts point to the potential for a powerful group of former military men and their families to earn huge wealth from international trade and the rapid development of what is one of the poorest countries in the world.

Another factor may be a desire to dilute an increasingly heavy Chinese influence – and thus ending EU and American sanctions would be a key objective.

European leaders will meet in April to decide whether to continue the current sanctions. Last year, after Burma's transition to a civilian government, the EU lifted travel bans and asset freezes affecting many top government officials.

European sanctions are weaker than those imposed by the US and several EU nations have long believed they should be at least modified.

Hague said he had been convinced that Thein Sein was "sincere" when he met him on Wednesday, but said the release of remaining political prisoners was vital.

An amnesty earlier this week involved just a dozen prisoners being freed.

Hague said: "It is not possible to say a country is free and democratic while people are still in prison on the grounds of political beliefs. It is vital that they be released if [sanctions] are to be removed."

He also called for greater humanitarian access to areas of ethnic conflict and "visibly" free and fair polls when byelections are held in April. These will be contested by the National League of Democracy and, possibly, Aung San Suu Kyi herself. The party boycotted the election of 2010.

Analysts in Rangoon said the Burmese authorities could meet most of the conditions set out by Hague relatively quickly.

Though the political prisoners are seen as a useful bargaining chip, they could be freed rapidly and there have already been big improvements in humanitarian groups' ability to work in Burma.

Much depends on the relative power of factions within the opaque ruling cliques and an ongoing struggle between reformists and hardliners.

Hague is one of a succession of senior international officials to go to Burma. Hillary Clinton, the US secretary of state, visited last month.

Thai, Indonesian and Japanese dignitaries have done so too. On Saturday Aung San Suu Kyi will meet a Danish delegation. The French foreign minister is expected next week.

Hague said £10m of British aid would be channelled go to microfinance programmes to help the "poorest of the poor" through small loans for business set-up costs and much-needed agricultural equipment.

Another £2m will be used to help 13,000 refugees displaced within Burma by fighting between the army and Kachin ethnic minority forces, making the UK Burma's biggest bilateral aid donor.

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