Democracy can bring Burma in from the cold says Hillary Clinton

Hillary Clinton today hailed the steps towards democracy taken by Burma but warned the reclusive country that it must do more before it was welcomed in from the cold.

The US Secretary of State met president Thein Sein and offered warmer relations with the West if Burma continued on the path to democracy. Mrs Clinton also promised further improved diplomatic ties if political prisoners were freed and ethnic violence tackled.

But the most stringent demand it is believed she placed on the president was to distance his country from North Korea.

In a series of modest first steps, Mrs Clinton announced that Washington would allow Burma's participation in the US-backed grouping of Mekong River countries; no longer block enhanced co-operation between the country and the International Monetary Fund, and support intensified UN health, finance and anti-drugs initiatives. During the talks in an ornate room at Naypidaw's grandiose presidential palace, which has 60ft ceilings replete with gold gilt, giant teak doors and white marble floors, Thein Sein appeared eager to embrace the US.

He told Mrs Clinton her visit was a "historic milestone" that would "enhance relations and co-operation". After the meeting Ms Clinton said: "While measures already taken may be unprecedented and certainly welcome, they are just a beginning.

"We're not at the point yet where we can consider lifting sanctions that we have in place because of our ongoing concerns about policies that have to be reversed. But any steps that the government takes will be carefully considered and will be matched.

"We believe that any political prisoner anywhere should be released. One political prisoner is one too many in our view."

Tonight Ms Clinton was travelling to the commercial capital of Yangon to meet opposition leader and Nobel peace laureate Aung San Suu Kyi, who is returning to politics after decades of detention, harassment and violent repression.

Successive military regimes cancelled 1990 elections that Suu Kyi's National League for Democracy party won. She has said she plans to run in forthcoming elections.

Today Ms Suu Kyi attended an event to mark world Aids day at the party's Yangon headquarters.