China, India key to prodding Myanmar

By Caren Bohan and Jalil Hamid

SYDNEY, Sept 8 (Reuters) - The United States and Indonesia believe China and India, which have significant economic ties with Myanmar, should try to exert influence on its junta, since other approaches to the military-ruled country have failed.

U.S. President George W. Bush and Indonesian President Susilo Bambang Yudhoyono agreed at a bilateral meeting in Sydney to urge India and China to lean on Myanmar, said Indonesian Foreign Minister Hasan Wirajuda.

"Bush agreed that we should talk with China and India. They are two big neighbours (of Myanmar)," Hasan told reporters after the meeting on the sideline of an Asia-Pacific summit in Sydney.

Hasan said Southeast Asian nations were at a loss as to what to do with their recalcitrant neighbour.

"Actually, all of us in ASEAN have in the past year ... recognised that constructive engagement by ASEAN has not produced any tangible result. We admit that," said Hasan.

"Likewise, also the West, they admit that the sanctions and pressure approach do not work. So we are both frustrated."

Myanmar, one of the 10 members of the Association of South East Asian Nations, has in recent days cracked down on escalating protests against huge fuel price rises and inflation in the isolated state.

"We must press the regime in Burma to stop arresting, harassing, and assaulting pro-democracy activists for organising or participating in peaceful demonstrations," Bush said in a speech to Asia-Pacific business executives on Friday.

White House Deputy National Security Adviser Jim Jeffrey said Bush had raised Myanmar with many leaders at APEC.

"We would be delighted if both of those countries (India and China) would do more. Everybody needs to do more," he said.

"They're both very important countries that have very significant economic ties with Burma. They both rely on natural resources from Burma, so they're in a good position to be influential, as are other countries," he said.

"I wouldn't want to single out specific actions. We want everybody to take the Burma situation seriously. We are working in a variety of ways and a variety of channels."

FUEL HIKE PROTESTS

More than 150 people have been arrested in Myanmar since Aug. 19, when activists began protests against an increase in fuel prices that nearly halted public transport.

There was no sign the junta was about to release them. Instead, it sounded a defiant note, accusing exile dissident groups of fomenting the protests and signalling no let-up in efforts to crush the dissent.

China, Myanmar's closest ally which is usually reticent when it comes to the affairs of others, has also sounded frustrated with its southeast Asian neighbour.

"China all along has advocated non-interference in the internal affairs of other countries. This is a very important principle," Foreign Ministry spokesman Liu Jianchao told reporters in Sydney on Saturday.

But he added China felt that constructive international efforts could help create a "good external environment that is beneficial to Myanmar's situation" and reconciliation.

"In handling the relevant problems China has all along not been supportive of the use of sanctions and pressure," he said.

"We believe that on this issue mutual respect and equal dialogue is the best way to resolve things."

The flurry of diplomacy in Sydney came after two days of protests by Buddhist monks who seized 13 government officials and torched their cars in the town of Pakkoku, 80 miles (130 km) southwest of Mandalay.

The repeated outbreaks of dissent, albeit generally small and not swelled by onlookers cowed by all-pervasive security, have been notable for their persistence despite the prospect of long jail terms. (Additional reorting by John Ruwitch in Sydney)