Obama sends Hillary Clinton to Myanmar to probe reforms

President Barack Obama said today he would send Hillary Clinton on the first trip to Myanmar by a US secretary of state for 50 years to see if Washington can "empower" a nascent reform process.

Obama said in Indonesia that he made the decision after speaking directly for the first time with democracy icon Aung San Suu Kyi and noted "flickers of progress" from the Myanmar government but said that more needed to be done.

His announcement, ahead of an East Asia summit in Bali, was the most significant move in US policy on Myanmar in many years, after several decades of using sanctions to isolate the country due to its rule of fear.

It also came as Suu Kyi's opposition National League for Democracy (NLD) was expected to announce its return to the official political arena today after years of marginalisation by military strongmen.

"Last night, I spoke to Aung San Suu Kyi directly and confirmed she supports American engagement to move this process forward," Obama said of his phone call with his fellow Nobel laureate from Air Force One yesterday.

Clinton would next month "explore whether the United States can empower a positive transition in Burma," Obama said, using the country's former name.

"That possibility will depend on the Burmese government taking more concrete action.

"If Burma fails to move down the path of reform it will continue to face sanctions and isolation."

Since elections a year ago, the new nominally civilian government has surprised observers by holding direct talks with Suu Kyi, freeing 200 dissidents and freezing work on an unpopular mega-dam.

Obama said that after "years of darkness, we have seen flickers of progress in the last several weeks."