WASHINGTON - President Barack Obama has eased investment curbs on Burma and named the first US ambassador to the country in more than 20 years, hoping to reward a "nascent" political reform drive.
But Obama, seeking maximum leverage on Burma's nominally civilian government and to preserve his options in case of "backsliding", maintained wider US sanctions on Burma and figures linked to the former junta.
"As an iron fist has unclenched in Burma, we have extended our hand, and are entering a new phase in our engagement on behalf of a more democratic and prosperous future for the Burmese people," Obama said in a statement.
Obama's move followed calls from business and political figures in the United States, Europe and Asia to lift sanctions, and warnings by democracy icon Aung San Suu Kyi against excessive optimism over a political opening.