India, Myanmar discuss trade, energy

Yahoo news

NEW DELHI (AFP) - The second-in-command of Myanmar's ruling junta held talks on Wednesday with Indian leaders on economic cooperation, security and energy, an Indian foreign ministry official said.

India's engagement with neighbouring Myanmar comes at a time when the international community is seeking to pressure the military junta to introduce democracy in the country.

Vice-senior General Maung Aye, who arrived in New Delhi earlier in the day, was on his second visit in eight years.

Besides talks with Indian Prime Minister Manmohan Singh, the Myanmar general also met Foreign Minister Pranab Mukherjee and Indian army chief Deepak Kapoor.

"Curbing insurgency in India's northeast, cooperation in the energy sector and increasing trade," said the official when asked about the agenda before the leaders met.

The highlight of Maung's four-day visit will be the signing of a deal later Wednesday involving 130 million dollars of Indian investment in Myanmar's Sittwe port on the edge of the Bay of Bengal, the official said.

"This will give India's landlocked northeast access to a new trade route to Southeast Asia. It will enhance connectivity and not only benefit India but Myanmar as well," a commerce ministry official told AFP.

New Delhi had been negotiating with Bangladesh for an access route to the under-developed, landlocked northeast without any success, the official said.

"The route through Myanmar will help us enormously," the commerce ministry official said.

New Delhi is also looking at increasing border trade through two new border towns besides the existing one at the Indian town of Moreh, which connects with Tamu in Myanmar, the official said.

India has consistently opposed economic sanctions as counterproductive in pressuring Myanmar to improve its domestic human record but says it is urging Myanmar to introduce democratic reforms.

New Delhi, which has twice hosted UN special envoy to Myanmar Ibrahim Gambari, said in January it was "worried" Myanmar was not moving fast enough on democratic reform.