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Updated: 21:26, Thursday April 26, 2012
The United States says it will ease its investment ban in Burma carefully, noting that recent democratic reforms there are reversible and deplorable rights violations persist.
The top US diplomat for East Asia, Kurt Campbell, says the US remains troubled by Burma's military trade with North Korea.
His cautious comments come as human rights groups voice increasing concern that the US, European Union and other nations are moving too fast to relax economic sanctions to reward Burma's shift from five decades of authoritarian rule.
The EU this week suspended its economic sanctions and Japan said it would forgive more than three billion dollars in Burma's debt, following recent special elections that saw democracy leader Aung San Suu Kyi's party sweep most of the contested seats.
Mr Campbell said despite the releases of more than 500 political prisoners since last October, at least several hundred are still behind bars.