Suu Kyi trial dashes chance U.S. will ease sanctions

By Paul Eckert and Arshad Mohammed

WASHINGTON (Reuters) - Myanmar's surprise trial of opposition leader Aung San Suu Kyi has dashed already slim chances that President Barack Obama's administration would ease U.S. sanctions against the military government of the Southeast Asian country.

As Washington was reviewing policy towards the former Burma, the junta that has ruled the country since 1962 put Suu Kyi on trial on Monday, accusing the Nobel Peace laureate of breaking the terms of her house arrest because an American man swam to her lakeside home and was allowed inside.

The case, in which Suu Kyi could be jailed for up to five years if found guilty, drew international condemnation and a statement of concern from the 15-member U.N. Security Council.

Critics of Myanmar's military rulers view the charges against the charismatic Suu Kyi, whose house arrest was scheduled to end on May 27, as trumped-up to keep her in detention through elections that the junta plans in 2010.

In Washington, officials and experts said the trial would only add to voices calling for more and tougher sanctions aimed at pressing Myanmar to release Suu Kyi and other political prisoners and begin a dialogue with the democratic opposition.

"We are obviously watching this trial very closely and it will clearly be factored into the overall review," said a U.S. government official who spoke on condition he not be named.

Washington's policy review was "nearing completion" and no action was likely during Suu Kyi's trial, the official said.

Remarks by U.S. Secretary of State Hillary Clinton in February that the Obama administration was looking at new ways to sway Myanmar's entrenched rulers was interpreted by some observers as hinting at a shift away from sanctions.