Suu Kyi Sees a Shift in Myanmar

Dissident Aung San Suu Kyi, shown greeting supporters in Yangon, Myanmar.

YANGON, Myanmar—Dissident Aung San Suu Kyi said a series of reforms under way in Myanmar represents the biggest opening in the repressive Southeast Asian country since the 1980s, but also said she wants to see more changes before she can support easing Western economic sanctions against the military-backed government.

The ex-political prisoner and Nobel laureate offered her strongest endorsement yet of steps by Myanmar's government in recent months to ease media restrictions, reform its state-dominated economy and pursue talks with the opposition. Ms. Suu Kyi's comments, in an interview with The Wall Street Journal at her party's ramshackle headquarters in Yangon, come as policy makers around the globe look to her for guidance on how to interpret the latest changes in the resource-rich, strategically important Southeast Asian nation, also known as Burma.

Although she had previously signaled some support for the government's moves, many of her recent public remarks have been brief, leaving followers uncertain as to how far she would be willing to back the current government or endorse easing sanctions.
Ms. Suu Kyi compared her latest talks with the government—which included an August meeting with President Thein Sein—to "where South Africa was in 1990" as it negotiated an end to apartheid, and had warm words for Mr. Thein Sein, whom she called "an honest, open kind of person" with a "sincere" desire to overhaul the country.

"I know we are not there yet, but we can see the way clear ahead more than we have ever been able to," said Ms. Suu Kyi, who said her recent talks with government officials "felt real to me," unlike previous talks in earlier decades. She suggested the government is close to meeting her conditions to officially register her political organization, a significant move that would signal her trust in the unfolding system and give Myanmar's leaders a level of legitimacy they crave. She didn't rule out the possibility of running for office in a national vote expected in 2015.

However, Ms. Suu Kyi said it was still too early to give up on sanctions for at least two reasons. Authorities continue to hold an undetermined number of political prisoners, she said, and have yet to fully restore relations with Myanmar's ethnic minority groups, some of which remain locked in violent armed conflicts with the government.

"Obviously now is not the time" to lift sanctions, she said, though she said she expects the government to release more political prisoners soon. It released about 200 people this month, in a move criticized by human-rights organizations as too limited.

Ms. Suu Kyi is walking an uncertain road toward reconciliation with leaders in Myanmar, whose strategic significance has increased in recent years as China, India and other nations compete for access to its minerals and trade.

Some dissidents and Western investors want Ms. Suu Kyi to end her longstanding support for sanctions, which block most U.S. companies from doing business here. The rules have been imposed in stages since the late 1990s—largely at her behest—to punish a regime accused of widespread human-rights violations.

U.S. officials have offered cautious support for the recent changes in Myanmar, which include plans to allow peaceful protests and the organization of labor unions, as well as steps to unblock websites such as the BBC and YouTube. But like Ms. Suu Kyi, U.S. officials have stopped short of advocating lifting sanctions until more progress is seen.

Signs of a thaw continued Monday, as U.S. special envoy to Myanmar Derek Mitchell arrived to meet with government leaders for the second time in two months, the Associated Press reported.

Ms. Suu Kyi also is facing pushback from dissidents who doubt the sincerity of the government's reform push, and fear easing sanctions now could rob the opposition of leverage.Some dissidents have criticized Ms. Suu Kyi for conducting meetings with the government in private—a move she justified as necessary to ensure the process stayed on track.

Myanmar officials have said repeatedly in recent months that they are serious about reform.

A government official declined Monday to comment on Ms. Suu Kyi's latest remarks, because he hadn't seen a full transcript.

It is clear Ms. Suu Kyi will play a crucial role in determining when, and whether, sanctions are removed. After her release in November 2010 from her latest stint under house arrest, which lasted more than seven years, many experts expected Ms. Suu Kyi to take a tough line against the new government, which came to power after a late 2010 election that many Western leaders said was riddled with fraud and is dominated by allies of the military regime that controlled Myanmar since 1962. Instead, she has sounded increasingly conciliatory notes on the government, which is eager to win her backing to get sanctions removed.

"By playing her cards very well, she's put herself in a position she hasn't been in in a long time, of being the arbiter," said Sean Turnell, a Myanmar expert at Macquarie University in Sydney. He said he doubts the U.S. would lift sanctions without a clear sign from Ms. Suu Kyi.Given the uncertainties about whether Myanmar's government is serious about changing, "they're looking to her to say yes it is, or it isn't."

Ms. Suu Kyi said she was especially heartened by the easing of media restrictions, which she said is producing the most "open" environment since 1988, when student protests almost topped the military government.

"People feel more relaxed about participating in politics. They aren't frightened as they used to be," she said, speaking forcefully to be heard over barking dogs and trucks rumbling outside her office, in an old building near a strip of furniture shops and weedy lots. Now, she said, activists can take part in the political process "without endangering themselves too much."

Ms. Suu Kyi signaled she may be close to registering her political party, the National League for Democracy, after it was officially disbanded last year for boycotting the country's first election in 20 years. Myanmar officials are eager to see the NLD register: Such a step would bring Ms. Suu Kyi more formally into the political process and, officials hope, provide a tacit endorsement of the current political system, people familiar with the government's thinking say.

The party refused to register last year, objecting to rules that, among other things, prevented political prisoners from being members. "They seem to be changing the bits that we said were not really acceptable in 2010," she said of a draft party-registration law under consideration.

Many of Ms. Suu Kyi's backers oppose registration, which could be tantamount to relinquishing their claim to power. Her party won 1990 elections, Myanmar's last before the 2010 vote, a result ignored by the military regime.

Ms. Suu Kyi said, however, that party leaders long ago gave up on any claim to power from the 1990 vote. "We are in fact not asking for a transfer of power as a lot of people seem to think," she said. "That would not be practical" because many NLD candidates who won office in 1990 are now dead or in exile, she added.

Ms. Suu Kyi appeared lukewarm on the idea of endorsing Myanmar's bid to serve as chair of the Association of Southeast Asian Nations in 2014, a move that has split diplomats across Southeast Asia. Myanmar officials want to take over the rotating leadership seat at Asean, an increasingly influential regional grouping, to symbolize the country's re-entry into the international community. But some Southeast Asian leaders fear it could hurt the organization's reputation and jeopardize ties with the West.

"Assuming the chairmanship of Asean isn't going to do anything about improving the lives of people," she said.

Ms. Suu Kyi blasted the country's legal system, saying "everybody knows" the judiciary is not independent, and that there's too much "crony capitalism." She lamented that despite the relaxation of restrictions on the media, there remains a lack of transparency within the government.

For example, she said it isn't clear whether Senior Gen. Than Shwe, who was the country's paramount leader from the early 1990s until this year, is active in running the country behind the scenes despite his apparent retirement. "Because there is no freedom of information people have to depend on rumors."

But she said she thinks Mr. Thein Sein, who was a military commander before being appointed president earlier this year, wields considerable power, which could augur well for further change.

"People question how much support he has within not just the government but within the army, and that is important—I don't deny that," she said. "But I definitely get the feeling he is in charge, even if he is not in total charge."

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