Suu Kyi meets military

Aung San Suu Kyi is under de facto house arrest

Burma's pro-democracy leader Aung San Suu Kyi has met senior representatives of the military government in the first such reported contact in five years.

This is extremely significant

UN envoy Razali Ismail

The UN envoy to Burma Razali Ismail told the BBC that regular contact was planned and the process of national reconciliation had begun.

He was speaking after a visit to Rangoon during which he met both sides - even though Aung San Suu Kyi is under virtual house arrest.

It is thought General Khin Nyunt was involved in talks

Aung San Suu Kyi's National League for Democracy (NLD) won a landslide election victory in 1990, but the military refused to hand over power.

"I think this [meeting] is extremely significant," Mr Razali said. "It's what the UN and international community were hoping would happen and we're very glad this has taken place."

Optimism

Mr Razali declined to name the military leaders who met Aung San Suu Kyi, but said it was at a sufficiently high level that both sides were satisfied.

This is not a publicity stunt - these talks are being conducted with good faith on both sides

UN envoy Razali Ismail

Sources in Rangoon believe the military intelligence chief Lieutenant General Khin Nyunt was involved.

Although the UN has confirmed the meeting no one is divulging any details.

According to diplomats in Rangoon there is cautious optimism that the country's political deadlock is in the process of being broken.

They believe recent international pressure may have unsettled the country's military leaders and encouraged them to be more conciliatory towards Aung San Suu Kyi

In November the International Labour Organisation demanded member countries consider adopting economic sanctions against Rangoon.

The Association of South East Asian Nations, to which Burma was admitted in 1997, has also played a constructive role.

Malaysian Prime Minister Mahathir Mohamad, who was in Rangoon last week, is understood to have told Burma's regime very forcefully that they needed to be more conciliatory.