China and Russia vetoed and South Africa also opposed U.S.-sponsored Security Council resolution calling for inclusive political dialogue; release of opposition leader Aung San Suu Kyi; and end to attacks on ethnic minorities, forced labour and restrictions on humanitarian organisations. ASEAN issued communiqué calling for progress towards democracy. India confirmed arms sales to Myanmar in exchange for assistance in combating Assam separatists (see India).

Junta minister Soe Tha warned UN Security Council (UNSC) against interference 17 December in apparent rebuke to U.S. interest in non-punitive resolution on Myanmar. Proposed U.S. resolution failed to gather sufficient momentum in December, but U.S. said will push for UNSC action in early 2007. Red Cross allowed to re-open 5 field offices the junta ordered shut in October, but ban on prison visits remains. India announced exploring joint military exercises with Myanmar after offer of military assistance in November.

UN envoy Ibrahim Gambari made second visit to country 9 November, included meeting with Aung San Suu Kyi, who said favoured dialogue between UN and ruling junta. U.S. called Myanmar “threat to international security” and said planned Security Council resolution, which is unlikely to avoid Chinese and Russian veto. Ruling junta ordered ICRC to close all field offices, in blow to already restricted humanitarian access. Newly installed Thai government announced more distant relations with Myanmar and said it would review development deals.

National Convention resumed drafting national constitution, first of 7 steps to democracy outlined by ruling junta; opposition boycotted proceedings. Dissident group “88 Generation Students” launched protest in response and gathered over 500,000 signatures on petition to free political prisoners and hold National Dialogue.

UN Security Council held first-ever discussion of situation in Myanmar. U.S. said planning resolution in early October to condemn jailing of political opponents in the country as 6 pro-democracy activists detained in 1 week. Reports of reshuffle within junta leadership indicated that General Than Shwe reportedly handed over control of armed forces to top deputy, but significance unclear. Junta detained 6 pro-democracy activists in last week of September. Karen National Union delegation due to hold peace talks with junta.

FM Nyan Win told Thai counterpart that junta looking for way to release opposition leader Aung San Suu Kyi. Thai PM Thaksin Shinawatra met junta leader Than Shwe 2 August and announced oil find in Myanmar by Thai state-owned company. Philippine FM Romulo visited Myanmar to encourage democratic reform but earlier in month Than Shwe emphasised ASEAN principle of non-interference. Myanmar diplomat said new constitution 75% complete and national convention to resume in October, but Suu Kyi to be excluded.

Army attacks on ethnic minority villages continued. Military junta postponed chairmanship of ASEAN regional bloc for second time after pressure from member countries. UN envoy Gambari reported government willing to engage with UN on “whole range of issues” following May visit. Opposition leader Aung San Suu Kyi, under extended house arrest, allowed previously denied visit by doctor. EU, Asian, U.S. and UN human rights rapporteurs paid homage to Suu Kyi at inaugural meeting of UN Human Rights Council.

Military junta continued campaign in Karen state “to clear up terrorist resistance”; over 10,000 ethnic Karens reported displaced. Unexpected visit by UN envoy Gambari and rare meeting with detained opposition leader Aung San Suu Kyi raised hopes for her release; UN suggested forthcoming aid and UNSG Annan made direct appeal, but junta ordered 1-year extension of Suu Kyi’s house arrest.

Army intensified offensive against Karen communities near new capital Pyinmana and along Thai border: thousands reportedly displaced. U.S. condemned campaign, saying military regime threat to region. Ruling junta threatened National League for Democracy with dissolution, claiming links to terrorist actions. Series of small blasts targeting Yangon infrastructure 20 April came week after government called exiled pro-democracy groups terrorists. ASEAN ministers agreed to continue policy of engagement despite lack of progress on “roadmap to democracy”, and failure of ASEAN envoy’s March visit.

Counter-insurgency by military in western Karen state reportedly forced villagers to flee homes, bringing total internally displaced to 5,000 since January. Crackdown believed connected to military junta’s sudden move of capital to Pyinmana. After long-awaited inspection of democratic progress on behalf of ASEAN, Malaysian FM Syed Hamid Albar concluded little change has occurred and expressed frustration not allowed to visit National League for Democracy leader Aung San Suu Kyi. French contingent of Médecins Sans Frontières closed operations in Mon and Karen states due to restrictions imposed by authorities.