How the U.S. coaxed Myanmar in from the cold | Reuters

How the U.S. coaxed Myanmar in from the cold | Reuters

Thank you, China. With both a carrot pulling and a stick pushing, Myanmar is now trying to re-enter the international community.

Asked why Myanmar was anxious to have a better relationship with the United States, "Khin Maung Win said with assurance: China," the cable said. "The senior (Myanmar) leadership really dislikes being too heavily dependent on one dominating neighbour and hopes the U.S. can be a buffer."

Chinese money is financing new ports, highways and dams across the resource-rich country of 55 million people. China pledged $14 billion in investment for the fiscal year ending in March, making it by far the biggest investor in Myanmar.

But resentment of the Chinese presence has grown as well, a touchy subject in a country that has seen periodic anti-Chinese rioting, including clashes in 1967 in Yangon in which scores were killed and the Chinese embassy ransacked.

"The Chinese clearly are fed up with the foot-dragging by the Than Shwe regime," the U.S. embassy chief in Myanmar, Shari Villarosa, said in a confidential cable in January 2008, after hosting Chinese ambassador Guan Mu for lunch.

China has been building hydroelectric projects in Myanmar. But it has insisted on using its own workers, and will be sending much of the power from those plants in energy-starved Myanmar back to China. That has stirred local anger. In June, more than 200 Chinese workers fled home after separatist rebels attacked a hydroelectric plant in the northern border province of Kachin.

A businessman with ties to senior generals said Than Shwe had been looking for an opportunity to improve ties with Washington for some time. The junta was even getting encouragement to do so from China.