‘Cautious optimism’ after 1-4 March efforts of UN Special Envoy Razali Ismail to broker advance for reconciliation and democratisation in Myanmar. Aung San Suu Kyi, still under house arrest, again indicated willingness to work with Myanmar’s junta and their democracy ‘roadmap’. Prime Minister General Khin Nyunt also indicated willingness to work with political opposition.

Talks between government and Karen National Union (KNU) aimed at consolidating provisional ceasefire ended 25 February, without significant advances. Six previous attempts to find agreement on relocation of armed forces, delineation of KNU territory and fate of internally displaced Karen failed. Government indicated multi-party talks on new constitution to be resumed later this year. All parties to be included in democracy "road map," but no date given for releasing Aung San Suu Kyi or lifting restrictions on her National League for Democracy (NLD).

Informal ceasefire again agreed between Karen National Union (KNU), Myanmar’s largest rebel group, and Yangon. KNU senior figure insisted further talks needed. Karen National Progressive Party claimed 14 January that Myanmar troops had forced 2,000 ethnic Karennis from their homes. Government released 26 National League for Democracy members.

‘Informal ceasefire’ agreed between military government and ethnic minority rebels, Karen National Union (KNU), 8 December. 12 nation talks held 15 December in Bangkok to explain government road map to democracy. Myanmar’s ruling council announced intention to hold constitutional conference with all opposition parties in 2004. UN welcomed move but, along with U.S., EU and Japan, continues to view road map as non-participatory, non-transparent and lacking timeline – all demand release of Aung San Suu Kyi and substantive talks with opposition. Suu Kyi refuses liberty until National League for Democracy (NLD) colleagues arrested in connection with 30 May violence released; 14 of 35 remain incarcerated. Nine linked to NLD sentenced to death for treason 3 December.

UN human rights envoy Paulo Pinheiro reported significant deterioration since March to General Assembly following 3 - 8 November investigative trip. U.S., EU, Japan and UN continue to demand Suu Kyi release and substantive talks with opposition, dismissing government road map to democracy as non-participatory, non-transparent and lacking timeline. Pinheiro reported after meeting Suu Kyi that she will refuse liberty until 35 NLD colleagues arrested in connection with 30 May violence released. Eight of these 35 released November 9, but 27 still incarcerated. Five other NLD leaders released 25 November.

Buddhist-Muslim clashes in Kyaukse including arson attack on mosque 19 October killing nine. ASEAN welcomed “positive development” of government’s roadmap. U.S. officials said “no progress at all” and could be none until democratic opposition allowed full role in politics. UK, Japan and UN continue to demand Suu Kyi release and substantive talks with opposition. UN human rights envoy Paulo Pinheiro to commence six-day investigative trip 3 November.

Aung San Suu Kyi underwent surgery on 19 September; released from hospital on 26 September into house arrest. UN envoy Razali Ismail arrived in Rangoon on 30 September, urged government to release Suu Kyi from house arrest and commence substantive talks with opposition.

International pressure mounting on Myanmar’s military leadership over detention (since late May) of opposition leader Aung San Suu Kyi. U.S. and EU bolstered sanctions but none of neighbours - with whom it does most of its trade - has imposed sanctions; and China has strongly criticised them. August saw cabinet reshuffle among ruling generals. On August 30, Gen. Khin Nyunt, newly-appointed PM, laid out roadmap to elections next May - no mention of NLD role or Suu Kyi release. U.S. authorities believe Suu Kyi is on hunger strike.