Clinton and Suu Kyi’s embrace tells the generals all they need to know

At the end of a historic three-day visit, the first by a US secretary of state in more than 50 years, Mrs Clinton and Ms Suu Kyi, a former political prisoner, held hands on the verandah of the lakeside home where she spent much of the past two decades under house arrest. Mrs Clinton thanked her for her “steadfast and very clear leadership”.

Ms Suu Kyi, 66, a heroine for pro-democracy advocates everywhere, said Mrs Clinton’s visit represented “a historical moment for both our countries.”

She has welcomed Mrs Clinton’s visit and, more tentatively, reforms enacted by Burma’s new civilian government.

“If we move forward together I am confident there will be no turning back on the road to democracy,” Ms Suu Kyi said. “We are not on that road yet, but we hope to get there as soon as possible with the help and understanding of our friends.”

“We are happy with the way in which the United States is engaging with us,” she added.

“It is through engagement that we hope to promote the process of democratisation. Because of this engagement, I think our way ahead will be clearer and we will be able to trust that the process of democratisation will go forward.”

Mrs Clinton, 64, said more significant incentives will be offered to the Burmese hierarchy, but only if the government releases all political prisoners, ends brutal campaigns against ethnic minorities, respects the rule of law and improves human rights conditions.

“We are prepared to go further if reforms maintain momentum,” Mrs Clinton said. “But history teaches us to be cautious. We know that there have been serious setbacks and grave disappointments over the past decades.”

Mrs Clinton’s meetings with Ms Suu Kyi were the centrepiece of her visit to the long-isolated country, styled Myanmar by its military rulers, and forcefully underscored a US challenge to the present leaders, many of them until recently top generals.

In addition to modest incentives Mrs Clinton announced on Thursday, she said yesterday that America would spend about $1.2 million (£770,000) for projects aimed at helping the people of Burma. The money will go to microcredit and healthcare initiatives and provide assistance to land-mine victims, particularly in rural areas.

Ms Suu Kyi, whose party won 1990 elections that were ignored by the then-military junta endorsed that approach and called for the immediate release of all political prisoners and cease-fires to end the ethnic conflicts..

With international assistance and pressure on the government she said change was on the horizon for Burma.

The meeting was the second in as many days for the pair who chatted over a three-hour, private dinner in Rangoon on Thursday, according to American officials. One official said the dinner marked the beginning of what appeared to be a “very warm friendship” between the former first lady, and Ms Suu Kyi.

“We have been inspired by her fearlessness in the face of intimidation and her serenity through decades of isolation, but most of all through her devotion to her country and to the freedom and dignity of her fellow citizens,” Mrs Clinton said.

The two had discussed the “ups and downs and slings and arrows of political participation” at dinner said Mrs Clinton. She said Ms Suu Kyi would be an “excellent member” of Myanmar’s parliament but declined to discuss any electoral advice she might have given.