The United Nations would spearhead economic and humanitarian aid to Burma if it freed pro-democracy leader Aung San Suu Kyi and consulted the opposition in constitution talks , UN envoy Razali Ismail said today.

"The UN has been working hard with several countries to try to see what can be done by way of incentives by the international community to help Burma in humanitarian and economic assistance," Razali told reporters.

But the former Malaysian diplomat said Rangoon's failure to release Nobel Peace laureate Suu Kyi and the absence of the National League for Democracy (NLD) in the constitution talks that opened Monday dashed hopes for foreign aid.

"If that had happened, I would be talking (now) about how to deal with incentives. Unfortunately, this has not taken place," he said.

Razali, however, said the UN had not given up hope, adding it was "not too late to turn around" the situation in Burma.

"If we can turn it around, then the UN is ready to spearhead efforts to help the country in all aspects," he said.

Democratic reforms

Burma's economy is reeling under decades of neglect, with international sanctions, upped last year following the detention of Suu Kyi, also biting hard.

Razali was the catalyst for landmark contacts between Burma's military junta and Suu Kyi which began in October 2000 but collapsed last year.

Her NLD won elections in 1990 but was never allowed to rule.

Razali, who last visited Rangoon in March, his 12th trip, aimed at securing the freedom of Suu Kyi and to spur democratic reforms, said he would "soldier on" as long as he could be of any use to bring democratic reforms in Burma.

"I believe there can be progress. It does not mean the end of the road," he said..

UN Secretary General Kofi Annan said Monday that the Burma junta jeopardised its credibility by opening constitutional talks without the presence of the opposition.

The NLD stayed away because of the junta's refusal to free Suu Kyi from house arrest or to relax repressive rules surrounding the forum.

Help from others

Razali also said he would go to Burma immediately if the junta was willing to discuss Suu Kyi's freedom and the NLD's participation in the convention.

But he said that China, India and members of the Association of Southeast Asian Nations (Asean) could assist the UN in this attempt.

"I am going to China to appeal to them to do more than what they had done. I have a feeling the new government of India will be able to help me more. We have to find ways to move forward," he said.

Razali said the junta could not simply say that if Suu Kyi was freed extremists would undertake actions that would endanger national security.

"The nature of the country cannot be buttressed soley by authoritative actions in dealing with security but it has to be done by enhancing cooperation between the various parties," he said.

The constitutional forum under way at a purpose-built venue north of Rangoon has drawn together more than 1,000 delegates, mostly handpicked by the government and from all walks of life including farmers, workers and academics.

The talks are the first step in the regime's "roadmap to democracy", which it says will end in free elections but have been dismissed as a sham by Washington and human rights groups. - AFP