EU urges China Action

In an interview with German newspaper Bild am Sonntag, Solana urged all countries with any leverage with Myanmar, formerly known as Burma, to take urgent action to stop the violence and bloodshed there.

"This is, of course, true for immediate neighbors such as China," Solana said.

China is Myanmar's largest trading partner and has long had diplomatic ties to the regime. Beijing is also eyeing the country's untapped gas fields and strategic location.

The EU's top diplomat urged the Myanmar generals "to immediately cease all violence against the peaceful demonstrations of the Burmese population."

Solana also stressed that all political prisoners have to be freed in Myanmar, while indirectly threatening with sanctions.

"We are pressing for a national reconciliation process. We are also looking at appropriate measures, in case the military continues to use violence. We are reviewing all options."

Solana's comments come as UN special envoy Ibrahim Gambari is in the new Burmese capital, Naypyidaw, for talks with the country's military rulers. It remains unclear which members of the government, Gambari will be allowed to speak to.

China issues call for peace

Caving in to international pressure, China over the weekend made its strongest call yet for the military dictatorship or junta to find a peaceful solution to the protests as several hundred people took to the streets of Rangoon, braving violence and tear gas by security forces.

After telephone talks with British Prime Minister Gordon Brown, Chinese Premier Wen Jiabao said Beijing hoped peace would return to Myanmar quickly.

"China hopes all parties concerned show restraint, resume stability through peaceful means as soon as possible, promote domestic reconciliation and achieve democracy and development."

EU warns of tighter sanctions

On Friday, Sept 28, the European Union summoned Myanmar's senior diplomat in Brussels to warn him of tougher sanctions against the military government unless it ends a bloody clampdown on protestors which has killed several people so far. The exact numbers are not known.

EU spokeswoman, Cristina Gallach said a strong message would be conveyed on Monday to Myanmar's Association of South East Asian Nations (ASEAN) partners to push them to use their influence to end the repression.

"We told the charge d'affairs we are looking at a series of options and the behaviour of the regime would very much have an impact on the type of questions," Gallach said.

Separately, Italian Prime Minister Romano Prodi's office said the EU was discussing backing up a mission to Myanmar by UN special envoy, Gambari.

On Thursday, a member of the European Parliament said EU nations should boycott the Beijing Olympics next year unless China intervenes to stop the violence in Myanmar.

EU sanctions "pathetic"

The EU has already targeted Myanmar's generals with visa bans, asset freezes and trade restrictions and EU experts are reportedly looking into possible restrictions on exports from Myanmar of timber, precious metals and stones.

EU exports to Myanmar totalled 83 million euros in 2005, imports from the country amounted to 287 million euros according to EU statistics.

However, Mark Farmaner of the Burma Campaign UK called EU sanctions "pathetic."

He told news agency Reuters that the freeze on assets was less than 7,000 euros in all 27 EU member states and many nations allowed their companies to do business in Myanmar.

French oil company Total is one of the biggest investors in Myanmar and currently pumps gas from fields off Myanmar's coast. The company's current investments are exempt from an EU investment ban on European firms in Myanmar.

Human rights activists say the firm's activities earn the military junta millions of dollars each year.

Business leaders not convinced by call for sanctions

Earlier this week, French President Nicholas Sarkozy urged Total to refrain from new investment in Burma.

The French concern said no new investment was planned but added that its pull-out would worsen the situation in the country as its place would be taken by others who treated their staff less well.

Jürgen Hambrecht, chief of German industry's Asia-Pacific Committee, said in an interview he did not believe restrictions by the EU and US would prod the country's military rulers to change course.

"We'll be doing the wrong thing if we cut back our support," Hambrecht told German business daily Handelsblatt in advance of publication on Monday.