STRAFFAN, April 18: The European Union and Asia wrapped up annual talks here on Sunday overshadowed, yet again, by a rift over how to handle the military dictatorship ruling Myanmar. Thailand, a key broker overseeing a regional process to advance democracy in its military-ruled neighbour, led Asian calls for the EU to stop coercing what Europe and the United States say is a pariah state.

Foreign Minister Surakiart Sathirathai said Myanmar deserved credit for making progress, predicting the imminent release from a year's house detention of democracy leader Aung San Suu Kyi. "I have reasons to believe that in the not too distant future, she will be (released)," Surakiart told AFP at the two-day Asia-Europe Meeting (ASEM).

UN envoy Razali Ismail Sunday also forecast the Nobel peace laureate's freedom in the 'next several days'. Myanmar's ruling junta allowed the National League for Democracy (NLD) headquarters to re-open on Saturday, in a move seen as heralding the end of Suu Kyi's third stint under house arrest.

But Britain - Myanmar's former colonial power - and the Netherlands have stuck to a hard line on the EU's policy of shunning the junta. Both sides of ASEM stressed they wanted to strengthen cooperation between two regions that amount for much of the world's trade, not least on North Korea, countering terrorism and immigration issues.

In a joint statement, the ASEM foreign ministers backed efforts to end a crisis over North Korea's nuclear ambitions "peacefully through dialogue, in a spirit of mutual respect and consultation".

They also called for a strong United Nations role in an orderly restoration of sovereignty to an Iraqi government and deplored the recent upsurge of violence and hostage-taking.

On the Middle East, they condemned Israel's killing of Hamas chief Abdelaziz Rantissi and - following a surprise US policy reversal last week - said a final peace settlement could only come about through negotiations.

But on Myanmar, Europe and Asia found less common ground. The two sides agreed in calling for the release of Suu Kyi, but Asian ministers rebuffed European pressure for more wholesale reform before Myanmar can join the ASEM dialogue at an October summit in Hanoi. -AFP