Secretary of State Hillary Clinton said the U.S. is concerned by reports of Myanmar and North Korea cooperating on nuclear technology, and called on Asian countries to present a "united front against that ever happening."

"We worry about the transfer of nuclear technology" and indications of clandestine military cooperation between two of Asia's most secretive regimes, Clinton said during a televised town hall in Bangkok before heading to the resort island of Phuket for a regional security gathering. "I'm not saying it is happening, but we want to be prepared to stand against it."

The U.S. and its Asian allies are on alert for suspected proliferation of conventional or nuclear materials by North Korea. The U.S. Navy recently followed the Kang Nam I, a North Korean freighter that was headed in the direction of Myanmar with unknown cargo. The ship turned around and returned home earlier this month.

Clinton also said during the town hall that the U.S. is prepared to take "crippling action" against Iran should it fail to curb its nuclear program, and is working with Middle East allies to boost their defenses.

Unanimous Resolution

The United Nations Security Council voted unanimously in June to adopt a U.S.-backed resolution to punish North Korea for its May 25 nuclear test. The measure seeks to curb loans and money transfers to North Korea and step up inspection of cargoes suspected of containing material that might contribute to the development of nuclear weapons or ballistic missiles.

Some proliferation experts and Myanmar dissidents say the country's military regime is trying to develop nuclear weapons, allegations that have gained currency with the release last month of 800 photographs of purported tunnels in the country built with North Korean assistance.

Clinton held back-to-back meetings in Phuket with foreign ministers from China, Russia, South Korea and Japan, the four other nations involved in stalled North Korean nuclear disarmament talks. The diplomats, meeting as part of a joint gathering of the Association of Southeast Asian Nations and the Asean Regional Forum, agreed on the need to enforce the UN sanctions, she said.

'Full Implementation'

- All four of the other ministers agreed that full implementation is important to demonstrate unanimity and resolve in the face of North Korea's provocations.

Clinton called reports that the U.S. may be willing to offer North Korea a package of incentives to encourage its leaders to return to stalled talks about dismantling its own nuclear weapons program a "misinterpretation."

"The United States stands ready to work with North Korea if and only if and when they are ready to resume" talks about complete denuclearization, she said during the forum. "We do not intend to reward North Korea just for returning to the table," she added later.

Before diplomacy with North Korea foundered last year, the impoverished country was receiving economic aid in return for dismantling a plutonium-producing facility. The U.S. also held out the prospect of improved political ties if North Korea continued to take steps to end its nuclear work. The U.S. and North Korea have no formal diplomatic relations.

Asean Condemnation

Asean foreign ministers have condemned North Korea's nuclear test and urged the country to return to the six-party talks. The group has also said Myanmar should release Nobel Prize-winning opposition leader Aung San Suu Kyi and other political prisoners, a call Clinton echoed.

Clinton said the U.S. expects fair treatment.

Clinton suggested today that incentives could be made available to Myanmar if the regime were to release Suu Kyi.

'Open Up Doors'

"There are a lot of opportunities that could be made available to the Burmese government and people if they did release her," she said. "It would open up doors for investment and exchanges that would help the people of Burma."

Any ability to influence the junta economically is likely to be limited given Myanmar's trade in natural gas with Thailand and China, a senior U.S. administration official said, speaking on condition of anonymity.

Myanmar, with Asia's seventh-largest natural gas reserves, has increased its foreign currency holdings four-fold since 2004 to $3.6 billion.

Clinton today also said Asean should consider expelling Myanmar if it doesn't make progress on human rights abuses.

"That would be an appropriate policy change to consider," she said.

By Indira A.R. Lakshmanan, Bloomberg, July 22, 2009