U.S. says Suu Kyi house arrest will not deter aid

WASHINGTON (Reuters) - The United States said on Tuesday Myanmar's junta missed a chance to start a dialogue with opposition leader Aung San Suu Kyi by extending her house arrest but this would not affect post-cyclone aid efforts.

U.S. President George W. Bush said he was "deeply troubled" by the Myanmar government's decision and called on it to free all political prisoners and begin talks with Suu Kyi and other opponents on a transition to democracy.

"The United States will continue to help the people of Burma recover from the devastation of Cyclone Nargis and will continue to support the Burmese people's long-term struggle for freedom," Bush said in his written statement. The United States continues to use Myanmar's former name Burma.

Despite strong international pressure, Nobel Peace Prize laureate Suu Kyi, 62, has been under house arrest or in prison for nearly 13 of the last 18 years.

State Department spokesman Sean McCormack said: "We got word that her house arrest was renewed. It's a sad statement about the state of political freedom in Burma."

"While it isn't a surprise, the regime missed yet another opportunity to begin the process of dialogue with Aung San Suu Kyi," McCormack told reporters in response to her renewed house arrest for six more months.

The extension has disappointed Western donor nations that have pledged tens of millions of dollars in aid since Cyclone Nargis hit on May 2. The storm left up to 2.4 million people destitute in Myanmar.

McCormack said the United States viewed the case of Suu Kyi's continued house arrest and the provision of aid separately and it would have no impact on U.S. assistance.

"We have tried to separate out these two things," he said.

He said Washington would go on speaking out against human rights abuses in the country.

"But part of trying to do what is right for the Burmese people is to provide humanitarian assistance in this time of extreme need in Burma," McCormack added.

The United States has so far provided about $20.5 million in aid and the U.S. military is making about five flights a day to Yangon with supplies.

(Reporting by Sue Pleming and Matt Spetalnick; Editing by Howard Goller and David Storey)