Suu Kyi Appeal Rejected

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Myanmar's Supreme Court on February 26 rejected an appeal from pro-democracy leader and Nobel Peace Prize laureate Aung San Suu Kyi against the 18-month extension of her house arrest in August last year. The extension will end in November 2010, indicating that elections scheduled for this year will be held before this date. We expect power to remain with the military following the elections, but that small steps towards an increased degree of political freedom may be taken. A reduction in political repression could prompt an easing of US sanctions.