The United States has said it would upgrade diplomatic ties with Burma after President Barack Obama called the release of hundreds of political prisoners a "substantial step forward" in the southeast Asian country's democratic reforms.
US Secretary of State Hillary Clinton said Washington was ready to begin the process of exchanging full ambassadors after an absence of two decades, and would consider additional measures if the new civilian-led government's reforms continue.
"President Thein Sein's decision to release hundreds of prisoners of conscience is a substantial step forward for democratic reform," Mr Obama said in a statement.
"Much more remains to be done to meet the aspirations of the Burmese people, but the United States is committed to continuing our engagement," he added.
The US move was one of the most significant steps yet in a quickening, but still tentative, re-engagement with the country that included a visit by Mrs Clinton there last month.