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Suu Kyi, unable to convene all the delegates, held the conference anyway, as scheduled, between May 26 and May 28. Thousands gathered outside her gates, one of the largest crowds since her house arrest ended last year. On the last day she announced that her party would draft a new constitution — a democratic alternative to the one that was being slowly deliberated by the government. Like the party conference itself, the call for a new constitution was a provocative gesture, and for Aung San Suu Kyi an unusually confrontational one. For the first time since her release, Suu Kyi had wrested the initiative away from the government, pushing it onto the defensive. Her party was reinvigorated.

Two weeks later the government responded. It issued a decree that effectively banned Suu Kyi's gateside meetings: all speeches and any statements that were seen to undermine "the stability of the state" were prohibited. In case there was any doubt about its objective, the law also prohibited the drafting of a new constitution without the authorization of the state. The decree was issued on June 7, but it was not immediately put into effect. The government appears to have been unprepared for the vehemence of the international criticism that its actions provoked.

The criticism had been mounting since April, when, as part of an effort to harass and intimidate Suu Kyi's supporters, the authorities had arrested one of her close family friends, Leo Nichols, for operating an unauthorized fax machine. Nichols, an Anglo-Burmese businessman who had served as honorary consul for the Scandinavian countries, was sentenced to three years in prison on May 17. Five weeks later, he died while in police custody, and the government's account of his death was unsatisfactory. Protests widened. Denmark called for economic sanctions and asked the European Union to impose them; in the United States, a similar motion was debated in Congress.

The government's reaction was seen at the time to be oddly contradictory. There was even the suggestion that it might be ready to compromise. The likelihood is that the generals were largely indifferent to the international outcry; their concern was that the outcry might influence the leaders attending the July meeting of the Association of Southeast Asian Nations (ASEAN) in Jakarta. Burma was still not a member of the association — a legacy of its years of isolation — and membership was essential to establishing the country as a full trading partner in the region. Burma was seeking observer status, the first step in gaining membership. The talk among the Asian nations was now of "constructive engagement" — the soft diplomacy that only successful trade makes possible. On July 20, Burma got the recognition it sought. The regime, it seems, was set on buying its own legitimacy.

I arrived in Rangoon on Sunday, July 28, just in time to make it to the gateside meeting on University Avenue. The week before, the American secretary of state, Warren Christopher, had been in Jakarta and had censured the government of Burma, but his censure was largely rhetorical and ineffective. He stopped short of sanctions, and I wondered what Suu Kyi's response would be. In the past she had characteristically hesitated to call for any kind of economic boycott; she had now changed her position. The new wave of foreign investment, she had concluded, merely "put more money in the pockets of the privileged elite. Sanctions," she said, "would not hurt the ordinary people of Burma."

The meeting was a large one — about six thousand people. Looking around, I spotted the familiar faces of several people, some of them occupying the same spots as before, like restaurant regulars. Suu Kyi was, as before at the Sunday meetings, flanked by two senior colleagues from the National League for Democracy.

On my previous visit I had been astonished by her performance. She was full of merriment, giggling and flirtatious. Several months later she was still animated, but the lightheartedness was no longer there.

She had changed. So too had the city. The next day I went downtown, into the main business district, and found that an entire block had been transformed. The graceful but shabby old colonial arcades — untouched, like so much of Rangoon, for decades — had been torn down, and in a matter of months had been replaced with a maze of office buildings, hotels, and shops. In a nearby marketplace I discovered that the value of the currency had dropped by a third and that the price of foodstuffs had risen dramatically.

I was taken to one of Rangoon's new coffee bars by Ma Thanegi, a friend from my last visit. Ma Thanegi is an artist. She joined the democracy movement in 1988 and became an extremely active member; she even worked as an assistant to Aung San Suu Kyi and was a close friend. But then she was arrested and imprisoned for three years. By the time of her release, she had had enough of politics — she wanted to look after her own interests — and she opened an art gallery with an American expatriate.

Ma Thanegi was concerned about recent developments, especially Western trade sanctions. Her view was that a trade boycott would work only if it was a total boycott, involving all countries. And was that realistic? If only Western companies pulled out, there would be many Asian ones prepared to take their place. These new companies, Ma Thanegi said, would have less regard for Burmese workers and the local environment than those they had replaced.

Ma Thanegi had lived her whole life in Rangoon. She came of age during General Ne Win's Burmese Way to Socialism. "We lived under self-imposed isolation for decades," she said. "There was absolutely nothing, no opportunities at all, but we struggled on. Ma Ma," as she refers to Suu Kyi, "says we have to tighten our belts and think about politics. But there are no more notches to tighten on our belts."

Ma Thanegi wasn't a member of an especially privileged elite — she was middle-class. She wasn't a selfish international trader, eager to devour Burma's natural resources. She wasn't looking for a quick and easy return. Ma Thanegi was tired of coping with scarcity.

I saw Aung San Suu Kyi the next day. As I walked through the familiar blue gates, I noticed a striking new addition: a large bam-boo-and-thatch pavilion. It had been built to house the delegates of the party conference; most of those who had originally been invited did not get to see it.

When Aung San Suu Kyi appeared, I congratulated her on the success of the conference. With a self-deprecating smile, she described it as "routine party work." The achievement, she said, was in SLORC's reaction: it showed "how nervous SLORC was of the democracy movement."

Suu Kyi's face seemed strained and tired. It was now more than a year since she'd been freed from house arrest, and I found myself wondering whether her freedom was not in its way as much a burden as a release. It seemed as though the impossibly difficult task of conducting a political life under the conditions imposed on her by SLORC had proved just as hard as the enforced solitude of the preceding years. Those conditions seemed to be making her into a different kind of political figure.

She was quick to confirm the change. After she was released, she said, she made a point of being conciliatory, "but SLORC did not respond. And we have to carry on with our work. We are not going to sit and wait for SLORC to decide what we want to do… That's not the way politics works."

Suu Kyi had not, as far I knew, responded publicly to the recent ASEAN meeting, in which Burma was granted its new observer status, and I was eager to know what her thoughts might be. I asked her if she was surprised by the warmth of Burma's welcome.

She dismissed my question. It was only normal that the association should welcome a new member.

Her reply surprised me.

No, she said, really. There was nothing unusual about it.

I persisted. At a time when many nations were talking about taking actions against Burma, the Southeast Asian leaders spoke about a policy of constructive engagement, which seemed like an endorsement of the regime.