TOKYO - PRIME Minister Yukio Hatoyama on Saturday said Japan plans to increase aid to Myanmar gradually while hailing Washington's latest efforts to engage the military-ruled country.

'Japan plans to expand our humanitarian aid and assistance for human resources development gradually,' a Japanese foreign ministry official quoted Mr Hatoyama as saying at a meeting with his Myanmar counterpart Thein Sein.

Mr Hatoyama did not mention a specific sum, according to the official who was in the bilateral meeting.

He said the decision on greater aid stemmed from the junta's recent release of political prisoners, signs of a resumed dialogue with pro-democracy leader Aung San Suu Kyi and improved ties with the United States, said the official.

Mr Hatoyama also told Thein Sein that Japan would increase assistance further if Myanmar's planned general elections next year are held in a fair way, the official said, adding the premier did not elaborate on what this aid could be.

Mr Hatoyama met Thein Sein, Myanmar's first premier to visit Japan since 2003, at Japan's first summit with five countries along the Mekong River, which also include Cambodia, Laos, Thailand and Vietnam. -- AFP