After holding talks with Myanmar government here in capital, Naypyidaw, on Thursday, the Clinton said the country’s leaders had promised to carry out more reforms.
She cautioned, however, that action so far has been “insufficient” to warrant a breakthrough in ties.
Clinton said the US would take small steps including discussing possible searches with Myanmar for remains of US soldiers killed during the second world war.
Clinton also invited Myanmar to join as an observer the Lower Mekong Initiative, a US programme that offers co-operation on health and the environment in Southeast Asian nations.
“These are incremental steps and we are prepared to go further if reforms maintain momentum. In that spirit, we are discussing what it will take to upgrade diplomatic relations and exchange ambassadors,” Clinton told reporters.
“Over time, this could become an important channel to air concerns, monitor and support progress and build trust on both sides,” she said.