US keeps Sudan sanctions but offers dialogue

By Andrew Quinn

WASHINGTON (Reuters) - The Obama administration on Monday said it would renew economic sanctions on Sudan, but also offered Khartoum new incentives to end violence in Darfur and the semi-autonomous south ahead of crucial polls next year.

President Barack Obama, who during last year's U.S. presidential campaign urged a tougher line on Khartoum, said the action was necessary to prevent the oil-rich African giant from falling further into chaos.

"If the Government of Sudan acts to improve the situation on the ground and to advance peace, there will be incentives; if it does not, then there will be increased pressure imposed by the United States and the international community," Obama said in a statement, repeating accusations that the violence in Darfur amounted to genocide.

Sudan said the new U.S. approach had "positive points" as a policy of engagement, not isolation.

Secretary of State Hillary Clinton said the U.S. goals would be to end war crimes and other violence in Darfur, ensure implementation of a fraying 2005 peace deal between the Khartoum government and former southern rebels, and to prevent Sudan from becoming a haven for international terror groups.

"We view the crisis in Sudan as two-fold. The situation in Darfur remains unresolved after six years and the comprehensive peace agreement between north and south will be a flashpoint for future conflict," she told a news briefing.

"We are looking to achieve results through broad engagement and frank dialogue. But words alone are not enough."

Sudan exports most of its oil to China, complicating U.S. efforts to win stronger support from Beijing for sanctions on Khartoum.