SINGAPORE - The United States and the 10-member Southeast Asian bloc agreed Sunday that military-run Myanmar's 2010 elections must be "free, fair, inclusive and transparent" to be credible.

The call was issued after President Barack Obama and Myanmar Prime Minister Thein Sein took part in the first-ever summit between the United States and the Association of Southeast Asian Nations (ASEAN).

In a joint statement, they welcomed Obama's policy of engagement with Myanmar and "underscored the importance of national reconciliation" in the politically isolated country.

"The general elections to be held in Myanmar in 2010 must be conducted in a free, fair, inclusive and transparent manner in order to be credible to the international community," the statement said.

Critics of the Myanmar regime are demanding that detained opposition leader Aung San Suu Kyi's party, the National League for Democracy, be allowed to participate in the elections.

Singapore Prime Minister Lee Hsien Loong said the fact that the United States and ASEAN had decided to hold their inaugural summit at all despite "difficulties" with Myanmar was "very significant".

"I think the meeting achieved a meeting of minds, that both sides believe that this is a relationship which is worthwhile, which needs to be broadened and deepened, and that we ought to work together in a wide range of areas to make this happen," Lee told a news conference.

ASEAN secretary-general Surin Pitsuwan said the Myanmar leader "acknowledged" Obama's call for the release of all political prisoners.

Thein Sein expressed appreciation for the new US policy of direct dialogue with the regime, Surin told reporters after attending the summit, but did not address the call for Suu Kyi's release.

"He certainly appreciates the leadership of President Obama in disarmament and in re-engagement with the world," Surin said.