By Larry Jagan BBC correspondent in Rangoon

The foreign ministers of Burma, Thailand and India have concluded a historic summit, agreeing to establish closer economic ties and construct a major highway connecting the three countries.

They all stressed the value the scheme would have - not only for their countries, but for Asia as a whole.

Burma's foreign minister told the BBC it was the beginning of a new era of co-operation.

The two-day meeting in Rangoon had been planned for some time, but it had been delayed to fit in with the Indian minister's tight schedule and domestic problems.

High on symbolism

The rapport between the three foreign ministers was obvious from the start.

They joked together, and clearly had developed a warm personal relationship.

The countries will be linked through Mandalay

And, after two days of meetings, that was probably the most important result of this historic summit.

It was high on symbolism to cover the fact that there were no real concrete results.

The three countries have agreed in principle to develop a very ambitious road network, linking northern Thailand with India's north-east through Burma.

These roads will also give Thailand and India access to an important deep sea port on Burma's coast.

All three countries hope that this will increase bilateral aid, and give producers in the new regional grouping access to the markets in Europe to the west from Burma, and the US in the east through the highway which links Thailand, through Laos and Cambodia, to Vietnam's deep sea port of Danang.

Finance snags

The Burmese foreign minister Win Aung told the BBC he hoped the project would be completed within the next two years.

The biggest problem though remains unresolved - how to finance it.

The three countries want to set up a consortium that will then seek institutional funding from international financial institutions like the Asian Development Bank and the World Bank.

There is concern at the growing drugs trade

They hope to attract private investment as well.

None of the participants in the summit were prepared to estimate how much money is needed, but regional economists believe the total plan is a multi-billion dollar scheme.

They remain highly sceptical that the funds will in fact be found to complete the project.

Unless the three governments involved come up with most of the finance, the idea of a new pan-Asia highway is likely to remain a pipedream for some time to come.