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UNITED NATIONS, May 7 (OneWorld) - A major U.S.-based humanitarian aid group is urging the Bush administration to revise its aid policy toward Myanmar (formerly known as Burma) and provide immediate assistance to the cyclone victims in that country.

"Now is the time to support the Burmese people" said Joel Charny of the aid group Refugees International in a statement urging the U.S. government to change its funding policy on Myanmar.

The United States has put severe restrictions on humanitarian aid to Myanmar, and provides less aid to the country than any other major donor nation, the group said Monday. Despite the U.S. constraints, however, many international agencies and aid groups are currently operating inside that country.

Last weekend, Myanmar was hit by a devastating cyclone which killed tens of thousands of people. Latest reports suggest that over 1 million people have become homeless and tens of thousands are missing.

According to the UN Office for the Coordination of Humanitarian Affairs (OCHA), the population of the declared disaster area is estimated at 24 million, with about 6 million in the country's main city, Yangon (formerly Rangoon).

On Monday, UN Secretary-General Ban Ki-moon said the lack of communication was making it difficult to know the extent of casualties and damage, but added the UN "is prepared to mobilize international aid in support of the government."

Humanitarian organizations fear the death toll in Burma will escalate dramatically unless aid is delivered to victims in the next few days. Most people already live in poverty, and have no resources to cope with a disaster on this scale.

Charny, who was in Myanmar just a month ago, recently authored a report, which reflected his group's growing concerns about the impact of the current U.S. constraints on aid to that impoverished and repressive southeast Asian country.

"International donors are recognizing the tremendous need, and the obligation to end the humanitarian restrictions that constitute an additional punishment for the Burmese people," he wrote, describing the U.S. policy as a "glaring exception to this trend."

The cyclone has hit Myanmar at a time when preparation for a nationwide referendum are in full swing. The government is due to hold the referendum on constitutional changes on May 10. Aid groups say they are wary of its possible adverse impact on humanitarian efforts inside the country.

"The referendum will offer a new opportunity to express international disapproval," said Charny, "but the humanitarian response to the needs of the Burmese people should be divorced from the political situation."

Some U.S.-based groups have already taken several initiatives to provide emergency aid to Myanmar's cyclone victims. On Tuesday, the International Rescue Committee (IRC) said it is sending an emergency team to Yangon to lay ground work for urgent assistance.

"The communities hit by the cyclone and the government face enormous challenges in responding to a disaster of this scale," said Greg Beck, IRC's regional director. "With our years of emergency experience, we are hopeful that we can help bring critical assistance."

A top United Nations humanitarian official said he was prepared to provide a grant from the Central Emergency Response Fund (CERF) to help thousands of people who have been affected by the deadly cyclone. CERF was set up after the 2004 Asian Tsunami.

In 2004, the government in Yangon, which is often suspicious of foreign aid agencies, refused to accept international help for its people affected by the Asian tsunami. However, this time the government seems willing to allow humanitarian groups to move in.

"The government of Myanmar has indicated that they are open to international assistance," UN humanitarian chief John Holmes said in a statement Tuesday. "We appreciate the government's announcement that it is making available approximately $5 million from its own resources."

Meanwhile, in calling for an end to U.S. restrictions on aid, Refugees International's Charny suggested that Washington should adopt a more nuanced response, which sanctions the Burmese leadership for their undemocratic behavior, while supporting the people through increased humanitarian aid.

"UN and international aid groups have demonstrated their ability to work independently of the [Myanmar] government," he said. "It is entirely possible to provide assistance to the people without benefiting this repressive government.

"The U.S. should increase humanitarian aid, regardless of the outcome of the constitutional referendum."

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