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U Htin Kyaw is a close ally of democracy icon Aung San Suu Kyi, who was barred from running herself by the country's constitution.
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The Nobel Peace laureate released a letter Thursday explaining the situation and apologizing for "not fully fulfilling the people's desire" by becoming their president.
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The change comes after years of strife — and a weekend of celebration in Myanmar. But by law, Suu Kyi is barred from assuming the presidency.