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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Myanmar junta asserts control over rebellious region Wed Sep 9, 2009 9:02am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Aung Hla Tun LAUKKAI, Myanmar (Reuters) - Myanmar's military regime is stepping up efforts to show its neighbors that armed ethnic separatists on its border are under control after violent clashes that sent thousands of refugees pouring into China. The normally reclusive junta invited a group of more than 50 observers to the Kokang region bordering China, an ethnic Chinese enclave the military says is now under its control after decades of rebellion to Yangon's rule. The group comprised Western and Asian diplomats and foreign journalists, including two from China, the regime's biggest ally, which has urged the junta to restore stability in a region strategically important to its energy needs. Rebel fighters from the Myanmar National Democratic Alliance Army (MNDAA), defeated by Myanmar's "Tatmadaw" army after a recent offensive, were nowhere to be seen, but officials said around 800 had agreed to join its border patrol force. Normally abuzz with border trade, gambling and racy nightlife, Kokang's once-thriving hotspots resemble ghost towns and many who fled the fierce fighting have yet to return. Shops, casinos and karaoke bars remain shuttered and thousands of armed troops and security police patrol the towns and man checkpoints along deserted roads. Local businessman said many people who returned to assess damage to their shops and homes had slipped back into China, fearing more unrest if the army launches a widely expected new offensive against the United Wa State Army (UWSA), a 20,000-strong militia run by opium warlords and drugs barons. "They are worried about the outbreak of war. Rumor has it that there will be battles between government troops and UWSA," said a local trader. "Business has dried up almost completely. It will take a long time to return to normal." Deputy Home Minister Brigadier General Phone Swe said an interim local government in Kokang, installed by Yangon just over a week ago, had agreed to play a part in next year's elections in return for regional autonomy after the polls. MORE CLASHES? Many of Myanmar's ethnic rebel groups such as the Kokang and the Wa in its remote, predominantly ethnic Chinese Shan State do not trust the regime and have long refused to disarm, join an army-run border force and take part in the polls, the first in the former British colony since 1990. In its almost five decades of unbroken rule in the former Burma, the military has failed to establish control along its northeastern border where many ethnic groups believe the junta's political gestures are veiled attempts to neutralize their power. Peace has been restored, but for how long is unclear. Ethnic rebels in the Kokang region may have succumbed to the junta's demands, but it remains to be seen if bigger and better armed groups such as the Wa would be so easily defeated. Phe Xiao Chain, chairman of the local interim administration, said Kokang's new leadership was on good terms with the powerful United Wa State Army. Continued... 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