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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Abu Dhabi gives Dubai $10 billion in surprise bailout 2:02am EST Exclusive: IRS hires "hundreds" for new wealth unit 11 Dec 2009 Asian stocks rebound on Dubai bailout, yen falls 12:53am EST UPDATE 1-Abu Dhabi gives Dubai $10 bln in surprise bailout 12:23am EST Citi near deal to pay back bailout money: reports 13 Dec 2009 Abu Dhabi gives Dubai $10 billion in surprise bailout 2:02am EST Exclusive: IRS hires "hundreds" for new wealth unit 11 Dec 2009 TEXT-Dubai govt statement on restructuring, aid 13 Dec 2009 Dubai government statement on restructuring, aid 12:29am EST In Bhutan, a stock trade a day keeps stress away 09 Dec 2009 Myanmar rebels grow more opium to buy arms: report BANGKOK Mon Dec 14, 2009 1:09am EST Factbox Key facts and figures about Afghanistan Wed, Dec 2 2009 Related News Pushing alternative crops in Afghan opium fight Thu, Nov 26 2009 Iran has 130,000 new drug addicts each year: report Sun, Nov 15 2009 U.N. declares Afghan election "credible, legitimate" Mon, Nov 9 2009 Afghan opium feeding Europe, Russia, Iran addicts Wed, Oct 21 2009 BANGKOK (Reuters) - Ethnic groups in northeastern Myanmar have stepped up opium cultivation to buy weapons to defend themselves against possible attacks by the country's military, a United Nations report said on Monday. World Opium production increased for the third successive year and rose by 11 percent this year, with Shan State providing 95 percent of the poppy in Myanmar, the world's second-biggest opium producer after Afghanistan, according to the United Nations Office on Drugs and Crime (UNODC). "Increased instability in northeastern Myanmar is affecting the opium market. (Some ethnic groups) ... are selling drugs to buy weapons, and moving stocks to avoid detection," said UNODC Executive Director Antonio Maria Costa. Myanmar's army has maintained a sizable presence over the past few months in Shan State, where rebel militias are braced for an offensive that analysts said could turn into a protracted conflict, creating a refugee crisis for neighboring China. The junta wants ethnic groups to take part in a general election next year and has told local militias to disarm and join a government-run border patrol force or be wiped out, according to activists in Shan State. The military overwhelmed and disarmed the Kokang group, the weakest of the ethnic armies, in August after several days of fighting. That triggered an exodus of more than 37,000 refugees across the border and strained ties with China, its only real diplomatic ally. The United Wa State Army, a 20,000-strong ethnic Chinese militia labeled a narcotics cartel by the United States, has refused to disarm and is preparing for an imminent attack, media reports and activists say. UNODC said the amount of land dedicated to growing opium -- a thick paste from poppy used to make heroin -- had increased by 50 percent since 2006 to 31,700 hectares in Myanmar. Despite the rise in cultivation, the report said the potential value of opium production in Myanmar had fallen by 15 percent to $104 million in 2009 from $123 million. In neighboring Laos, opium cultivation had increased by 19 percent but the total remained low at 1,900 hectares. However, with opium fetching $1,326 per kg, the price was still attractive for farmers at a time when the value of other crops was falling, the report said. (Reporting by Martin Petty; Editing by Alan Raybould) World More from Reuters Abu Dhabi gives Dubai $10 billion in surprise bailout DUBAI (Reuters) - Abu Dhabi bailed out neighboring Dubai on Monday with $10 billion in surprise aid for debt-laden Dubai World, driving stock markets higher, but Dubai said creditors still needed to approve a standstill on outstanding debt. ArcelorMittal could cut 10,000 jobs: report Obama to meet with bankers, decries "fat cats" European stock futures signal strong gains Nikkei trims losses on Dubai "Naked access" now 38 percent of U.S. trading: report » More Top News Fast forward for investors With 2009 all but over for investors, the coming week will be dominated by the issues that will shape markets in 2010. 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Full Article Blog: Small business confidence spirals Video: Who won the social media war? small business © Copyright 2009 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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