SIGNS WA WILL ADOPT NEW ROLE

Army Considering Drug-Free Future

Diplomats believe there may be indications that the Wa army are making
long-term plans in anticipation of the day when they can no longer
support their activities through the international drug trade.

Recent travellers to the United Wa State Army areas, opposite northern
Thailand, reported that Wa community leaders have started talks on
their policies after 2005. The Wa leadership has claimed that it will
halt heroin and methamphetamine dealing from 2005 onwards.

The narcotics trade has propelled the former pro-China group into a
major economic power in northern Burma.

The army, which signed a peace treaty with Rangoon, has officially
dropped its demand for the creation of a separate state in northern
Burma.

Officially, the Wa promised to be loyal to Rangoon, as part of the
Union of Burma, the country's official name. This promise was part of
their ceasefire agreement with the military junta.

But diplomatic sources said that recent travellers to the region say
independence hopes still run high.

Today, only the Karen still have a significant guerrilla resistance
against Rangoon. But slow progress on moving towards democracy has
fuelled new discontent among some ethnic groups.

Travellers to Wa areas have no idea what the top army leaders
think.

Wei Hsueh Kang, the drug and military mastermind, has kept a low
political profile. In addition, he was recently put on another, new
US, blacklist aimed at isolating the world's top 12 drug kingpins.

Sources with Wa connections stressed they do not believe there will be
a new declaration of independence in the immediate future-especially
as long as Rangoon continues to support the drug trade.