Villagers from Pang Huk told the Kachin News Group that throughout the day Tuesday a group of about 60 soldiers from Infantry Battalion No. 239 fought with troops from the KIA’s Battalion 38 based in Munggu (or Mongkoe).

The fighting began at about 5 AM when a column of Burmese troops accompanied by members of the pro-government Mong Hawm and Kutkai militia groups was attacked near Pang Huk. According to a local opium farmer the Burmese convoy was carrying 160 Kg of opium which had just been collected as a tax from farmers in the Pang Huk area.

Soldiers from the Infantry Battalion No. 239 responded to the attack by killings a number of pigs owned by Pang Huk villagers, according eye witnesses.  Most of the residents of the predominately ethnic Chinese village fled during the fighting leaving their livestock open for the taking.

Last November troops from Infantry Battalion No. 239 were sent to the Munggu area taking positions near KIA bases.  The Battalion also has bases at Narli and Laogai in the Kokang area.

According to local area residents the battalion regularly receives a percentage of the region's opium harvest as a form of tax.

The battalion works closely with the Mung Hawm and Kutkai militia groups who are also well known for their involvement in northern Shan State's narcotics trade.  In addition to opium production these militias are said to be heavily involved in the manufacturing and distribution of methamphetamine tablets also known as Yaba.

In an apparent effort to counter reports that elected representative in both Burma's federal parliament and the Shan state legislature from the ruling military backed Union Solidarity and Development Party (USDP) are heavily involved in Shan State's drug trade, President Thein Sein's government with the assistance of the United Nations Office of Drugs and Crime (UNODC) recently staged an “anti narcotics” tour for visiting journalists from the Reuters news agency.

UNODC's activities in Burma have been heavily criticized by observers including respected Burma expert author Bertil Lintner, as deliberately ignoring the role of the army and other state backed groups in the country's profitable narcotics trade.
Date for future KIO government talks still not set
 
Officials at the Kachin Independence Organization's (KIO) Laiza headquarters say that a new date for the recently postponed peace talks has yet to be set.  A meeting between the two sides was supposed to be held last week however this meeting was canceled after the Burmese negotiating team refused to travel to China.