Disputes - international:
despite continuing border committee talks, significant differences
remain with Thailand over boundary alignment and the handling of
ethnic rebels, refugees, and illegal cross-border activities
Illicit drugs:
world's second largest producer of illicit opium (potential
production in 2002 - 630 metric tons, down 27% due to drought and,
to a lesser extent, eradication; cultivation in 2002 - 77,000
hectares, a 27% decline from 2001); surrender of drug warlord KHUN
SA's Mong Tai Army in January 1996 was hailed by Rangoon as a major
counternarcotics success, but lack of government will and ability to
take on major narcotrafficking groups and lack of serious commitment
against money laundering continues to hinder the overall antidrug
effort; major source of methamphetamine and heroin for regional
consumption