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    Myanmar says jets used against Kachin rebels

    YANGON, Jan 3 (Reuters) - Myanmar's military has used jets

    to attacks rebel fighters in northern Kachin state, the

    government said on Thursday, its first admission of an

    intensification of a conflict that has raised doubts about its

    reformist credentials.

    Rebel sources have reported aerial bombings, shelling and

    even the use of chemical weapons since Dec. 28 after the Kachin

    Independence Army (KIA) ignored an ultimatum to stop blocking an

    army supply route in the hilly, resource-rich state where more

    than 50,000 people have been displaced.

    Official newspapers said that air support was used on Dec.

    30 to thwart KIA fighters who had occupied a hill and were

    attacking logistics units of the Tatmadaw, as Myanmar's military

    is known.

    "The Tatmadaw troops cleared Point-771 hill and its

    surrounding areas where the KIA troops were attacking the

    Tatmadaw logistic troops," the New Light of Myanmar, a

    government mouthpiece, said. "The air cover was used in the

    attack."

    U.N. Secretary-General Ban Ki-moon voiced concern on

    Wednesday over reports of helicopters and fighter jets being

    used in the state bordering China. The KIA said the attacks were

    intended to clear the path for an assault on its headquarters in

    Laisa.

    Ban called on Myanmar's government to "desist from any

    action that could endanger the lives of civilians" and

    reiterated demands for humanitarian aid groups to be granted

    access, U.N. spokesman Martin Nesirky said in a statement.

    President Thein Sein's quasi-civilian administration insists

    it wants a ceasefire and political dialogue. It says troops have

    acted only in self-defence and on Thursday denied having plans

    to seize the KIA's stronghold.

    DOMINANT MILITARY

    The escalation of fighting has raised doubts about the

    sincerity of the reformist ex-generals running the government

    and the extent of their power in a country the size of Britain

    and France plagued by decades of internal conflict.

    Some analysts and diplomats say central government is either

    not fully committed to peace with the KIA or unable to assert

    control over the military, which still dominates politics and

    the economy despite formally ceding power in March 2011.

    Colonel James Lum Dau, a Thai-based spokesman for the KIA's

    political wing, said Kachin officials on the ground had reported

    up to 300 people killed in air strikes.

    "We are in a defensive position. Right now more people are

    suffering not only bombings, but shelling and spraying of

    chemical weapons with helicopter gunships and jets," he said.

    "Only god knows what to do. We are praying."

    It is difficult for journalists to independently verify

    accounts from the two sides.

    Fighting erupted in Kachin in June 2010, ending a 17-year

    truce, and has continued even as government negotiators have

    agreed ceasefires elsewhere with ethnic Shan, Chin, Mon and

    Karen militias after decades of fighting in border areas.

    Mistrust runs deep between the military and the KIA, which

    was once backed by China, and multiple rounds of talks aimed at

    reaching a ceasefire have gone nowhere. Analysts say a history

    of bad blood and a battle for control of resources, including

    highly lucrative jade, could be stoking the unrest.

    Zaw Htay, a senior official in Thein Sein's office, told

    Reuters no air strikes had taken place but K-8 trainer jets had

    provided cover fire to protect ground troops from rebel attacks.

    The military, he said, had no intention of seizing the KIA's

    headquarters.

    "The president has said this and at the same time he has

    invited KIA leaders to come and talk with him in Naypyitaw, but

    they still haven't responded," Zaw Htay said.

    (Additional reporting by Paul Carsten in Bangkok; Writing by

    Martin Petty; Editing by Alan Raybould)

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