Rebels fear the national army is planning a major assault
Following the imposition of a state of emergency in the Kokang region of Shan state yesterday.
Whole towns and villages lie empty in the rugged, remote area as tens of thousands of residents have fled their homes -- some on foot.
At least 30,000 people, mainly the ethnic Chinese Kokang, have crossed the border into China's Yunnan province, sparking alarm in Beijing.
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In one of at least two separate attacks on civilians yesterday, around 100 people came under fire as they travelled in Myanmar Red Cross trucks in a desperate dash from their homes.
"It was a miracle we weren't hit," Maung Ying told AFP in Lashio after the attack on aid vehicles, which were marked with Red Cross flags but had no military protection.
"They were shooting from the mountains on both sides of the road. I thought I was going to die, bullets were passing just over our heads," he said, adding the ordeal lasted for an hour.
Tun Tun Oo, head of the Lashio Red Cross, which is separate from the better known International Committee of the Red Cross, said it was now too dangerous to go into Laukkai.
"We just have to wait for people to come to us. If the army could give us protection under military rule, then we would go back," he told AFP.
Both the army and rebels have blamed each other for the attack.
The United Nations Resident and Humanitarian Coordinator in Myanmar, Renata Dessallien, said she was "saddened" by the aid convoy attack, adding that it was in breach of humanitarian law.