The AA army captured the southernmost town of Gwa in Rakhine State yesterday. The rebels, who were desperately trying to prevent Gwa from falling, abandoned about ten armored vehicles and fled to the Ayeyarwady Division. With the capture of Gwa, the AA announced that it was ready to discuss with the military council when only three cities in Rakhine State remain to be captured: Myanmaung, the capital city-Sittway, and Kyaukphyu, where Chinese projects are located. The AA is signaling that it will seize the remaining cities through political means after the war. The AA has begun offering China to take control of Kyaukphyu, where China has many interests, including a deep-sea port, a special economic zone, and a Chinese oil pipeline, without going to war. It remains to be seen how China and the military council will respond.