The fighting in the northern and southern Shan State border area of Taung Kham has gradually reached the town of Naung Cho. The fighting in the area has been intense since the second phase of Operation 1027. Initially, the TLNA had the upper hand, but later the military council forces regained the upper hand and launched an offensive. Now, the military council forces have reached within 10 miles of the town of Naung Cho, which was occupied by the TLNA. Some residents of the town have also been forced to flee as they have come within range of the military council’s heavy weapons. It remains to be seen whether Naung Cho will fall back into the hands of the military council.