 This battle around the town of Lashou in Shan State is significant for two reasons. First, it's the largest town in the state. Second, and more importantly, it's where the Juntas' local military headquarters is based. Experts say if the town were to fall into the hands of the rebels, it'll be a major setback for the military government's operations in the area. The current fighting broke out when insurgent groups launched an assault there a week ago.