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The Myanmar National Human Rights Commission, in a statement printed in the New Light of Myanmar newspaper, said more than 14,000 displaced people, including more than 3,000 students, are being cared for in government-run areas.
"From individual interviews, it was evident that almost all wanted to return to their own villages," the statement said, following a trip to Kachin by a team from the commission.
"The children appear to be suffering from psychological trauma and the adults seem to experience a sense of insecurity and diminished confidence."
It said those in the 59 camps under state government care had their "basic necessities" provided for by government and civil society groups as well as UN agencies.
The statement did not mention numbers displaced in rebel-controlled areas, where at least 30,000 are estimated to be living in camps according to campaign group Refugees International last week.
The group warned of "potential for a serious humanitarian crisis" in Kachin, expressing serious concern for the displaced people in these rebel areas.
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