UPDATE 1-Clinton hails gay rights activists in wary Uganda

* Clinton calls Uganda gay rights advocates "an inspiration"

* Drones may one day be used to hunt Joseph Kony

* Clinton suggests longtime Uganda leader look to his legacy

(Recasts, adds detail)

KAMPALA, Aug 3 (Reuters) - U.S. Secretary of State Hillary

Clinton on Friday praised activists who opposed a tough draft

law in Uganda targeting gays and lesbians, calling them an

inspiration for others struggling to secure equal rights around

the world.

Clinton presented a coalition of Ugandan rights groups with

the State Department's 2011 Human Rights Defender Award, a

signal to African and Islamic nations that Washington will not

backtrack in its fight against the legal and political

persecution of homosexuals.

"It is critical for all Ugandans - the government and

citizens alike - to speak out against discrimination,

harassment, and intimidation of anyone. That's true no matter

where they come from, what they believe, or whom they love,"

Clinton said.

Clinton said she raised the issue in talks on Friday with

Ugandan President Yoweri Museveni, whose government has been

accused of allowing political and religious leaders to drum up

anti-gay feeling in the deeply conservative East African nation.

"You are a model for others and an inspiration for the

world," Clinton said to representatives of the group, formed in

2009 to combat draft legislation which proposed the death

penalty for anyone convicted of "aggravated homosexuality".

The bill, which spurred a global outcry, stalled in

parliament but has been reintroduced in a watered down form by a

member of Museveni's party.

The new version dropped the death sentence, but would still

outlaw the "promotion" of gay rights and punish anyone who

"funds, sponsors or abets homosexuality".

Clinton's strong expression of support for Uganda's

beleaguered gay community came as she continued a seven-nation

trip across Africa.

She began Friday with a visit to South Sudan, Africa's

newest nation, where she urged the new government in Juba to

make a deal with their old rulers in Khartoum to resolve a

dispute over oil revenues which has driven both countries to

economic crisis..

On Saturday, she will continue on to Kenya, before heading

south to Malawi and South Africa.

COULD DRONES HUNT KONY?

In Uganda, Clinton visited a military base where Ugandan and

U.S. soldiers showed her the U.S.-made "drone" aircraft now

patrolling the skies over Somalia, where an African Union force

is seeking to crush al Shabaab Islamist insurgents.

Uganda, a strong U.S. security partner, has contributed the

bulk of the Somalia force and Clinton said she foresaw a day

when drones might help the United States and Uganda with another

of their joint military efforts - the hunt for renegade Ugandan

warlord Joseph Kony.

"Now we have to figure out how to look through thick

vegetation to find Joseph Kony," Clinton said, after inspecting

a drone, a small unmanned aircraft no more than a metre (yard)

long and mounted with cameras.

The United States last year dispatched about 100 military

advisers to help Uganda and other central African nations track

down Kony, whose Lord's Resistance Army has been charged with

repeated atrocities against civilians.

But Kony is at large in a vast and often heavily-forested

part of Africa, making finding him difficult.

U.S. officials stressed that Clinton's visit to Uganda was

aimed at thanking it for its strong security assistance in

Somalia and elsewhere.

But the visit highlighted lingering tensions between

Washington and Museveni, accused by critics of increasingly

authoritarian policies and of bending the constitution to

prolong his rule.

Before her meeting with the Ugandan leader, Clinton

indicated that she would gently press him to think about a day

when he might leave the political stage.

"It is important for leaders to make judgments about how

they can best support the institutionalisation of democracy,"

Clinton told reporters. "It's not about strong men, it's about

strong institutions."

(Writing by Andrew Quinn and James Macharia; Editing by Andrew

Osborn)