Arsenic Trioxide in Treating Patients With Chronic Phase Chronic Myelogenous Leukemia That Has Not Responded to Previous Treatment

DISEASE CHARACTERISTICS: * Diagnosis of Philadelphia (Ph) chromosome positive (or breakpoint cluster region bcr positive) chronic myelogenous leukemia in chronic phase * Ineligible for or refused allogeneic bone marrow transplantation * Interferon alfa refractory or intolerant as defined by the following: * Refractory: Failure to achieve a complete hematologic response lasting for at least 1 month after prior therapy with interferon alfa based regimen for at least 3 months 65% or more Ph positive chromosomes in bone marrow after one year of interferon alfa based therapy * At least a 30% increase in Ph positive chromosomes in bone marrow in samples taken at least one month apart OR * An increase of at least 65% in Ph positive chromosomes in bone marrow * Intolerant: Grade 3 or greater nonhematologic toxicity Autoimmune phenomenon at any grade * No accelerated phase or blastic phase disease as defined by the following: * Greater than 15% blasts or basophils in the peripheral blood or bone marrow * Greater than 30% blasts plus promyelocytes in the peripheral blood or bone marrow * Documented extramedullary blastic disease outside liver or spleen * Platelet count less than 100,000/mm3 unrelated to therapy * Clonal evolution (additional chromosomal abnormalities other than Ph chromosome) as solitary feature is not considered accelerated disease * No known brain metastases or central nervous system (CNS) disease PATIENT CHARACTERISTICS: * Age: 12 and over * Performance status: Zubrod 0-2 * Life expectancy: At least 2 years * Hematopoietic: See Disease Characteristics * Hepatic: Unless due to direct disease infiltration of the liver: * ALT and AST no greater than 2.5 times upper limit of normal (ULN) * Bilirubin no greater than 1.5 times ULN (unless due to Gilbert's disease) * No hepatic disease that would preclude study * Renal: Creatinine no greater than 1.5 times ULN Creatinine clearance at least 60 mL/min * Cardiovascular: No history of New York Heart Association grade III or IV cardiac disease * No cardiovascular disease that would preclude study * No unstable angina pectoris or cardiac arrhythmia that would shorten life expectancy * Other: No history of grand mal seizures other than infantile febrile seizures * No active secondary malignancy or other uncontrolled concurrent medical problem that would shorten life expectancy * No neurologic, endocrine, or other major systemic disease that would preclude study * No active infection uncontrolled by oral or IV antibiotics * No history of hypersensitivity to the study drug or drugs with similar chemical structure * No mental condition that would preclude study Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective contraception PRIOR CONCURRENT THERAPY: * Biologic therapy: See Disease Characteristics * No concurrent bone marrow or peripheral blood stem cell transplantation * Chemotherapy: At least 14 days since prior chemotherapy (48 hours for hydroxyurea and 6 weeks for busulfan) and recovered (unless evidence of rapidly progressive disease) * No other concurrent cytotoxic chemotherapy * No prior arsenic trioxide * Endocrine therapy: No concurrent steroids for the treatment of neoplasms (except for new adrenal failures) * No concurrent hormones for the treatment of neoplasms (except for nondisease related conditions) * Radiotherapy: At least 14 days since prior radiotherapy * No concurrent radiotherapy * Surgery: Not specified * Other: At least 14 days since other prior investigational agent * No other concurrent investigational or antileukemic agents