Balkan Update

June 17, 1993

Signs of a possible deal to divide Bosnia emerged during at meeting in GENEVA of Yugoslavia's Bosnian, Serb and Croation leaders.

U.N. Secretary-General Boutros Boutros-Ghali ruled out lifting a U.N. arms embargo to help Bosnia's Muslims, saying this would jeopardize the U.N.'s humanitarian effort. "We can't have the coexistence of two operations," he said in VIENNA.

A team of eight U.N. observers entered GORAZDE after the top Bosnian Serb general finally ordered his men to let them in. Bosnian radio spoke of fierce fighting before the monitors entered the area, pounded relentlessly by Serb gunners for three weeks. But a U.N. official said they reported the situation was calm when they arrived.

Up to 10,000 Croats were reported fleeing from the KAKANJ area after a Muslim advance in the region. SARAJEVO was unusually quiet.

In the latest sign of economic disaster exacerbated by U.N. sanctions, the Yugoslav government in BELGRADE announced a 90 percent devaluation of its currency, the dinar. The new official exchange rate will be 1.1 million dinars against the dollar, bringing it in line with the black-market rate.

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