Balkan Update

August 28, 1993

Leaders of Bosnia's Serbs and Muslims met to decide the fate of the latest Geneva peace plan that would divide the republic into three ethnic states. The Serbs met in PALE, the Muslims in SARAJEVO, where President Izetbegovic spoke against it. Bosnian Croat leaders were to meet today.

Worried Muslims prevented a U.N. convoy from leaving MOSTAR for the second day but arranged the evacuation of five badly wounded children. Despite the U.N. presence, sporadic shelling and sniper firing continued.

In central Bosnia, British troops killed a Croat soldier and wounded two others while returning Croat fire from two busloads of troops passing a British mountain outpost.

Amid skyrocketing inflation, Yugoslavia's national bank announced in BELGRADE it was issuing a 1 billion dinar banknote, worth only $3 at the current exchange rate. Analysts have warned that the country will have to revert to a barter economy within several months as dinars become increasingly worthless.

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