Exasperated French leaders, trying to ignite the peac process, said France will pull 2,500 peacekeeping troops out of the former Yugoslavia by year's end. France's 6,000 troops form the largest contingent in the U.N. force.

The Serbs reported their forces had retaken much of the territory around TUZLA lost to the Muslims in five days of fighting that cost both sides many casualties.

In BELGRADE, mediators Lord Owen and Thorvald Stoltenberg discussed the new American-Russian-European peace plan with Serbian President Slobodan Milosevic.