Serbs retook territory from Muslim-led government forces and scorned a new international peace plan.

Most recent fighting has centered on MOUNT OZREN, about 50 miles north of SARAJEVO. It is at the center of a bulge of Serb-held territory that is nearly surrounded by government troops and their Bosnian Croat allies.

U.N. reports indicated Serbs had retaken some territory around ZAVIDOVICI south of OZREN, as well as some land to the east in other fighting.

Bosnian Serb leader Radovan Karadzic said a partition of Bosnia proposed by American, Russian and West European envoys was humiliating to Serbs and could lead to more war.

In WASHINGTON, the Senate narrowly rejected an effort to order President Clinton to break the U.N. arms embargo in Bosnia so Muslims can fight to defend themselves.