Under the agreement, this republic would be divided into three broadly autonomous ethnic cantons in which Serbs, Croats and Muslims would govern themselves.

Mr. Karadzic spoke of turning the republic into a confederation of three ethnic cantons, but he appeared to leave no prospect of reconciliation with the Muslim-dominated Government, which insists on a unitary state.

Mr. Vance and Lord Owen, working together as mediators, tried to preserve Bosnia as a federal state with ethnic cantons.

Serbs then proposed the division of the country into three ethnic cantons, but this was rejected by Mr. Izetbegovic.

But the main British aim is to sell the idea of creating safe havens that would be transformed into ethnic cantons, each with considerable autonomy.

Then President Clinton expressed hope for the Vance-Owen peace plan, which would divide Bosnia into 10 ethnic cantons.

The representatives, who have only observer status, want Bosnia partitioned into ethnic cantons.

Sarajevo rejects ethnic cantons and will press for a unified Bosnia with four regions determined by economic interests, history and topography, as well as ethnic makeup.

It would have divided Bosnia into 10 largely ethnic cantons under a central government, but was rejected by the Bosnian Serbs.

The Muslims and Croats voted yes, while Serbs boycotted and insisted on dividing the country into three ethnic cantons.