United Nations, Thursday

BOSNIAN Serb leader Radovan Karadzic is pulling out of United Nations

peace talks in New York for the moment and returning home, his wife said

today.

It was not immediately clear when or if Karadzic would return to

participate in the conference headed by Cyrus Vance and Lord Owen on

ending the war in Bosnia-Herzegovina

Mrs Liljana Karadzic did not give a reason for the Bosnian Serb

leader's return home but she said the couple had been asked leave their

New York hotels because of demonstrations.

''They asked us to leave because the demonstrations were bothering the

other guests,'' she said, referring to protesters who had gathered

outside the Intercontinental and Grand Hyatt hotels, calling her husband

a war criminal

Karadzic's departure came after Bosnian Muslim forces launched a major

offensive near Sarajevo airport to break the 10-month Serbian siege of

the embattled Bosnian capital.

Four French soldiers in the United Nations Protection Force (UNPROFOR)

were injured in the fighting, three seriously, as well as two

journalists, including a freelance American photographer working for

Reuters.

The fighting came only hours after the United States revealed its

policy on Bosnia and prepared to take a direct role in the talks.

Karadzic, called a possible war criminal by former US Secretary of

State Lawrence Eagleburger, has been on a tight leash in New York with a

visa allowing him movement only within a radius of 10 city blocks from

the United Nations.

All sides in the conflict, as well as Vance and Owen, have welcomed

the US proposals which exclude the use of military force before a

settlement is reached and a tightening of sanctions against the rump

Yugoslavia.

Belgrade welcomed American involvement in efforts to end the war in

Bosnia but said it was astonished at the prospect of new sanctions

against Belgrade.

US Secretary of State Warren Christopher listed six limited steps

Washington would take to try to end the war.

He made clear that more drastic options, including the use of US air

power against Bosnian Serbs and allowing Muslims to acquire arms for

self-defence, had been ruled out.

Three British soldiers had a lucky escape today when their Land-Rover

was hit by an anti-tank round. The driver was slightly injured with a

minor shrapnel wound in one leg while the other two escaped unhurt in

the attack south of the town of Tuzla.

Major Martin Waters, the British forces spokesman at the UK Vitez

base, said the men were on a familiarisation trip from their barracks in

the Croatian port of Split. ''They were on their own at the time and

they seem to have taken the wrong turning,'' he said.

* Prime Minister John Major welcomed President Bill Clinton's

initiative to help end the war in Bosnia.

Mr Major said at Question Time in the Commons: ''The best way forward,

the only credible way forward that has yet been found, is the Vance-Owen

plan which we strongly support.''

However, Liberal Democrat leader Paddy Ashdown said of the Vance-Owen

plan: ''This is not a peace of which either you or other Western leaders

can feel proud.

''For it is your failures which have resulted in a price being paid in

the dismemberment of the Muslim community, the disintegration of a state

which had recognition from the United Nations, and reward for the

aggressors.''--Reuter/PA