Macedonian deal on despite fighting

Ten Macedonian soldiers died in Wednesday's fighting

Macedonia's rival politicians will sign a peace agreement on Monday, diplomats said, despite one of the bloodiest day's fighting since the six-month-long troubles broke out.

European Union envoy Fracois Leotard said the Macedonian and ethnic Albanian sides had pledged to sign the agreement.

Details of its contents are sketchy, but it is expected to give the country's ethnic Albanian minority more rights, and pave the way for up to 3,500 Nato troops to start disarming the rebel fighters.

Ten Macedonian soldiers were killed on Wednesday as they drove in convoy along a motorway between the capital, Skopje, and the country's second-biggest city, Tetovo. Government officials called it an ambush.

A fierce gun battle was reported to have followed the attack, near Grupcin, with rebels and soldiers dug in on different sides of the motorway.

The deaths, of two officers and eight reservists, marked the highest number of casualties the Macedonians have suffered in a single day since the fighting began.

By the evening sources said calm had been restored.

In Tetovo itself, eyewitnesses said the southern part of the city had fallen to the rebels. There were also reports its civilian population was leaving.

One ethnic-Albanian civilian was reported to have been killed and two Macedonians wounded, including a three-year-old girl.

We condemn all acts of violence and call on all parties to refrain from any violations of the ceasefire

International mediators' statement

Guerrillas from the ethnic Albanian National Liberation Army (NLA) were seen searching Macedonians' houses in the south of the city.

They had also set up a roadblock and were checking cars heading south towards the town of Gostivar.

And in Skopje, hundreds of Macedonians were reported to have gathered to protest at the soldiers' deaths and at the announcement of the peace deal, which many see as giving in to violence.

In the southern Macedonian town of Prilep, the home town of some of the soldiers killed in the attack, the interior ministry imposed a curfew after reports said ethnic Albanian-owned shops had been looted and a mosque burned in retaliation.

Negotiations to the end

Observers say more negotiations will be needed before the final signing of the peace deal on Monday.

However, it is expected to cover the issues of the status of the Albanian language, the ethnic composition of the police force and the disarmament of the rebels, who are not directly participating in the negotiations.

Nato has pledged to deploy 3,500 troops to oversee the rebels' disarmament once a political agreement is in place and a ceasefire is holding.

And the actual implementation of any deal will bring problems of its own.