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Wednesday, 14 January, 1998, 02:07 GMT
US proposes imposing currency on Bosnia

The international peace co-ordinator in Bosnia-Herzegovina, Carlos Westendorp, says he is prepared to intervene to resolve a long standing dispute over the Republic's common currency.

The United States envoy to the region, Robert Gelbard, recommended an imposed solution, after failing to reach agreement on a common currency with members of the Bosnian Serb, Croat and Muslim collective presidency.

The currency issue has been locked for months in a series of disputes over the use of national symbols.

Correspondents say international mediators are increasingly being forced to use the Dayton Peace Treaty's reserve powers to resolve Bosnia's political deadlock.

From the newsroom of the BBC World Service

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