Belgrade erupted in celebratory gunfire after word of the withdrawal agreement flashed through the Yugoslav capital, but by the next morning people wanted to know more about the deal and who had done the backing down.

President Slobodan Milosevic appeared on TV for only the second time since the war started, to claim victory.

"We have never had such a big victory as this, with so few traitors among us," he said speaking awkwardly, off the cuff.

He said only 576 Yugoslav soldiers and policemen had died - a fraction of Nato's estimate.

The government-controlled press has not mentioned Nato's role in the withdrawal deal, and has presented everything as an agreement between Yugoslavia and the United Nations.

However, independent newspapers have told people much more about the situation.

One reveller said that there were no real winners.

"There are no victors, only losers. Serbs are only losers and Albanians are second losers, because they lose their homes and jobs and they will never be able to live with Serbs ever again," he said.

"Victory for us and for them - equal, it's 50/50," said another.

Loud celebrations

John Simpson in Belgrade: Relief, joy and defiant pride

As news of the peace spread on Wednesday night, several hundred people came out on to the streets, firing guns, letting off fireworks and generally showing their delight.

BBC World Affairs Editor John Simpson says there was no real hostility, and a half-hearted attempt to burn the Union Jack fizzled out.

The revellers were particularly pleased when suddenly the street lights came on, after weeks of black-out.

The Serbian news agency Beta reported similar scenes across Yugoslavia.

"Shooting from hand-guns and loud techno music was heard in Nis, Novi Sad and Kragujevac," Beta said. All three cities had been heavily targeted in Nato's bombing raids.

Serbia's state-run broadcasters acclaimed the deal as a victory for President Milosevic.

"The policy of Yugoslavia and President Slobodan Milosevic has won the war," Serb TV said.

The agreement "guarantees the implementation of the agreement from Belgrade on the political solution to the (Kosovo) crisis," it added.