SARAJEVO -- A United Nations official on Friday slammed as "terrorism" Serb missile attacks on a Western safe area as embattled Serb leaders deferred to their parliament a decision to impose martial law to counter serious military setbacks.


Two converted SA-2 surface-to-air missiles hit Bihac town Thursday, damaging buildings and wounding seven people, including one child who was seriously injured, U.N. Protection Force spokesman Thant Myint-U said Friday in Sarajevo.


"This inexcusable attack by surface-to-air missiles was devoid of any military value and can only be considered an act of terrorism, reckless in its targeting, designed to provoke fear among the people of Bihac," the spokesman said.


In apparent retaliation for the loss of 250 square kilometers of territory following a recent Moslem offensive in the area, the Serbs have fired a total of seven SA-2 missiles on the Bihac pocket in the last 48 hours.


Other targets included the towns of Cazin and Buzim.


The spokesman said one missile landed very close to a school in Bihac town, damaging 30 to 40 buildings and creating a four meter crater.


The SA-2 is an old, 1960's missile with a 250-pound warhead intended to bring down high-flying bombers. Using it in ground mode is very unusual, U.N. experts said.


The Bosnian-Serb supreme command decided Friday to ask the Bosnian-Serb parliament next week to impose martial law on Serb territory to counter a series of heavy military setbacks, Bosnian-Serb leader Radovan Karadzic said.


"We are going to declare a state of war in our assembly and call a general mobilization and fight to the final victory," Karadzic told Reuters.


Informed sources at the Serb headquarters of Pale expected the hardline parliament to smoothly endorse the call for martial law, which would include such measures as mass mobilization and placing the economy on a war footing.


As well as significant defeats in the northwest, Bosnian Serbs have in the last two weeks lost the town of Kupres and come under pressure at Trnovo, south of Sarajevo.


Meanwhile, at the United Nations in New York, the General Assembly voted 97 to zero with 61 abstentions to lift the international arms embargo on Bosnia, detrimental mostly to the under-armed Bosnian government side.


But, the resolution was non-binding and the vote signalled a potential setback for U.S. hopes of pushing a binding measure through the Security Council.


?A Bosnian Moslem was formally placed in custody on Friday charged with air piracy for hijacking a domestic Norwegian flight in a bid to seek more international aid for his shattered country.


The lone unarmed hijacker, identified by police as Haris Kec, 25, a Moslem from the besieged Bosnian capital Sarajevo, surrendered Thursday evening at Oslo's Gardermoen airport.


Kec was remanded in custody while investigations continue.