The U.S. ambassador to Zagreb issued the warning as Croatian political and military leaders issued threats to take back Serb-held territories in Croatia by force if negotiations sponsored by the superpowers do not make progress by Sept. 30.
Croatia has said that it may cancel the mandate of 14,000 UN peacekeeping troops who are currently separating its troops from Serbs in the third of the country left occupied after a peace deal ended its 1991 war of independence from Yugoslavia.
Ejecting peacekeepers would represent a desire to renew war against separatist Serbs in the areas known as the Krajina, diplomatic observers have said.
"The danger of a new war remains," Ambassador Peter Galbraith told Croatian refugees expelled from the Krajina by the Serbs.
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