SARAJEVO. Sept 8: Uncertain about prospect* for peace, Serb and Musltm-lcd government forces appear to be preparing for new battle* on Mount Igman overlooking Sarajevo. UN official* *ald Wedne* day, report AP, Reuter.

Meanwhile fighting raged In the Muslim quarter of the southwest Bosnian city Mostar, and the area * makeshift ho* pi tai wa» now full. Bosnian radio reported today

11 said eight people had been killed, including five children. In tank shelling by Croatian troops besieging the Muslim area on the east bank of the Neretva , river during the paat 24 hours

The radio also reported fighting on Tuesday In Maglaj. In the north, and Gorazde. a Muslim enclave in the east cut off by Serb troops.

Serb fighters wrested Mount igman from Bosnian govern ment forces In early August after heavy fighting, leading President Allja Izetbegovtc to boycott peace talk* In Geneva for two week* until mo*t of the Serb* pulled out. The mountain I* Important because the government * only weapons supply route Into Sarajevo crosses It.

Cmdr Idesbald Van Ble-•ebroeck. a spokesman for UN peacekeepers in Sarajevo, said both side* began ominous troop

movement* early Tuesday

"We are talking about thousands ( of soldiers) on both sides, he said. UN officials were meeting with Serb and Muslim leaders trying to defuse the sit uatlon. he said

The Serbs had withdrawn molt of their force* to get the talks moving on a plan to partition Bosnia Into Serb, Muslim and Croat state*. But a amall Serb contingent remained on the mountain.

The peace talk* broke off laat week when Izetbegovic refused to accept what he termed an economically unvlable chunk of land aurrounded by Serba and Croats, who between them now control 90 per cent of Bosnia.

Mediators say they expect the talks to resume, but it is unclear when and under what conditions.

Van Biescbroeck said tensions on Igman, southwest of Sarajevo overlooking the UN-controlled airport, reflected growing anxiety all around the capital because of uncertainty about the future of negotiations.

Izetbegovlc told the UN Security Council late Tuesday in New York that he wanted better terms for a settlement, including more land and secure access to the Adriatic Sea. He also urged moving the talks from Geneva to New York so the Security Council can more closely monitor the UN envoy to the talks. Thorvald Stoltenberg. Izetbegovlc has accused Stoltenberg, the co-author of the peace plan, of rewarding Serb aggression.

He planned to deliver the same message tb .President Clinton on Wednesday in Washington.

White House Press Secretary Dee Dee Myers said Tuesday that Clinton would ask the Bosnian president at their meeting to keep peace talks alive.

The Clinton administration backs Bosnian Muslim negotiating demands for a larger slice of territory and has threatened air strikes If Serbs and Croats resumed offensives against key cities.

Meanwhile, the World Court will announce Monday whether It will Issue new anti-genocide orders against Serb dominated Yugoslavia or Bosnia.

The ruling comes in response to an unprecedented second request by Bosnia for the UN court's protection against what it claims are Serbian- inspired attempts to wipe out the Muslims of Bosnia