SARAJEVO. Apr 3: The faltering ceasefire in Bosnia re ceived yet a further blow when Serb forces bombarded the UN declared "safe area" of Bihac and diplomatic efforts to end the three year old war appeared at a virtual dead end. reports Reuter.

UN officials .said the Serbs shelled government controlled Bihac town on Sunday and staged Infantry assaults with rebel Muslims,on positions of the Muslim led Bosnian army a few dozen km (miles) to the north near Velika Kladusa.

Analysts said they feared Bosnia could be considered to a long low level conflict, with statement bn the battlefield, as the west seemed to have abandoned Its attempt to impose a peace plan on the recalcitrant separatist Serbs.

A UN spokesman said 15 shells landed inside the safe area" • radians around Bihac

town in northwest . Bosnia Eleven hit built up districts inside the town.

UN .observers reported damage but no casualties, similar attacks in the past have killed or wounded dozens in the 'main town of a mostly Muslim region of some 160,000 people beset by Serb forces since June 1992.

An amateur radio report from the Bihac enclave spoke of everything burning from shelling in the area of Velika Kladusa. a rebel Muslim held town hear the northern confrontation line of the pocket.

UN sources said rebel Muslim and Serb forces launched a fierce attack on Vronograc 15 km (nine miles) east of, Kladusa and about 50 km (30 miles) north of Bihac town, but could not say if (he front line had shifted. ’ '

The United Nations has designated Bihac town, on the

■enclave's southern edge, as a "safe area' eligible for protection by UN soldiers based there and NATO warplanes patrolling overhead.

•The’ Serbs have shelled several "safe areas" without NATO retaliation since November when they held some UN soldiers as hostages in reprisal for three allied air raids on their positions near Bihac.

NATO powers subsequently shelved threats of force to make the Serbs give up conquered land under an international peace plan opting to reserve a UN humanitarian mission crucial for the survival of civilians in Serb encircled government enclaves.

A UN mediated ceasefire, due to last four months, look effect on January 1 but has been unravelling In the absence of follow up peace talks thwarted by the Serbs refusal to yeld some of the. 70 per

cent of Bosnia under their control. .

Bothsides. including the frustrated Muslim led Sarajevo government which would have got a 50 per cent share of Bosnia under the peace plan, have Used the truce to regroup , and rearm.

Government troops launched two tactical offensives on Serb held strategic highlands in north central Bosnia last month, six weeks before the expiery of the ’ ceasefire.

The assaults appear to. have fizzled out after modest gains, sapped as in the past by the government's inability to match the Serbs in heavy cal-llbgre firepower.

Serbs have since shelled UN "safe areas' including Tuzla and Gorazde in retaliation for the Muslim offensives, both sides have indicated they will not renew the ceasefire.