RUSSIAN FOREIGN MINISTRY WARNS OF ESCALATION IN YUGOSLAVIA.

A Russian foreign ministry spokesman said August 17 that Yeltsin’ssuggestion that Russia might unilaterally withdraw from the sanctionsregime against Belgrade reflected "Moscow’s concern thatBelgrade’s peace policy, an important factor in the process ofthe non-violent settlement of the crisis on the territory of theformer Yugoslavia, is not being used to the full." UnlessBelgrade’s "peace potential" is exploited, the spokesmansaid, the conflict could escalate. Meanwhile, Russian media gaveextensive coverage to plans to keep injured and orphaned childrenfrom Serb Krajina in Russia until the conflict in their homelandis over, and to public demands by Russian Orthodox leaders thatthe international sanctions against Belgrade be lifted.

No Information on Second American Missing in Chechnya.