Bosnian Serb leader Radovan Karadzic says that the status of Sarajevo may prove to be a sticking point in the Dayton peace negotiations.

Karadzic told APTV the Posavina corridor was no longer disputed, apparently confirming reports that Muslim and Croat negotiators had dropped claims to this strategic area linking Serbia proper with Serb-held territory in Bosnia.

An ebullient Karadzic was toasting peace with his aides Friday in the Serb-controlled Bosnian village of Han Pijesak.

Karadzic expressed mixed optimism about the chances of an imminent peace agreement.

SOUNDBITE: (English):
There is a good chance for success at the Dayton talks, but there is also a chance for their failure because the Muslim side is trying to dominate us through the central bank and through other institutions that are absolutely unnecessary and that are not willing to have a stable long lasting solution and long lasting peace. We should have avoided all the solutions that have caused this war. That's why I am sometimes optimist but sometimes very pessimistic because Muslims are trying to avoid the solution in the first place.
(And what are the next steps?)
Well, if peace is the next step should be the limitation taking your military position then disengagement of the forces then implementation of the whole people.
(And what are the latest information regarding the Posavina - so-called Posavina corridor - and Sarajevo?)
I think Posavina is not a disputed area any longer, but in Sarajevo, I'm afraid we are going to have a very bad solution. Anything that is not definite is not good. Any provisional solution is not a long lasting solution.
SUPER CAPTION: Radovan Karadzic, Bosnian Serb Leader

Karadzic later chaired a meeting of foreign businessmen who in the event of a peace deal may pump much-need investment into Serb areas of Bosnia.

Karadzic appeared unfazed by the latest war crimes indictment against him from the U-N tribunal in The Hague.

SOUNDBITE: (Serbo Croat)
"We are just doing our business, but if we get 55 percent of Bosnia and independence I would go to the Hague on foot, and I'd go via Croatia".
SUPER CAPTION: Radovan Karadzic, Bosnian Serb Leader

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