"Final arrangements for the Bosnian-Croat federation "must provide it with viable, realistic and reasonable territory consistent with the concept described above.

The United States also demanded the dismissal of another military official, though not because of connections to Iran, and raised concerns with Bosnian leaders about the structure of the military and their control over it under the Bosnian-Croat federation called for by the Bosnian peace accords negotiated last year in Dayton, Ohio.

This week, the American envoy Richard C. Holbrooke will return to the Balkans and his shuttle diplomacy, seeking to flesh out the principles agreed to in Geneva last week under which the Bosnian-Croat federation and the Bosnian Serbs would divide the country.

International A3-11 TENSION IN BOSNIA SUBURBS NATO has ordered reinforcements to quell mounting lawlessness in the last two Serbian-held suburbs of Sarajevo that are to be handed over to the Bosnian-Croat federation.

Fifty-one percent of the country will be allocated to the Bosnian-Croat federation and 49 percent to the Bosnian Serbs.

But, angering the remaining Serbs, many of the policemen wore the insignia of the Bosnian Government, rather than badges of the Bosnian-Croat federation, as had been agreed.

Bosnia is to remain a single country but it will be divided into two republics: one governed by the Bosnian-Croat federation, which will have about 51 percent of the territory and one by the Bosnian Serbs, which will have about 49 percent.

The principles call for free, internationally monitored elections to select a collective national presidency, with two-thirds of its members from the Bosnian-Croat federation and one-third from the Serbvs, and a parliament divided along the same lines.

Separating the forces of the Bosnian-Croat federation and those of the new Serbian republic will mean routinely doing business with representatives of the two men.

"We agreed to the proposal on the establishment of the Bosnian-Croat federation."