Yugoslav Prime Minister Milan Panic appears to be losing his grip on power, which spells more trouble in the Balkans for the incoming Clinton Administration. On Nov. 3, the former American pharmaceutical magnate barely escaped a no-confidence legislative motion. The vote was orchestrated by Serbia's ultra-nationalist President Slobodan Milosevic, who recruited Panic in July to help break the U.S. trade embargo against Yugoslavia. Since then, Panic has incurred Milosevic's wrath by backing peace initiatives to extract Serbian forces from Bosnia and Herzegovina.

Should Panic be forced out, the new Clinton Administration probably will face an even more assertive Yugoslavia. The Clinton transition team is already considering lifting an arms embargo that has given better-armed Serbs an advantage against Bosnian fighters.

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