SERIOUS INCIDENT IN UNPA SOUTH, UN SAYS

ZAGREB, Dec 1 (Hina) - Croatian army and rebel Serb forces yesterday exchanged mortar, machine-gun and small-arms fire in UN Sector South, the UN in Zagreb said today. The incident occurred between 11:00 and 17:00 hours in the vicinity of Limari, Karaula and Vranovaca, spokesman Alexander Ivanko said, adding that the Croatian army fired 33 shells in all. UN spokesman Michael Williams described the incident as "one of the gravest since March 29," when the cease-fire agreement was signed. No less than 129 cease-fire violations were reported on separation lines in Croatia yesterday, Williams said. Asked whether the Croatian army was stepping up activities in the region, Ivanko said no major re-grouping of Croatian army troops indicating its offensive intentions had been reported. (hina) as 011437 MET dec 94