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The Bosnian Muslims followed the Serbs' lead, and deep-sixed the latest proposal for peace in former Yugoslavia. Since the Bosnian Serbs are being held responsible for defeating the peace plan in the first place, it's up to the West to decide how to punish them--and all the options threaten to lead to another round of bloody fighting in the region. "The West is now backed into a corner, and it has to act," says TIME Central Europe bureau chief James Graff. In another ominous sign, U.S. Defense Secretary William Perry was forced to cancel plans to visit Sarajevo after the airport was closed because three planes were hit by bullets.