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Russian troops, pressing further into Grozny with their latest wave of artillery and rocket attacks, today came within yards of seizing the symbolic presidential palace in the Chechen capital. Chechen rebels have pressed the defense of the city even though their president on Wednesday publicly admitted they were outmatched militarily. Moscow news reports said Russian forces now occupy the Chechen government headquarters, a "key target" across the street from the palace. TIME correspondent Ann Simmons, reporting from Moscow, says many Russian officials believe the inevitable fall of Grozny will merely spark a more fragmented guerrilla war as rebels dig in at camps in the Caucasian mountains: "Some have been saying, look out for terrorist attacks on Moscow."