CHECHNYA . . . A RUSSIAN FLAG FLIES OVER THE PALACE

Russian President Boris Yeltsin declared victory in Chechnya today, as a Russian flag was raised over the bombed out presidential palace in Grozny. The palace, long the seat of Chechen resistance, was abandoned by the rebels last night. Still says TIME Moscow correspondent Yuri Zarakhovich, "there's a big difference between declaring victory and actually winning." Indeed Chechen rebels vowed to continue fighting despite the loss of the palace. "They will simply go into the mountains outside Grozny," says Zarakhovich. "This is something that could take years to resolve."