Some 27,000 Muslims fled the U.N. designated "safe area" of Srebrenica after it was captured bythe Bosnian Serb army. Despite numerous threats,NATO bombing runs, and an attempt by 400 Dutch peacekeepers to protect the city's southern edge, the U.N. could not keep the Serbs at bay. Seeking protection, some 2,000 civilians have assembled at the tiny U.N. outpost at Potocari, north of the city, and the Dutch troops are attempting to regroup around the area. There was no word on the fate of 30 Dutch hostages taken by Serb forces over the weekend. Srebrenica is the first of the six "safe areas" for civilians, which were established by the U.N. two years ago, to be overrun by Serb forces.TIME's Mark Thompsonsays: "The fall of Srebrenica forces the West into a decision. Either take it back or leave altogether." Defense Secretary William Perry seemed to be leaning toward the latter option, saying that the city's fall "raises the question as to whether the U.N. force will be able to stay in Bosnia and perform its humanitarian mission." The Clinton Administration has been one of the biggest supporters of keeping U.N. forces in Bosnia, notes Thompson, but "with this statement we may be seeing a crack in its resolve."