As the first day of peace talks concluded, TIME's Edward Barnes reports from Zagreb that the rebel Republic of Serb Krajina has agreed to all the demands of the Croatian government. Butthe Croatian government, flush from a string of recent battlefield victories, declined the offer, saying they want the Serbs to accept full government authority. Barnes reports that thousands of Croat troops are massed near the Krajina border. "The Croatian military has been itching totake back the land seized by the Serbs three years ago. But the Croatian government will at least postpone their long-awaited assault until they can find a reason that will satisfy the international community."