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The Clinton administration would not accept a Bosnian election in which Serb leader Radovan Karadzic was allowed to run for office, an administration official said Friday.

"We do not believe the elections in September, if they included Karadzic as a candidate would constitute the kind of election that would be acceptable to us," said the official, speaking only on condition of anonymity.Karadzic has been indicted by the international war crimes tribunal in The Hague. Under the Bosnian peace agreement reached at Dayton, Ohio, individuals indicted for war crimes are barred from seeking elective office.

The administration official said that "indications are Karadzic thinks he will be a candidate. We think that's unfortunate."

Another roadblock to full implementation of the peace agreement is the presence of Muslim volunteer fighters in Bosnia, many of them from Iran.

"They have gone from as many as 5,000 to a couple of dozen," said the administration official. He said supplying and training the Bosnian military still is being held up until Adm. Leighton Smith, commander of the peace force, is satisfied that all volunteers that would pose any threat have left the country

The New York Times reported Friday that a that a draft intelligence report circulating in the American government is pessimistic about the chances that Bosnia will hold together as a multiethnic, unified state.

The National Intelligence Estimate report is a classified attempt to put together a consensus view of American intelligence agencies.