The polling on Thursday was called on the initiative of Yugoslav President Slobodan Milosevic, a hardline Serb, although the situation in Kosovo, where 1.8 million Albanians have demanded independence, has been explosive since February end.

That was when a Serbian security forces operation lead against the alleged Albanian terrorists ended in killing at least 80 Albanians, among them were 20 women and children and seven policemen.

The referendum threatens to lock the two sides in their uncompromising positions, far from any agreement because of their irreconcilable demands. The Albanians have been refusing to talk with the Serbian government delegation for five weeks now, unless foreign representatives are present. Such a demandhas been rejected by Belgrade. But, the international community has supported it.

The two sides have also been accusing each other of preparing armed actions, while the Yugoslav Army said it had prevented two attempts by armed groups from neighbouring Albania from entering Yugoslav territory. However, the allegation was denied by Tirana. The situation in the western part of Kosovo around Decani, near the Albanian border, was described as ``dramatic'' on Monday by the main Albanian party in the province, the Kosovo Democratic League (LDK) of Ibrahim Rugova. The LDK said there were ``indications that preparations are underway for the Serbian forces to launch a massive-scale attack against the local Albanian population''. ``Several hundred soldiers, wearing camouflage uniforms and masks, backed by heavy weaponry, including 200 mm guns, have been deployed,'' the party said in a statement. The party added, ``In the absence of concrete measures to prevent a new massacre,'' ethnic Albanians in the Decani regionwere arming themselves.

More troops poured into the area on Tuesday, including a convoy of armoured vehicles, trucks and jeeps were spotted heading towards the western town of Pec. This region is an Albanian separatists' stronghold, according to Belgrade. The Belgrade daily Dnevni Telegraf said on Wednesday that the separatist Kosovo Liberation Army (UCK) had mobilised several thousand armed men, and fired on Serbian police near Decani on Tuesday, causing no casualties. On March 24, three Albanians and one policeman were killed in an fight between Serbian police and armed ethnic Albanians, who make up 90 percent of the Kosovo population.

``People and leaders of the Kosovo republic (self-proclaimed by the Albanians in 1991) are determined on an unconditional dialogue with mediation and international guarantees for the application of an eventual agreement,'' Rugova's adviser said.