The 19 NATO allies have rejected the peace overture from President Slobodan Milosevic made through Russia and pledged to intensify their military campaign. But they are still shying away from a decision to send ground troops into Kosovo to prevent the ethnic cleansing by Serb forces.
The allies decided to increase pressure on Mr Milosevic with an oil embargo, following the example of the European Union, to ban all sales and delivery of oil to Yugoslavia. But France is objecting to a NATO naval blockade of tankers without the sanction of the United Nations. A blockade could also lead to a confrontation with Russia if it decides to ignore the oil embargo. In a strongly worded statement following a three-hour meeting in Washington at the start of the NATO summit, the allies declared: "We will not allow this campaign of terror to succeed. NATO is determined to prevail." The statement made no mention of sending ground troops to Kosovo, but the leaders did have some discussion "in passing" of the topic, according to a White House official.
Gen Wesley Clark, the NATO Supreme Commander, briefed the political leaders on the effect of the air strikes. He told them: "We're winning, he's losing and he knows it."
In a separate statement, President Clinton called Mr Milosevic "the last European dictator of the century", and said: "The last European dictatorship of the 20th century will not destroy Europe's long-awaited chance to live at last together in peace and freedom."
Mr Clinton warned Mr Milosevic: "When we fight, we fight to prevail, to prevail in this conflict and to build the undivided, democratic Europe that the founders of NATO envisioned 50 years ago."
But a slight crack appeared in the facade of NATO unity when the Italian Foreign Minister, Mr Lamberto Dini, condemned the bombing of the Serbian state television headquarters.
He told reporters it was "terrible", but the NATO Secretary-General, Mr Javier Solana, defended the bombing, saying that all the targets of the last few days had been listed as part of Phase Two, including the television station in Belgrade.
The allies again laid down the five conditions on which there can be "no compromise". These are an end to all military action in Kosovo; withdrawal of Yugoslav forces; agreement to an international military presence; the safe return of all refugees; and a political agreement based on the Rambouillet accords accepted by the Kosovans but rejected by Mr Milosevic.
But the firm NATO rejection of the Milosevic overture this week, that he was ready to accept "international forces" in Kosovo to end the air strikes, also seemed to leave the door open to an improvement on this offer with Russian help.
Stating that "Russia has a particular responsibility in the UN and an important role to play in the search for a solution to the conflict in Kosovo", the allies said that "President Milosevic's offers to date do not meet this test" of the five conditions. But they went on to say: "We want to work constructively with Russia," signalling that the door is open to a further initiative and that it could involve the United Nations Security Council.
Ironically, Russia has refused the NATO invitation to be part of the 50th anniversary commemoration in Washington because of the air strikes on Yugoslavia. Russia is a member of the NATO Partnership for Peace, the other 24 members of which are in Washington for a joint meeting with the 19 full members tomorrow.
NATO spelled out the way for President Milosevic to meet its five conditions. It is "prepared to suspend its air strikes once Belgrade has unequivocally accepted the above-mentioned conditions and demonstrably begun to withdraw its forces from Kosovo according to a precise and rapid timetable."
NATO would first seek a UN Security Council resolution "requiring the withdrawal of Serb forces and the demilitarisation of Kosovo and encompassing the deployment of an international military force to safeguard the swift return of all refugees."
This force will be "multinational in character with contributions from non-NATO countries", but the statement also says "NATO remains ready to form the core of such an international force," a form of wording that appears to soften the previous US insistence that NATO must lead such a force.
An "international provisional administration of Kosovo under which its people can enjoy substantial autonomy" within Yugoslavia would also be set up.