The campaign:
Nato denied its warplanes were responsible for bombing a bus near Pec, Kosovo, in which Serbian officials claim at least 17 people died.
Nat o commander General Wesley Clarke said in Tirana the alliance had "our most effective day yesterday and also the day before in attacking targets on the ground inside Kosovo." Air strikes were "having a tremendous effect" on President Milosevic's forces and would be intensified.
Nato also conducted a series of attacks on targets in the rest of Serbia, including a television station and oil refinery.
An f-16 fighter shot down a Yugoslav MiG during heavy Nato raids on airfields, Pentagon claimed.
US Senate quashes measure that would have allowed President Clinton to use "all necessary force" in the conflict.
Analysis:
Nato's handling of the crisis in Kosovo has been a catalogue of diplomatic errors and military tactics which ignored the basic principles of warfare, said the IISS.
Refugees:
Nato said the arrival in Macedonia on Monday of 11,600 refugees, the biggest one-day exodus of ethnic Albanians since April 2nd, meant that Serbian security force in Kosovo have resumes ethnic cleansing on a massive scale.
UHCR will begin transferring thousand s of Kosovo refugees from overcrowded Macedonia to Albania in next few days as a "last resort".
Nearly 875,000 refugees have fled Kosovo since March 1998, 705,000 of them since bombing campaign - UNHCR.
Italy to take in 10,000 refugees; Britain under criticism for having accepted so few, will accept up to 1,000 refugees a week. Germany has doubled its intake to 20,000.
Diplomacy:
Talks between President Clinton, Vice-President Al Gore and Russian envoy Victor Chernmoyrdin failed to produce a "breakthrough", White House said. Chernomyrdin was next due to meet UN Secretary General Kofi Annan.
German foreign Minister Joschka Fischer said the Group of Seven industrial powers plus Russia (G8) will meet in Bonn on Thursday to discuss the conflict.
Nato has agreed that ant future international presence in Kosovo will come under the UN flag, Russian Deputy Foreign Minister Alexander Avdeyev said yesterday, there was no confirmation from the Nato side.
Inside Serbia:
Foreign Minister Zidadin Jovanovic said yesterday that 1,200 Yugoslavs have been killed by Nato bombing and 5,000 people have been seriously wounded; 300 schools have been hit.
11 premature babied in a Belgrade clinic were threatened by Nato air raid which cut power to incubators for several hours, the director said.
In the Region:
Bulgarian MPs voted to let Nato use its airspace for bombing missions against Yugoslavia, despite public opposition.
British Prime Minister Tony Blair pledged international aid for the front-line state suffering economic and political fallout from the Kosovo crisis, saying their future was threatened.
Quote of the Day:
"Where are the ever-so-militaristic British when it cones to offering aid?" Hanoversche Allgemeine Zeitung.