Instead Bosnia was split into a Bosniak-Croat federation and the Republika Srpska (RS).
He added that all contacts with the Muslim-Croat federation have been suspended, yet he didn't want to sever ties completely.
He went abroad several times to parley with Sejfudin Tokic, a Muslim politician from Bosnia's other entity, the Muslim-Croat Federation.
President Alija Izebegovitch was adamant that despite ongoing unhappiness with some provision, the agreement had the full support of the Muslim-Croat Federation.
The U.S.-brokered Dayton treaty ended Europe's worst conflict since World War II by dividing Bosnia into a Muslim-Croat federation and a Serb republic.
The Bosniak-Croat Federation, together with the Republika Srpska, make up Bosnia-Herzegovina.
Within Bosnia, the Muslim-Croat Federation is evicting illegal occupants of houses.
In 2003 people in Brcko earned twice the average pay of people in Republika Srpska, and a quarter more than the average in the Bosniak-Croat federation.
Yet the Dayton agreement's plan for rebuilding a single Bosnian state, involving autonomy for both a Muslim-Croat federation and a Serb republic, has come to little.
Under the agreement Bosnia would be preserved as a single state but still divided into two separate republics -- the Bosnia-Croat Federation and the Bosnian Serb Republic.
In the first year after the war ended, Bosnia's Serbs got hardly any, because the statelet's rulers refused to go to a donors' conference as part of an all-Bosnia delegation embracing Bosnia's Muslim-Croat federation.
For his part, the Yugoslav leader - a long-standing Serb nationalist - is pressing for the establishment of closer links between his country and the Bosnian Serb republic, the entity that the Dayton accords created within Bosnia along with the Muslim-Croat federation.
Powell travels to Bosnia on Friday where tensions are rising as Croat hardliners attempt to pull away from a federation with their Muslim neighbours.
It has 14 often competing and overlapping administrations, including a weak central government and a complete administration apiece for the Serb republic and the Croat-Bosniak (as Bosnian Muslims are now known) federation.
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