Fierce fighting erupted in the Bosnian capital Sarajevo Thursday morning, despite the imposition of a European Community trade ban on a "rump" Yugoslavia.

Sarajevo radio said shooting broke out late Wednesday, hours after a mortar attack which killed at least 16 people and injured about 100 as they queued for bread and ice cream. Battles continued through the night in many parts of the city.

Bosnia's Muslim and Croat leaders said the attack in central Sarajevo came from a hill occupied by Serb paramilitary forces. They called for foreign military intervention and pulled out of EC-sponsored peace talks with Serb leaders under way in Lisbon.

The EC imposed a trade ban on Yugoslavia to try to stop a two-month conflict that has killed more than 2,300 people and forced more than one million from their homes. The ban stops two-way trade worth $240 million per month.

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