In this report, the latest massacre in Sarajevo and the Croatian offensive against the Serbs in Croatia are discussed. ABC's Garrick Utley reports on the massacre near the main market in Sarajevo. The UN believes the shells came from the south of the city, where the Bosnian Serbs are positioned, but hasn’t officially confirmed that. Karadžic says that whenever the three parties come to a juncture in peace talks, the Muslim government stages a massacre of its own people to sabotage the talks and blames the Serbs. The funeral of the three U.S. diplomats killed in an auto accident in Bosnia is shown. BBC's Mark Urban looks into a supply route to Sarajevo via Mt. Igman, living conditions in Bosnia, and the black market of petrol in the Bosnian capital. The reporter visits the family of Almir Pašić, who explains how he collects water. The peace process is discussed. Statements by Haris Silajdžić; Radovan Karadžić; Richard Holbrooke; Susan Woodward of the Brookings Institution; Mohammed Šaćirbey; Kris Jankowski of UNHCR; Fadil Jako, a Bosnian civilian; Jadranko Katina, a local journalist; Almir Pašić, a Bosnian civilian; and Sabina Sejović, a civilian convoy control; as well as interviews with journalists Tony Birtley of ABC (who has been reporting from the former Yugoslavia for the past three and a half years) and Roger Cohen of the NY Times. Footage included: the main market massacre in Sarajevo, the main hospital receiving the injured, Hoolbroke and Izetbegović going to a meeting in Paris, the Croatian Army, Milošević, Serb refugees from Krajina, UN forces convoy, funeral of the three American diplomats and the wreckage of the APC in which they were killed.