By JOVANA GEC Associated Press Writer

PRISTINA, Yugoslavia (AP) -- Struggling to find a peace formula backed by all Kosovo factions, a U.S.

envoy met Tuesday with ethnic Albanian guerrillas whose support is crucial for any deal on the province.

The meeting came as a top ethnic Albanian politician involved in the U.S.-mediated talks said for the first

time that his side would consider accepting less than independence from Serbia, the main republic of

Yugoslavia.

Fehmi Agani told The Associated Press his side had proposed giving the largely ethnic Albanian province

the same status as Yugoslavia's two republics -- Serbia and Montenegro.

``A period of three to five years would be enough to see whether such a union could function,'' said Agani,

a top aide to the Albanian leader Ibrahim Rugova. ``If it could, we would want to stay in it. If not I don't

see why we would stay.''

Agani called for a referendum to decide on the final status of Kosovo at the end of the trial union

His comments were the first time an ethnic Albanian leader has openly accepted the idea of autonomy,

though even he indicated peaceful coexistence probably wasn't possible.

Serb authorities have previously ruled out Yugoslav republic status for Kosovo.

And the Kosovo Liberation Army rebel group has not indicated they would accept anything less than the

independence they have been fighting for. They have also criticized Rugova's readiness to compromise.

Special American envoy Christopher Hill, who has drafted a peace plan for Kosovo, met with

representatives of the KLA for two hours Tuesday in Dragobilje, 30 miles southwest of Pristina. The talks

were held in a house in the village, with KLA fighters providing security.

Hill made no comment, but Jakup Krasniqi, a KLA official who attended the talks, said the guerrillas

voiced their complaints about the plan and would send their final response in written form within 10 days.

Adem Demaci, a guerrilla spokesman, praised Hill's decision to include the KLA.

``Rugova can sign anything, but there could be no deal without KLA consent,'' Demaci said.

Meanwhile, Agani confirmed that his delegation would not attend direct talks called for by Serbian

President Milan Milutinovic.

The ethnic Albanians refuse to talk without U.S. and European mediation, saying only foreign countries

could guarantee that an eventual agreement would be implemented by the Serbian government.

The Serbian government says the troubles in Kosovo, where hundreds of people have died and tens of

thousands were left homeless in its crackdown against secessionists, are Serbia's internal matter and should

not involve foreign mediators.

AP-NY-11-17-98 1841EST