The talks started without handshakes

The talks were supposed to steer clear of contentious issues like Kosovo's desire for independence.

But Kosovo President Ibrahim Rugova used the occasion to insist that breaking away from Serbia was a top priority.

And the Serb side made it equally clear that it was talking to Kosovo only as a constituent part of the country.

This is the first time they have talked to each other. This is a very important day Javier Solana EU foreign policy chief Kosovo's deep divide

International officials were at pains to stress that even the opening of the talks was itself a breakthrough.

"This is a very, very important meeting," said EU foreign policy chief Javier Solana, who was at the talks.

"This is the first time they have talked to each other. This is a very important day."

But statements from the main participants highlighted their differences.

"My country, Kosovo, wants to become a part of the European Union and Nato," said Mr Rugova.

"This means a democratic, peaceful and independent Kosovo."

The only good thing is that after several years we sat at the same table Zoran Zivkovic Serbian Prime Minister

Serbian Deputy Prime Minister Nebojsa Covic insisted that Kosovo was a part of his country.

"There can be no dialogue if it is not clear to everyone that we are not talking as representatives of two states," he said.

"Sadly my initial optimism is greatly reduced. My ambitions have deflated and my hope in the success of our project has declined."

Serbian Prime Minister Zoran Zivkovic added: "There was no dialogue, particularly not a direct one.

The Vienna talks are only meant to look at practical issues

"The only good thing is that after several years we sat at the same table."

Kosovan Prime Minister Bajram Rexhepi refused to attend the talks at all, insisting the time was "not right".

There had been fears that the Vienna talks would not take place at all, after Serbia said on Monday it was reconsidering its position, possibly in anger at the absence of Kosovo Serbs.

"The fact is that this meeting has happened," said EU external affairs commissioner Chris Patten. "Did we expect anything spectacular? No. They got into the same room and started talking."

The talks were formally opened by Austrian Chancellor Wolfgang Schuessel, who urged both sides to continue on the path of dialogue.

But correspondents noted that the two sides declined to shake hands as the talks started, and gave separate news conferences afterwards.

Discussions focused on four areas:

• the return of refugees
• missing people
• transport and communications
• energy

Kosovo has been administered by the United Nations since the 1999 war, which saw Serb forces withdraw from the province following a Nato air campaign.

Serbs say Kosovo is part of Serbia; the majority ethnic Albanian population in Kosovo wants independence.

Kosovo Prime Minister Bajram Rexhepi refused to attend

The talks were led by UN mission head Harri Holkeri.

Nato Secretary-General George Robertson was also there.

Mr Rexhepi's decision not to go appears to have led UN officials to cancel invitations to an ethnic Serb and an ethnic Turk in the delegation, on the grounds that Kosovo's government could not be represented by ethnic minorities alone.

Many Albanians are also concerned that their attendance would amount to an implicit acceptance of Serbia's recently reaffirmed declaration of sovereignty over Kosovo.