Macedonia rebels to pull back

Vehicles belonging to the UN and OSCE were torched during the rioting

SKOPJE, Macedonia (CNN) -- Ethnic Albanian rebels have agreed to pull back to their former positions behind a cease-fire line after hours of talks in Macedonia, NATO sources say.

The Macedonian defence and interior ministries had issued an ultimatum to the rebels, demanding they pull back after a night of fighting in Tetovo in which the rebels overran a number of police checkpoints and battled government troops.

The rebels took over at least three areas of the city.

If they had not agreed to pull back, the government had said it would abandon talks to end the violence and Macedonian security forces would push ahead with a military campaign to defeat the rebels.

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Wednesday's agreement, according to NATO sources, allows for the return of some 8,000 Macedonians displaced from their homes by the rebels.

Many of those Macedonians took out their frustration with the rebels, and what they contend is Western aid for them, on the streets of Skopje on Tuesday night, targeting the embassies of Germany, Britain and the United States.

Security around the U.S. Embassy was beefed up after the clashes.

U.S. Embassy officials told CNN about 50 protesters threw rocks outside the building but did not do any damage.

Protesters also smashed windows at a McDonald's fast food restaurant and burned vehicles belonging to the Organization for Security and Cooperation in Europe (OSCE).

The State Department on Wednesday strongly condemned the anti-Western violence and categorically denied suggestions that the United States supported the rebels.

"We call on the multi-ethnic government of Macedonia to redouble its efforts to protect these establishments in case here should be further such attacks," said Deputy State Department Spokesman Philip Reeker.

On Tuesday evening, the U.S. State Department reissued a travel warning for Macedonia, urging U.S. citizens to defer travel there, and for those already in the country to leave.

"Amid a climate of rising anti-foreigner sentiment, there has been an increase in acts of intimidation and violence against American citizens in Macedonia," the advisory said.

The U.S. Embassy was closed on Wednesday as a precaution. A senior State Department official told CNN the embassy would remain closed on Thursday as embassy officials review the security situation.

Pentagon sources say a special U.S. Marine security force is on standby in Italy for possible deployment to Macedonia, to beef up security at the U.S. embassy.

Sources say a so-called FAST (Fleet Anti-terrorist Support Team) unit of 46 specially trained Marines would be dispatched to Macedonia, if the U.S. ambassador requested increased security.

Currently there are no Marine guards at the embassy, only a 10-soldier detachment from Task Force Able Sentry, the 500 U.S. support troops based at the airport. Pentagon officials say there has been no decision as of yet to send in the Marines.

Peace talks between majority Slav and ethnic Albanian political parties were said to be frozen, with some Albanian officials fearing to go to Skopje because of rioting there by Macedonians.

NATO said on Wednesday that Secretary-General George Robertson and European Union envoy Javier Solana would return to Macedonia on Thursday in the hope of getting the political talks back on track.

In Tetovo, where fighting raged for more than six hours overnight between government and rebel forces, streets were deserted Wednesday morning as residents scrambled to get food and other supplies.

Rebel forces had taken six villages in the Tetovo area in recent days and large numbers of civilians had found themselves trapped between the warring forces.

The Macedonian government on Tuesday accused NATO of aiding the rebels.

"NATO is a friend of our enemies," spokesman Antonio Milosovski said. He said United State envoy James Pardew and his European Union counterpart, Francois Leotard, were giving "direct support" to the National Liberation Army, an ethnic Albanian force.

Robertson rejected the assertion, saying NATO has not and will not provide any support for the rebel forces.

"The allegations that have been made in some quarters about our supporting ethnic Albanian extremists are unfair, they are inaccurate and they are wrong," Reeker said.

"The abuse by armed extremists of the ceasefire to improve their military positions is unacceptable and we condemn ceasefire violations by the so-called National Liberation Army in its continuing pursuit of territorial gain in blatant violation of the cease-fire pledge."

He added that this was "not the time for Balkan conspiracy theories."

"This is the time for all of the leaders in Macedonia of all ethnicities to work together on the political solution," Reeker said.

The ethnic Albanian rebels say they are fighting for greater rights for Macedonia's Albanian minority.

The United States, European Union, and NATO have been attempting to have the country's political parties negotiate a political settlement.

The population of Macedonia is just over two million, according to the CIA World Fact Book. Macedonian Slavs make up 66 percent of the population; Albanians 22 percent.

-- CNN's Chris Burns and CNN Military Affairs Correspondent Jamie McIntyre contributed to this report.