Talks sponsored by the United Nations began in Bonn on Tuesday with hopes that a coalition government for Afghanistan could be agreed.

With fighting continuing in southern Afghanistan as American and Taliban forces clash, and in the north where Taliban prisoners have seized control of parts of a fort near the city of Mazar-i-Sharif, the delegates were told that without peace there would be no investment to rebuild their shattered country.

Four main groups from the country are represented at the talks. The Northern Alliance is the largest group and is in the most powerful position, having removed the Taliban from power in a number of key cities. There is also a multi-ethnic delegation from the former king, Zahir Shah, who is seen as a unifying figure, a Cyprus group mainly comprised of former Mujaheddin fighters and politicians as well as exiled Afghans, and the Peshawar group which is also considered to support Zahir Shah.

Opening the talks, German foreign minister Joschka Fischer said: "Afghanistan has a great opportunity now to win peace. You first and foremost bear a tremendous responsibility for the future of your country".

The UN hopes that candidates can be nominated by each of the delegates to form a preliminary administration. Ahmed Fawzi, a UN spokesman, stressed that no restrictions were being placed on the discussions.

He said: "It's their choice. They know what the international community has to offer. Without peace there will be no development. Without peace, there will be no investment".

However the UN envoy to the talks, Francesc Vendrell, has warned that delegates are expecting too much from the talks. He said: "There have been at least five peace deals since 1989, one even sworn in the holy city of Mecca, and not one was respected".