The reactions e+e−→e+e−π0 X and e+e−→e+e−KS0 X are studied using data collected at LEP with the L3 detector at centre-of-mass energies between 189 and 202 GeV. Inclusive differential cross sections are measured as a function of the particle transverse momentum pt and the pseudo-rapidity. For pt⩽1.5 GeV, the π0 and KS0 differential cross sections are described by an exponential, typical of soft hadronic processes. For pt⩾1.5 GeV, the cross sections show the presence of perturbative QCD processes, described by a power-law. The data are compared to Monte Carlo predictions and to NLO QCD calculations.