The Security Council welcomed the calm and stable situation on the Prevlaka peninsula and was encouraged to learn that both Croatia and the Federal Republic of Yugoslavia had agreed to establish a Border Commission. It noted that the presence of UNMOP contributed greatly to maintaining conditions conducive to a settlement of the dispute.
The resolution welcomed that Croatia and the Federal Republic of Yugoslavia (Serbia and Montenegro) were making progress in the normalisation of their relations. It urged both parties to cease violations of the demilitarisation regime, co-operate with United Nations observers and to ensure full freedom of movement to the observers.[2] Both countries were called upon to implement confidence-building measures from Resolution 1252 and to report on the progress of their bilateral negotiations at least twice a month. Finally, the Stabilisation Force, authorised in Resolution 1088 and extended by Resolution 1357, was required to co-operate with UNMOP.
Croatia had asked for the mission to be suspended to allow more time for both countries to settle their differences, while Montenegro favoured a longer mandate.[3]
