The council was concerned that Croatia and the Federal Republic of Yugoslavia (Serbia and Montenegro) had failed to make progress in adopting practical suggestions proposed by the United Nations military observers in May 1996 in order to reduce tension and improve safety and security in the area in addition to resolving the Prevlaka dispute.[2]
The parties were urged to fully implement an agreement on the normalisation of their relations, to refrain from violence, ensure freedom of movement to United Nations observers and removeland mines. The Secretary-General Kofi Annan was requested to report to the council on the situation by 5 January 1998 concerning progress towards a peaceful solution of the dispute between the two countries. Finally, the Stabilisation Force, authorised in Resolution 1088 (1996), were required to co-operate with UNMOP.