The security council welcomed the calm and stable situation on the Prevlaka peninsula. It noted that the presence of UNMOP contributed greatly to maintaining conditions conducive to a settlement of the dispute and welcomed that Croatia and the Federal Republic of Yugoslavia (Serbia and Montenegro) were making progress in the normalisation of their relations.
Extending UNMOP's mandate for a final time, Secretary-General Kofi Annan was asked to make preparations for its termination including a reduction in its size and adjusting its activities.[2] It reiterated calls on 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. Secretary-General Kofi Annan was requested to report to the council on the completion of UNMOP's mandate, which would be shortened upon request from the parties.[3]
Finally, both parties were urged to intensify efforts towards a negotiated settlement of the Prevlaka dispute in accordance with their 1996 Agreement of Normalization of Relations.[4]
