United Nations Security Council resolution 1038, adopted unanimously on 15 January 1996, after recalling previous resolutions on Croatia including resolutions 779 (1992), 981 (1995) and 1025 (1995), the Council authorised the United Nations Mission of Observers in Prevlaka to continue monitoring the demilitarisation in the Prevlaka peninsula area of Croatia.
The Council noted an agreement whereby presidents of Croatia and the Federal Republic of Yugoslavia (Serbia and Montenegro) concerning demilitarisation and emphasised the contribution this had made to the decrease in tension in the region.
The observers would monitor the demilitarisation in the Prevlaka peninsula for a period of three months, and the council would extend this period by a further three months upon receipt of a report by the Secretary-General. By 15 March 1996, the Secretary-General Boutros Boutros-Ghali was requested to report to the council on the situation in the region and progress made by the parties to resolve their differences and with regard to the possible extension of the mandate of the military observers. Finally, the observers and the Implementation Force established in Resolution 1031 (1995) were urged to co-operate with one another.
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