The Security Council welcomed the progress that UNTAES had made in facilitating the return of the territories to Croatia. The Basic Agreement between Croatia and the local Serbs asked for a temporary United Nations administration for 12 months and that it could be extended for another year at the request of one of the parties, which the local Serbs asked for. The Secretary-General Boutros Boutros-Ghali had requested UNTAES be extended by six months.