The Security Council reaffirmed the need for a settlement between the Bosnian parties and condemned the Bosnian Serbs after they rejected a territorial settlement. Concern was expressed about the escalation of the fighting around Bihać and the safe area, and the subsequent displacement of persons. It reaffirmed previous calls to the parties to cease hostilities that could lead to a further escalation of tensions, and the need for an urgent ceasefire.