The Security Council welcomed the generally calm and stable situation on the Prevlaka peninsula but remained concerned at violations of the demilitarisation regime and limitations on the freedom of movement of United Nations observers. It welcomed the opening of the crossing points between Croatia and Montenegro facilitating civilian and commercial traffic without security incidents that represented a significant confidence-building measure between the two countries. There was still concern at the lack of progress towards a settlement of the disputed Prevlaka peninsula issue and a demining programme.