Both Croatia and the Federal Republic of Yugoslavia (Serbia and Montenegro) were urged to fully implement an agreement on the normalisation of their relations, cease violations of the demilitarisation regime, reduce tension and to ensure freedom of movement to United Nations observers.[2] The Council welcomed the resumption of discussions between the two parties.[2] Both countries were called upon to implement confidence-building measures from Resolution 1252 and to report on the progress of their bilateral negotiations at least twice a month.