The Government of Bosnia and Herzegovina had accepted the Contact Group peace plan and the parties in the country were observing a ceasefire agreement. The Council was encouraged by UNPROFOR's efforts to assist in the implementation of the Washington agreements. The importance of the city of Sarajevo as the capital of Bosnia and Herzegovina and as a multicultural, multiethnic, and religious centre was reiterated, and that the agreement on demilitarisation of the city would have a positive effect.