"The Security Council notes that the implementation of the Basic Agreement on the Region of Eastern Slavonia, Baranja and Western Sirmium (S/1995/951, annex), signed on 12 November 1995 (the Basic Agreement), is proceeding according to the timetable established by this Agreement. In particular it notes with appreciation that the demilitarization proceeded smoothly and was completed on 20 June 1996. It expresses its satisfaction at the cooperation that both parties have shown in this respect. It calls upon both sides to refrain from any action that might raise tension and to continue to cooperate closely with UNTAES on all aspects of the Basic Agreement to maintain peace and security in the Region. It expresses its readiness to consider favourably the extension of the mandate of the United Nations military observers in UNTAES as recommended in the report.