[1] The security council noted the sustained efforts of the governments of both Indonesia and Portugal since July 1983 to find an internationally acceptable solution to the question of East Timor.

It welcomed progress made at the last round of talks on 5 May 1999 under the auspices of the Secretary-General Kofi Annan which led to a series of agreements.

Agreements between the United Nations and the Governments of Indonesia and Portugal concerning security arrangements for the referendum were also welcomed.

It stressed the importance of reporting on the outcome of the referendum on autonomy or independence, the responsibility of Indonesia to maintain peace and security in East Timor and ensuring that the United Nations could complete all tasks in the region.

[2] The council welcomed the establishment of a trust fund to allow member states to make voluntary contributions to finance the United Nations presence in East Timor.