The Security Council,

Welcoming the report of the Secretary-General on the United Nations operation in Cyprus of 5 June 1997 (S/1997/437 and Corr.1 and Add.1),

Welcoming also the letter of 20 June 1997 to the President of the Security Council from the Secretary-General on his mission of good offices in Cyprus (S/1997/480),

Noting that the Government of Cyprus has agreed that in view of the prevailing conditions in the island it is necessary to keep the United Nations Peacekeeping Force in Cyprus (UNFICYP) beyond 30 June 1997,

Reaffirming its earlier relevant resolutions on Cyprus, and in particular resolutions 186 (1964) of 4 March 1964, 939 (1994) of 29 July 1994 and 1092 (1996) of 23 December 1996,

Noting with concern that tensions along the ceasefire lines remain high despite the decrease in the number of serious incidents over the last six months,

Reiterating its concern that negotiations on a final political solution have been at an impasse for too long,

1. Decides to extend the mandate of UNFICYP for a further period ending on 31 December 1997;

2. Reminds both sides of their obligation to prevent any violence directed against UNFICYP personnel, to cooperate fully with UNFICYP and to ensure its complete freedom of movement;

3. Underlines the importance of agreement by both sides to the reciprocal measures for the reduction of tension along the ceasefire lines proposed by UNFICYP as set forth in its resolution 1092 (1996), deeply regrets the fact that, in spite of the efforts of UNFICYP, neither side has so far accepted such measures as a package, and reiterates its call on both sides to do so without further delay or preconditions;

4. Calls upon the military authorities on both sides to refrain from any action, particularly in the vicinity of the buffer zone, which would exacerbate tensions;

5. Reiterates grave concern at the continuing excessive levels of military forces and armaments in the Republic of Cyprus and the rate at which they are being expanded, upgraded and modernized, including by the introduction of sophisticated weaponry, and the lack of progress towards and significant reduction in the number of foreign troops in the Republic of Cyprus, which threaten to raise tensions both on the island and in the region and complicate efforts to negotiate an overall political settlement;

6. Calls again upon all concerned to commit themselves to a reduction in defence spending and a reduction in the number of foreign troops in the Republic of Cyprus to help restore confidence between the parties and as a first step towards the withdrawal of non-Cypriot forces as described in the set of ideas (S/24472, annex), stresses the importance of eventual demilitarization of the Republic of Cyprus as an objective in the context of an overall comprehensive settlement, and calls upon the Secretary-General to promote efforts in this direction;

7. Reiterates that the status quo is unacceptable, and stresses its support for the Secretary-General's mission of good offices and the importance of the concerted efforts to work with the Secretary-General towards an overall comprehensive settlement;

8. Welcomes the decision of the Secretary-General to launch a sustained process of direct negotiations between the leaders of the two Cypriot communities with the aim of securing such a settlement;

9. Calls upon those leaders to commit themselves to this process of negotiations, including participation in the first session of such negotiations to be held 9-13 July 1997, urges them to cooperate actively and constructively with the Secretary-General and his Special Adviser on Cyprus, Mr. Diego Cordovez, to that end, and stresses that full support of all concerned is necessary for this process to produce results;

10. Further calls upon the parties to create a climate for reconciliation and genuine mutual confidence on both sides, and to avoid any actions which might increase tension;

11. Reaffirms its position that a Cyprus settlement must be based on a State of Cyprus with a single sovereignty and international personality and a single citizenship, with its independence and territorial integrity safeguarded, and comprising two politically equal communities as described in the relevant Security Council resolutions, in a bi-communal and bi-zonal federation, and that such a settlement must exclude union in whole or in part with any other country or any form of partition or secession;

12. Welcomes the continuous efforts by UNFICYP to implement its humanitarian mandate in respect of Greek Cypriots and Maronites living in the northern part of the island, and Turkish Cypriots living in the southern part, and regrets that there has been no further progress on the implementation of recommendations arising out of the humanitarian review undertaken by UNFICYP in 1995;

13. Welcomes the efforts of the United Nations and others concerned to promote the holding of bi-communal events so as to build trust and mutual respect between the two communities, urges that these efforts be continued, acknowledges the recent cooperation from all concerned on both sides to that end, and strongly encourages them to take further steps to facilitate such bi-communal events and to ensure that they take place in conditions of safety and security;

14. Reaffirms that the decision of the European Union concerning the opening of accession negotiations with Cyprus is an important development that should facilitate an overall settlement;

15. Requests the Secretary-General to keep under review the structure and strength of UNFICYP with a view to its possible restructuring, and to present any new considerations he may have in this regard;

16. Requests the Secretary-General to submit a report by 10 December 1997 on the implementation of this resolution;

17. Decides to remain seized of the matter.