United Nations Security Council resolution 981, adopted unanimously on 31 March 1995, after reaffirming all resolutions on the situation in the former Yugoslavia, the council established the United Nations Confidence Restoration Operation in Croatia (UNCRO) for a period terminating 30 November 1995.
The security council wanted a negotiated solution to the conflicts in former Yugoslavia. One such conflict was in Croatia with the Serbs in that country. Important parts of the United Nations peace plan for Croatia still needed to be implemented, including demobilisation in the Serb areas, the return of all refugees and the establishment of a police force, in addition to provisions in resolutions 871 (1993) and 947 (1994).