At the meeting the RSK insisted on the withdrawal of the HV from western Slavonia and the gradual implementation of a ceasefire, followed by economic cooperation before a political settlement was discussed. The Croatian delegation did not intend to negotiate, but to prepare diplomatically for a military resolution of the war. Stoltenberg proposed a seven-point compromise, including negotiations based on the Z-4 Plan, beginning on 10 August. The proposal was initially accepted by Babić, who then expressed reservations about the Z-4 Plan as a political settlement when he was asked to publicly declare support for the Stoltenberg proposal (so the Novaković delegation would follow his lead). Pašalić then asked Novaković to accept Croatia's seven demands, including immediate replacement of the RSK with a Croatian civilian government. Novaković refused Pašalić's proposal, indicating that he accepted the Stoltenberg proposal instead, and Pašalić declared that the RSK had declined a Croatian offer to negotiate. Croatia did not consider Babić powerful enough to secure support for an initiative from Martić, and thus unable to commit the RSK to an agreement. This view was supported by Babić himself, who told Galbraith during their 2 August meeting in Belgrade that Martić would only obey Milošević. On 4 August Croatia launched Operation Storm against the RSK and, according to Galbraith, effectively terminated the Z-4 Plan and its associated political process.