Before you asked me to substantiate, I sent a mail to the person who sent me a copy of that contract... some 13 years ago. I hope I'll get my hands on it again and if I do, I'll be more than happy to post it on ET.

GERMANY AND CROATIA: RESURRECTION OF THE "PURE" CROATIAN NATION STATE

Reliable intelligence sources claimed in 1990, that in 1988 Mr. Tudjman paid a secret visit to the Federal Republic of Germany (FRG) and met with Chancellor Kohl and other senior Government Ministers. It was said that the aim of the visit was to formulate a joint policy to break-up Yugoslavia, leading to the re-creation of a new independent State of Croatia with international borders in the form originally set up by the German Chancellor, Adolf Hitler, in 1941. At a secret meeting in Bonn, the German Government pledged its political, financial, and covert military support for Croatia's secession from the Federal Republic of Yugoslavia the intelligence source claimed such an action fitted neatly into Germany's strategic objectives in respect of the Balkans, which included bringing Roman Catholic Croatia and Slovenia within the German economic zone, gaining direct access to the Adriatic and Mediterranean, and securing a favored nation status with the oil and gas producing Arab states. The latter to be enhanced by recognizing Bosnia-Herzegovina as a predominantly Muslim nation state, an entrée to modern Europe for Islam along a traditional path from Turkey via Albania and the Serbian areas of Kosovo and the Sandzak occupied by Muslim majorities.

In the period leading up to Croatian secession there were signs that indicated the re-emergence of the historical axis previously seen in the days of the Holy Roman Empire, the Austro-Hungarian Empire and the Third Reich. There is no "conspiracy theory" in this: merely the reappearance of a geopolitical pattern.

It was a $2 billion interest free loan for 10 years. Not a $10 billion loan for 20 years.

Evidence of the axis in action occurred on October 4, 1990, when, even though still a part of Yugoslavia, Croatia was covertly provided with a US$2-Billion interest free loan, repayable in full after 10 years and a day. The loan was provided by the Ordre Souverain of Militaire de Saint-Jean de Jerusalem, Chevaliers-Hospitaliers de Malte. This ancient Order of Roman Catholic Knights of Saint John of Jerusalem was based in Malta during the Christian Crusades against the Islamic forces in Jerusalem. Today, the headquarters building of the Knights of Saint John of Jerusalem is located at 61 Via Nizza in Rome from where these modern Catholic Knights wield the influential power of high finance. There is a known strong link between the headquarters in Rome and Germany, with reports indicating the organization is even directed by German nationals. Ostensibly the loan was to fund priority civil engineering projects with a statement of conditions that the loan should not be used to fund military projects. However, well-placed sources said the loan freed-up other finances earmarked for civil projects, thus enabling the money to be redirected to equip armaments factories and to purchase weapons. The same source said that despite the "no funding of military projects' condition, a significant percentage of the US$2-billion loan was misused on armaments. Signatories to the contract on behalf of the Croats were Vice President Dr. Mate Babic and Madamme Maksa Zeleu Mirjana, Counseler at the Ministry of Finance authorized to act on behalf of the Minister of Finance.

This US$2-Billion loan has never appeared in any Croatian Government financial statement. When Waterman Associates, on behalf of the Croatian Embassy in Washington D.C., sent out a press release in 1994 purporting to show a very low amount of foreign debt/loan, I challenged their figures, mentioning the US$2-Billion loan from the Knights of Saint John of Jerusalem. The embassy said they had no knowledge of the loan, so I offered to send them a complete copy of the "Object du Financement". My offer was declined as they said such a document did not exist.

It should be remembered, that this loan was made to Croatia prior to secession. At time when Croatia was still a part of the Federal Republic of Yugoslavia and obliged under the Federal Constitution to disclose any such transactions.

And German arming of Croatia began as early as 1989.

The reunification of the two Germanies and modernization of the East German armed forces, made available a substantial pool of weapons and military instructors for arming and training of a Croatian militia. During late 1989, and throughout 1990, arms flowed from Germany to Croatia to equip militia units. After HDZ party (Croatian Democratic Union) won control of Sabor in the May 30, 1990, multi-party elections, the newly elected President Tudjman formed a National Guard Corps (ZNG). In effect, the ZNG was not a "national" force in the accepted meaning of the word, rather it was the ultra-nationalist, neo-Ustashi military wing of Tudjman's HDZ political party, in the same way that the "Brownshirts" of the 1930's acted as the vanguard enforcement wing of Hitler's National Party.

It has been asked why did Yugoslav Government in Belgrade not prevent the formation of the ZNG. The answer is quite simple. At the time, all the senior positions in the federal internal security organizations, and many senior posts in the General Staff of the JNA, were held by the Croats. For instance, Croatia's first Minister of Defence, Martin Spegelj, was a senior general in the Yugoslav Armed Forces at the time of secession.

With the full support of Germany, and against the wishes of other members of the EC, the HDZ ruling party declared Croatian sovereignty in the Sabor on December 22, 1990, despite strong objections raised by the opposition parties.

Shortly after the declaration, President Tujman introduced a new Croatian constitution which defined Croatia as the national state of the Croatian people and others, pointedly relegating the Serbs, Jews, Gypsies and Muslims to second class status. This was an exact repeat of what had happened in 1941 when nazi Germany invaded Yugoslavia and set up Croatia as the national state of the Croatian people and others. After the HDZ dominated Government passed the new constitution, discrimination against the Serbs began immediately. Serbs lost government jobs in the civil service, police, local authorities etc...they were evicted for their homes, many lost the ownership of their own businesses, and Serb newspapers were closed down etc. A special property tax applicable only to Serbs was introduced, and Croatian militia openly looted and closed down shops selling expensive products such as jewelry. These measures clearly indicated to the Serbs living within the administrative borders of Croatia that they must leave the land where they had lived for three centuries, or face the consequences of staying.

One of the most sinister changes was that every identified Serb in Croatia was issued with a new identity card which incorporated the figure 3 as the eight figure in the identity number. The figure 3 thus became the Croatian equivalent for Serbs as nazi Germany's Star of David was for all Jews residing in countries dominated by Germany. When the time came for ethnic cleansing to start, the figure 3 would ensure no Serb would escape.