English Translation

+/ - 6 - and the export proceeds will be insufficient. On the other hand, the expenses for the ever-increasing military armaments increase. Weapons and ammunition are now purchased from the German loot. Confiscations to the army service take place to the widest extent. As against 50.Oo0 Croatian workers have so far been recruited for Germany, among them against 230 skilled workers from Zenica, lack of labour is already noticeable. In spite of all this, one should guard against a too pessimistic assessment of the Croatian situation, because we still find ourselves in the period of waiting and experiments until one day things have to be stabilized somehow. The situation in Serbia has also deteriorated, and the activity of the scattered Serb troops, the Serbian gangs and the Communists has taken on a considerable scale. However, the various elements are not in agreement with each other and they seem to follow various command calls. From the German military side, only the important routes and the areas of interest to us have been kept open so far, while the country was essentially left to itself. In addition, an interesting experiment was organized in which General Nedić, who was once one of the most famous war drivers, was commissioned to form a Serbian government and a Serb army. This government was given a probation period, within which it was to create either its own authority or by force calm and order. As things stand today, the Nedić government does not seem to have proven itself, so that new measures are likely to have to be taken.