It also gained control over the Italian governorate of Montenegro, and was granted the kingship in the Independent State of Croatia, though wielding little real power within it; although it did (alongside Germany) maintain a de facto zone of influence within the borders of the NDH.

[4] Founded in the Brezovica Forest near Sisak, Croatia, its creation marked the beginning of anti-Axis resistance in occupied Yugoslavia.

[6] On 23 March 1942, Testa proclaimed that any persons withholding knowledge of the location and activities of local Partisans from Italian authorities would face "heavy punishment".

[6] In essence, such harsh actions and threats were a continuation of the "Circular 3C" policy, implemented by Italian general, Mario Roatta,[7] to quell Partisan resistance.

Testa himself claimed it was in retaliation for the deaths of 16 Italian soldiers killed by Partisans, allegedly from Podhum, at the beginning of July.

[citation needed] The village of Podhum itself was then burned down by the Italian forces, with 494 homes and buildings being destroyed and 2,000 heads of livestock seized.