Page "Republic of Serbian Krajina" Paragraph 20
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Babić's administration announced the creation of a Serbian Autonomous Oblast of Krajina ( or SAO Krajina ) on 21 December 1990.
On 16 March 1991 another referendum was held which asked " Are you in favour of the SAO Krajina joining the Republic of Serbia and staying in Yugoslavia with Serbia, Montenegro and others who wish to preserve Yugoslavia ?".
With 99. 8 % voting in favour, the referendum was approved and the Krajina assembly declared that " the territory of the SAO Krajina is a constitutive part of the unified state territory of the Republic of Serbia ".
On 1 April 1991, it declared that it would secede from Croatia.
Other Serb-dominated communities in eastern Croatia announced that they would also join SAO Krajina and ceased paying taxes to the Zagreb government, and began implementing its own currency system, army regiments, and postal service.
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