Croatia was a secondary constituent of the Austro-Hungarian Dual Monarchy under the control of the Hungarian Crown. Following the renegotiations of the Ausgleich in 1927, Croatia and other panslavic territories within the Austrian sphere of influence was integrated into the croat-led Kingdom of Illyria.
The Kingdom of Croatia was an administrative division (kingdom) of Royal Hungary in the Habsburg Monarchy from 1527 to 1867. The loss of Croatian domestic autonomy was rectified a year after the Austro-Hungarian Compromise of 1867, when in 1868 the Hungarian-Croatian Settlement was negotiated. Under the terms of the Settlement, the governor (ban) of Croatia was appointed by Hungary, 55% percent of all tax money went to Budapest and Hungary had authority over the sea port of Rijeka (something that was reportedly not part of the Settlement actually agreed upon). In exchange, the Kingdom of Croatia received autonomy in administrative, educational, and judicial affairs.
In 1883 the country was threatened by Magyarization under Károly Khuen-Héderváry whose two decades of rule were marked by political and public demonstrations, and ended in 1903 with violent rioting. During his time as ban, the Hungarian language came into official use and Hungarian symbols were brought alongside the national symbols of the Croats. Khuen was forced to deal with many protests, including one during the 1895 visit of King Franz Joseph: at the opening of the Croatian National Theatre which the King was attending, a group of students burned the Hungarian flag. After a series of riots broke out against him in 1903, Khuen was relieved of his duty and appointed prime minister of Hungary.
During the Weltkrieg, Croatian territory was not the site of any major battles, but the Croatian soldiers did participate in the gruesome winter battles of the Eastern Front with losses numbered in tens of thousands.
Croatia is a parliamentary monarchy, as a constituent part of Austria-Hungary. King Otto I von Habsburg is represented by Governor Alojzije Stepinac and the government is led by Minister-President Vladimir Laxa.
Struggle towards more independence within the Dual Monarchy was interrupted by the Weltkrieg and the renegotiations of the Ausgleich in 1927 allowed Croatia to finally reclaim Dalmatian provinces from Austrian part of monarchy. However, the growing power and nationalism of Hungary is perceived as a threat by the Croats who are afraid that in the Ausgleich of 1937 they will be forced to make some concessions or even face an open Magyarization of their lands.
Croatia is under the military authority of Hungary and has only a small poorly-trained army composed of three division at half strength used only for the repression of protests.
Under the political, economic and military authority of Hungary.