He told the gathered that "Croatia is not a hostage of General Ante Gotovina, as the incumbent government is claiming".
Pasalic, who used to be a senior official of the ruling Croatian Democratic Union (HDZ) but was ousted from it when Ivo Sanader came to its helm, called on HDZ members to vote for him.
Pasalic again accused the current President Stjepan Mesic of high treason.
Present at the Zadar rally were some local HDZ members as well as Davor Aras, the city council's chairman who was recently ousted from the HDZ after he had taken part in a rally at which the insignia of the Nazi-supported Ustasha regime from the Second World War were displayed.