He recalled that a government session chaired by President Franjo Tudjman on 14 November 1991 discussed the need to bring order to Croatia's defence and the paramilitary units, primarily HOS.
Gregoric did not recall other paramilitary formations being discussed, but knew that a conclusion was adopted asking the Interior Ministry to urgently deal with such issues in the field.
Mercep is on trial for the unlawful arrest and torture of 52 people and the murder of 43 civilians, mainly Serbs, from the Zagreb, Kutina and Pakrac areas at the start of the war in 1991.
Greguric said he first learned about events in Pakracka Poljana from the press. He did not recall Josip Perkovic, a former assistant interior and defence minister, informing him about illegal activities taking place there. He said reports were not submitted to the government but to the president and the interior and defence ministries.
Greguric said he was in touch with the late Tudjman every day but that they never discussed that.
He did not recall Vjekoslav Vidovic, the then Supreme Court president, telling him about the killing of civilians, but said Vidovic never gave him a report on that in writing.
Greguric said he was never in contact with Mercep.
He said the primary goal of his government, between July 1991 and August 1992, was to ensure the defence of the country, which was done at the Interior Ministry. The government had to provide for everyday life, took care of numerous refugees and was active on the foreign policy front to acquaint the international community with the consequences of the military aggression on Croatia, he said.
Vladimir Seks, who was a deputy parliament speaker at the time relevant to the indictment, will testify later today.