The article on Yugoslavia caught my eye (probably because I just finished reading “The Forgotten 500”) and I did some searching. I can’t find any record of the Italians turning over Zara (Zadar) to Yugoslavia. In fact I did find mention that the Itailians had 9,000 troops stationed there to help the Nazis take it over in ‘41 so I’m betting this deal did not go through.
Forgot to mention that Zara is an island about halfway down the Yugoslavia coast around the same parallel as Novegrad.