Prepare Croquette Dough. Refrigerate 2 hours.
Sauté onion, garlic, green pepper, and red pepper in 1/4 cup plus 1 tablespoon oil in a large heavy skillet 15 minutes. Stir in tomato paste, bay leaves, 1 teaspoon salt, and sugar. Cover and simmer 15 minutes over low heat. Add crab meat; cover and simmer an additional 10 minutes. Remove from heat. Transfer mixture to a medium mixing bowl. Remove and discard bay leaves. Cover and refrigerate 2 hours.
Shape Croquette Dough into 36 two-inch balls. Press each ball into a 4-inch circle. Place 1 tablespoon chilled crab meat mixture in center of each circle. Fold dough around crab meat mixture to form boat-shaped croquette, sealing edges.
Combine eggs, milk, remaining salt, and pepper in a large mixing bowl; beat well.
Combine cracker crumbs and flour in a large mixing bowl; stir well. Dip each croquette in egg mixture; dredge in cracker crumb mixture. Repeat dipping and dredging procedure to heavily coat croquettes. Cover and refrigerate 2 hours.
Fry croquettes, a few at a time, in deep hot oil (375°) until golden brown. Drain well. Serve hot.