Wilhelm II, the book you have quoted from "The Baltic Riddle", was published in 1943, ie it is a piece of wartime anti-German propaganda, and it even supports the idea of the Baltic States being incorporated into the Soviet Union.
It is true that in 1918 the German Government proposed to settle German agricultural colonists in both Estonia and Latvia, after the whole of those two provinces had come under German occupation, and the Baltic German landowners agreed to hand over one-third of their lands for that purpose.
But it is a falsehood to suggest, as the passage you quoted does, that Germany intended to make the Baltic nations "disappear". The fact is that settlement of German colonists on one-third of the land in Latvia and Estonia would not have displaced the ethnic Estonian and Latvian populations, since Estonia and Latvia were then, and still are, extremely sparsely populated countries, with plenty of room for both the native population and German colonists.
That is clearly shown by the fact that after the Second World War, huge numbers of Russians and other Soviet nationalities could settle in Estonia and Latvia without completely displacing the native populations.
Today, the population density of Estonia is 31 persons per km2, and that of Latvia almost the same at 32 persons per km2. Thus, both countries are still extremely underpopulated, compared with Germany (232 persons per km2) and Britain (267 persons per km2). In fact, they have the same population density as the Kyrgyz Republic (30 persons per km2), a country which is very mountainous and had very little inhabitable land, unlike both Estonia and Latvia which have large areas of fertile farmland suitable for colonisation.
Even Jordan, a country that consists almost entirely of desert, with very little inhabitable land, has a population density of 74 persons per km2, double that of Estonia.
Thus, the fact is that in 1918 Estonia could easily have absorbed large numbers of German agricultural colonists without any displacement of the native Estonian population whatever.
The source for the above figures on population density is:
http://data.worldbank.org/indicator/EN.POP.DNST
In 1922, when the population of Estonia was 1.107 million, Russians comprised 8.2% of that population, and ethnic Estonians 87.6%. By 1989, the population had increased to 1.566 million, of which Russians comprised a massive 30.3%, with the proportion of ethnic Estonians having fallen precipitously to 61.5%.
Today, the proportion of Russians, Ukrainians and Belarusians has fallen to 27.8%, mainly through substantial emigration, their total number having declined from 550,816 in 1989 to 365,035 today. The proportion of ethnic Estonians has risen to 69.1% today, despite a fall in absolute numbers from 963,281 in 1989 to 907,937 today.
If all the Russians, Ukrainians and Belarusians disappeared from Estonia, the total population would fall to 948,000, of which ethnic Estonians would comprise 907,000, or 95.6%. But in that case the country would be even more underpopulated than it is today, with all the detrimental effects that would have on the economy.
Between 1934 and 1959, the number of ethnic Estonians living in Estonia fell precipitously from 992,520 to 892,653. That fall of almost 100,000 persons was mainly due to the punitive deportation carried out by the Soviet Government. There is simply no way that a hypothetical settlement of large numbers of Germans in Estonia after 1918 could have had anywhere near that sort of detrimental effect on the ethnic Estonian people.
It is true that the Estonian people suffered greatly during the 20th Century, but that suffering was inflicted almost entirely by the Russian Empire and the Soviet Union and not by Germany, either during the First World War or during the Second. So, Wilhelm II, I suggest that your complaint about German plans for colonisation of Estonia are misplaced; the source of Estonia's misfortune lies elsewhere.