PURCHASE OF LABRADOR

Wanganui Chronicle, Volume 74, Issue 139, 15 June 1931, Page 11

PURCHASE OF LABRADOR

LONG-STANDING ISSUE The question of the purchase of I.abrador by Canada has been before the Canadian Government iu different forms for some years past. Matters camo to a head in March, 1927, when the Judicial Committee of tho Privy Council delivered an opinion in favour of Newfoundland in a boundary disagreement. The dispute centred round the bleak tablelands of tho Labrador Peninsula, which were considered to be of little importance until the demand for paper directed attention to the largo quantities of timber to be found there. The Canadian Government held that the depth of tho strip of territory claimed by Newfoundland should bo limited to an area sufficient to serve the needs of the fishing population, but 1’ • Privy Council decided otherwise and had to go back to a Commission of 1763 for its authcrity. Mr. Cahan, a Montreal Conservative, promptly suggested that Canada should purchase the territory which had always been regarded as Canadian, but Ilie Government stated that it would await the arrival of the Privy Council judgment before taking any step. Grants of land, timber, mineral, and water rights in the territory to tho Quebec Government were null and void under the award, and considerable dissatisfaction was felt, one member proposing that because of the award tho system of appeals to the Privy Council should be abolished. When tho judgment arrived, however, there was still doubt as to the meaning of the definition of portion of the new boundary and action was deferred. Bright Hopes The judgment in favour of Newfoundland raised hopes of greater prosperity for the 200,000 Newfoundlanders,, especially as the Newfoundland Power, and Paper Company, with its capital of £4.000,000, half of which had been provided by the Newfoundland Government and half by the British Government, proposed establishment of a plant at Cornerbrook to develop a big trade. The venture, however, proved too expensive, and the parent firm of Armstrong, Whitworth decided to cut their losses and sell out to the big American company, the International Paper Company of New York. This concern demanded far-reaching concessions in both Newfoundland and Labrador. Confederation with Newfoundland was before the Canadian Parliament early in 1928, and in March it was reported that negotiations were taking place for the purchase of Labrador by the United States. This met with a denial, but reports were so persistent that when he assumed office iu November, 1928, the Prime Minister of Newfoundland, Sir Richard Squires, felt obliged to make a statement on the subject. Much of the agitation for sale of Eastern Labrador has been the result of tho efforts of people in Canada who' held pulpwood areas to dispose of them; before tho Government cancelled licenses for non-compliance conditions under Tshich were granted. In 1 IL’5 342 stjuan' miles <>f 22,684 d< > 11;, i s a pri'.lll,' [i;i)ids. ' -: 1 : H-:" I . _■ J . d■'; i:i: is i, ■ i