From: larocqu@gaul.csd.uwo.ca (JOHN LAROCQUE)
Subject: Labrador deal (was RE:SNAGG)
Organization: Computer Science Dept., Univ. of Western Ontario, London, Canada
Date: Fri, 22 Jan 1993 14:09:45 GMT

     Here is the promised information on the Labrador scam that
King pulled back in 1927. The goodies that I am printing below come
from a Newfoundland high school teacher and historian, John Greene,
who published the article in the Sept 23, 1990 issue of Catholic
New Times. This article was written with information culled from
the Newfoundland archives.

     The treaty of Paris "ceded to Newfoundland an undefined
region, known as Labrador, formerly considered to be part of
Quebec. Although Labrador would be returned to its original owner
in 1774, it was transferred back to Newfoundand again in 1809."

     In 1902, Quebec and Newfoundalnd claimed the right to licence 
a timber company at Hamilton inlet. Quebec pursued the matter
further desiring a solution to the boundary dispute. WWI postponed
any deliberation on the issue until 1920. I will quote directly
from the author.

     "The decision was rendered in 1927 and represented for
Newfoundland the biggest real estate theft in modern history.
Basing their claim on a WIDE interpretation of the word "coast"
(because Canada admitted their right to the coast), Newfoundland
argued for ownership of all land drained by the rivers that flowed
into the Atlantic Ocean. The Privy Council agreed and Newfoundland
gained 263 871 square km - an area three times the size of the
island itself. Quebec was so shocked and aggrieved that it refused
to accept the decision, a position which 63 (+) years of history
has falled to change.

     "Quebec's position has always worried local interests and
when Newfoundalnd joined Canada in 1949 a clause was inserted into
the Terms of Union guaranteeing present boundaries - a move
accepted over the vehement protests of Duplessis and several Quebec
MP's. In the 1960's, Quebec refuesed to guarantee a right of way
for Churchill Falls Hydro Electric Power, insistin, instead, on
purchasing that power at the border. When the rapidly changing
world economy of the 1970's demonstrated that Quebec had purchased
the power at bargain basement prices and was reselling it for a hug
profit, Newfoundalnd attempted to reopen the contract. Quebec's
refusal left Newfoundlanders with the feeling of having been
cheated and both the media and politicians didn't hesitate to lint
that issue with the desire for revenge on the part of Quebec.

"...With a post-Meech reconstruction of Canada under way, the terms
of the confederation agreement of 1948 can no longer serve as a
refuge for Newfoundland. Presumably an independent... Quebec could
refer the matter to the International Court at the Hague. In that
event it could be a whole new ball game, for Quebec has always
believed it could reverse the 1927 decision.

[ and I hope they do - John ]

     "This confidence is based on the bact that Newfoundland not
only won its case on a technicality but also that Canada at that
time was considered to have poorly prepared its position. Ont the
other hand, the Privy Council commended Newfoundland for the
thoroughness of its research - an event which led to the enduring
reputation for P T McGrath, Newfoundland's primary investigator.

     "There is evidence though, in the McGrath papers, that other
factors may have been at work besides Newfoundland genius. It
appears that THE KING GOVERNMENT SECRETLY CONSPIRED WITH THE
HUDSON'S BAY COMPANY TO SABOTAGE ITS OWN CASE AND ENSURE A
NEWFOUNDLAND VICTORY. This was effected by placina a secret agent
in the Hudson's Bay Company archives in Winnipeg who kept a close
watch over documentary evidence selected for the Privy Council case
by the Canadian representatives. Afterwards, the agent secretly
made all such evidence avaliable to Newfoundland.

     "Why would the Canadian government do such a thing? Apparently
Mackenzie King was extremely worrited over the political
consequences should Newfoundland lose and Quebec thereby gain such
a huge slice of land. The proglem was that o discovering a way to
compensate Ontario with an equal amount of terrtitory. As this
proved an insoluble puzzle, rumour had it that Anglophone ministers
in the cabinet HAD THREATENED A PALACE REVOLT if the province of
Quebec were to expand to that extent. Thus, the 1927 decision was
an immense relief in that IT RESTRICTED QUEBEC AND FAVOURED THE
STATUS QUO IN CANADA."

[ end of quote ]

     Your friend and mine, Clyde Kirby Wells, leader of less than
3% of the Canadian population, "stood up to Quebec" and deserves
credit for the torpedoing of the Meech Lake accord. Such anti-
Quebec sentiment also came from the mouth of one of his cabinet
ministers who proclamined "They might have us over a barrel on the
Churchill Falls but we got them by the balls on Meech Lake".

      Newfoundland, a province that only became "Canadian" less 45
years ago, was telling Quebec, one of the founding provinces of
Canada, what kind of country it would like imposed on it. Makes you
miss Peckford. At least he was a regionalist who understood that
Newfoundland should exercise powers at the provincial level, not
Ottawa. And while he wasn't a separatist, his Canada would have
been more decentralized then the one that Pierre Eliott Trudeau
imposed on it.

      This region has had more than its say in Canada. For far too
long they have had unlimited access to the wealth of Central Canada
by way of federal provincial grants, and outside the (once)
bountiful fisheries, there was UI for a good part of the year and
whatever money was poured into the latest multi-billion dollar
port-barrel project from Trudeau and Mulroney. Hibernia will be to
Newfoundland what the Tar Sands were to Alberta. Oil so expensive
to produce that it would be better to leave it in the ground. And
despite all of this - the provice is still very much poor. Makes
you wonder if Confederation was worth it for them.


     I wish them luck, but the realist in me tells me that this
project, like all the rest, will fail and Newfoundland will remain
poor and desolate. When Quebec goes (and it will, in time)
Newfoundland and the rest of Atlantic Canada will be up the creek.
Atlantic Canada's Bangladesh to Quebec's Pakistan and Ontario's
India. Not very promising, but inevitable, as money runs out of the
federal coffers and no one wants to pay any more.      Here is the promised information on the Labrador scam that
King pulled back in 1927. The goodies that I am printing below come
from a Newfoundland high school teacher and historian, John Greene,
who published the article in the Sept 23, 1990 issue of Catholic
New Times. This article was written with information culled from
the Newfoundland archives.

     The treaty of Paris "ceded to Newfoundland an undefined
region, known as Labrador, formerly considered to be part of
Quebec. Although Labrador would be returned to its original owner
in 1774, it was transferred back to Newfoundand again in 1809."

     In 1902, Quebec and Newfoundalnd claimed the right to licence 
a timber company at Hamilton inlet. Quebec pursued the matter
further desiring a solution to the boundary dispute. WWI postponed
any deliberation on the issue until 1920. I will quote directly
from the author.

     "The decision was rendered in 1927 and represented for
Newfoundland the biggest real estate theft in modern history.
Basing their claim on a WIDE interpretation of the word "coast"
(because Canada admitted their right to the coast), Newfoundland
argued for ownership of all land drained by the rivers that flowed
into the Atlantic Ocean. The Privy Council agreed and Newfoundland
gained 263 871 square km - an area three times the size of the
island itself. Quebec was so shocked and aggrieved that it refused
to accept the decision, a position which 63 (+) years of history
has falled to change.

     "Quebec's position has always worried local interests and
when Newfoundalnd joined Canada in 1949 a clause was inserted into
the Terms of Union guaranteeing present boundaries - a move
accepted over the vehement protests of Duplessis and several Quebec
MP's. In the 1960's, Quebec refuesed to guarantee a right of way
for Churchill Falls Hydro Electric Power, insistin, instead, on
purchasing that power at the border. When the rapidly changing
world economy of the 1970's demonstrated that Quebec had purchased
the power at bargain basement prices and was reselling it for a hug
profit, Newfoundalnd attempted to reopen the contract. Quebec's
refusal left Newfoundlanders with the feeling of having been
cheated and both the media and politicians didn't hesitate to lint
that issue with the desire for revenge on the part of Quebec.

"...With a post-Meech reconstruction of Canada under way, the terms
of the confederation agreement of 1948 can no longer serve as a
refuge for Newfoundland. Presumably an independent... Quebec could
refer the matter to the International Court at the Hague. In that
event it could be a whole new ball game, for Quebec has always
believed it could reverse the 1927 decision.

[ and I hope they do - John ]

     "This confidence is based on the bact that Newfoundland not
only won its case on a technicality but also that Canada at that
time was considered to have poorly prepared its position. Ont the
other hand, the Privy Council commended Newfoundland for the
thoroughness of its research - an event which led to the enduring
reputation for P T McGrath, Newfoundland's primary investigator.

     "There is evidence though, in the McGrath papers, that other
factors may have been at work besides Newfoundland genius. It
appears that THE KING GOVERNMENT SECRETLY CONSPIRED WITH THE
HUDSON'S BAY COMPANY TO SABOTAGE ITS OWN CASE AND ENSURE A
NEWFOUNDLAND VICTORY. This was effected by placina a secret agent
in the Hudson's Bay Company archives in Winnipeg who kept a close
watch over documentary evidence selected for the Privy Council case
by the Canadian representatives. Afterwards, the agent secretly
made all such evidence avaliable to Newfoundland.

     "Why would the Canadian government do such a thing? Apparently
Mackenzie King was extremely worrited over the political
consequences should Newfoundland lose and Quebec thereby gain such
a huge slice of land. The proglem was that o discovering a way to
compensate Ontario with an equal amount of terrtitory. As this
proved an insoluble puzzle, rumour had it that Anglophone ministers
in the cabinet HAD THREATENED A PALACE REVOLT if the province of
Quebec were to expand to that extent. Thus, the 1927 decision was
an immense relief in that IT RESTRICTED QUEBEC AND FAVOURED THE
STATUS QUO IN CANADA."

[ end of quote ]

     Your friend and mine, Clyde Kirby Wells, leader of less than
3% of the Canadian population, "stood up to Quebec" and deserves
credit for the torpedoing of the Meech Lake accord. Such anti-
Quebec sentiment also came from the mouth of one of his cabinet
ministers who proclamined "They might have us over a barrel on the
Churchill Falls but we got them by the balls on Meech Lake".

      Newfoundland, a province that only became "Canadian" less 45
years ago, was telling Quebec, one of the founding provinces of
Canada, what kind of country it would like imposed on it. Makes you
miss Peckford. At least he was a regionalist who understood that
Newfoundland should exercise powers at the provincial level, not
Ottawa. And while he wasn't a separatist, his Canada would have
been more decentralized then the one that Pierre Eliott Trudeau
imposed on it.

      This region has had more than its say in Canada. For far too
long they have had unlimited access to the wealth of Central Canada
by way of federal provincial grants, and outside the (once)
bountiful fisheries, there was UI for a good part of the year and
whatever money was poured into the latest multi-billion dollar
port-barrel project from Trudeau and Mulroney. Hibernia will be to
Newfoundland what the Tar Sands were to Alberta. Oil so expensive
to produce that it would be better to leave it in the ground. And
despite all of this - the provice is still very much poor. Makes
you wonder if Confederation was worth it for them.


     I wish them luck, but the realist in me tells me that this
project, like all the rest, will fail and Newfoundland will remain
poor and desolate. When Quebec goes (and it will, in time)
Newfoundland and the rest of Atlantic Canada will be up the creek.
Atlantic Canada's Bangladesh to Quebec's Pakistan and Ontario's
India. Not very promising, but inevitable, as money runs out of the
-- 
***FEAR*AND*LOATHING**FEAR*AND*LOATHING**FEAR*AND*LOATHING**FEAR*AND*LOATHING**
**  John LaRocque         **   "If you're the new messiah.. I'm going to be  **
**  marshall.law@uwo.ca   **   the one to drive in the nails"  MARSHALL LAW  **
***FEAR*AND*LOATHING**FEAR*AND*LOATHING**FEAR*AND*LOATHING**FEAR*AND*LOATHING**
Newsgroups: can.politics,soc.culture.canada