1940: Newfoundland

The agreement between the British Government and the Government of the United States permitting the United States to establish a naval and air base on the southern coast of Newfoundland as part of a general arrangement involving the transfer of fifty over-age destroyers to Britain, was the island's chief contribution to world news in 1940. The agreement was received with satisfaction throughout the colony, as was the announcement, in November 1940, that all details had been settled regarding the base.

In August, prior to the announcement of the British-American agreement, it had been announced that Canadian and Newfoundland officials had reached 'general agreement on all points' concerning the defense of Newfoundland with special regard to the island's position as the 'first line of defense of the North American hemisphere.' It was understood that Canada would take full responsibility for the defense of the Crown Colony. Canadian land and air forces had already been on Newfoundland soil for some months.

On Aug. 27, it was announced that the first contingent of Newfoundland troops, numbering several thousand, had reached a west coast British port to participate in the defense of the mother country.

As a contribution to the mother country's war effort, Newfoundland cut its dependence on the British Imperial Treasury during the year. Taxes were drastically increased with a view to bringing the annual revenue to $13,525,116, a record figure, and the budget provided a cut in expenses to an anticipated $15,449,965 as against $16,572,629 in the fiscal year 1939-1940. This left a deficit of only $1,924,849, the lowest for many years.

Sir Richard Anderson Squires, Prime Minister of Newfoundland from 1919 to 1923 and from 1928 to 1932, died in St. Johns on March 26, after an illness of six months.