Document Information

Date: 1948-12-11
By: Canada, Newfoundland
Citation: Terms of Union of Newfoundland with Canada, Newfoundland and Canada, 11 December 1948 (entered into force 23 March 1949) [Newfoundland Act (UK)].
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MEMORANDUM OF AGREEMENT ENTERED INTO ON THE
ELEVENTH DAY OF DECEMBER, 1948, BETWEEN
CANADA AND NEWFOUNDLAND.
WHEREAS a delegation appointed from its members
by the National Convention of Newfoundland, a body
elected by the people of Newfoundland, consulted in
1947 with the Government of Canada to ascertain what
fair and equitable basis might exist for the union of
Newfoundland with Canada;
WHEREAS, following discussions with the delegation,
the Government of Canada sent to His Excellency
the Governor of Newfoundland for submission to
the National Convention a statement of terms which
the Government of Canada would be prepared to
recommend to the Parliament of Canada as a fair and
equitable b_asis for union, should the people of
Newfoundland desire to enter into confederation;
WHEREAS the proposed terms were debated in
the National Convention in Newfoundland and were
before the people of Newfoundland when, by a majority
at a referendum held on the twenty-second day of July,
1948, they expressed their desire to enter into confederation
with Canada;
WHEREAS the Governments of the United
Kingdom, Canada and Newfoundland agreed after the
referendum that representatives of Canada and Newfoundland
should meet and settle the final terms and
arrangements for the union of Newfoundland with
Canada;
AND WHEREAS authorized representatives of
Canada and authorized representatives of Newfoundland
have settled the terms hereinafter set forth as
the Terms of Union of Newfoundland with Canada;
It is therefore agreed as follows:

TERMS OF UNION
UNION
1. On, from, and after the coming into force of
these Terms (hereinafter referred to as the date of
Union), Newfoundland shall form part of Canada and
shall be a province thereof to be called and known as
the Province of Newfoundland.
2. The Province of Newfoundland shall comprise
the same territory as at the date of Union, that is to say,
the island of Newfoundland and the islands adjacent
thereto, the Coast of Labrador as delimited in the report
delivered by the Judicial Committee of His Majesty’s
Privy Council on the first day of March, 1927, and
approved by His Majesty in His Privy Council on the
twenty-second day of March, 1927, and the islands
adjacent to the said Coast of Labrador.
APPLICATION OF THE BRITISH NORTH
AMERICA ACTS
3. The British North America Acts, 1867 to 1946,
shall apply to the Province of Newfoundland in the
same way and to the like extent as they apply to the
provinces heretofore comprised in Canada, as if the
Province of Newfoundland had been one of the
provinces originally united, except insofar as varied
by these Terms and except such provisions as are in
terms made or by reasonable intendment may be held
to be specially applicable to or only to affect one or
more and not all of the provinces originally united.
REPRESENTATION IN PARLIAMENT
4. The Province of Newfoundland shall be entitled
to be represented in the Senate by six members, and
in the House of Commons by seven members out of a
total membership of two hundred and sixty-two.
5. Representation in the Senate and in the House
of Commons shall from time to time be altered or
readjusted in accordance with the British North
America Acts, 1867 to 1946.
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6. (1) Until the Parliament of Canada otherwise
provides, the Province of Newfoundland shall for the
purposes of the election of members to serve in the
House of Commons, be divided into the electoral
divisions named and delimited in the Schedule to these
Terms, and each such division shall be entitled to
return one member.
(2) For the first election of members to serve ·in
the House of Commons, if held otherwise than as part
of a general election, the Governor General in Council
may cause writs to be issued and may fix the day upon
which the polls shall be held, and, subject to the foregoing,
the laws of Canada relating to by-elections shall
apply to an election held pursuant to any writ issued
under this Term.
(3) The Chief Electoral Officer shall have
authority to adapt the provisions of The Dominion
Elections Act, 1938, to conditions existing in the Province
of Newfoundland so as to conduct effectually the
first election of members to serve in the House of
Commons.
PROVINCIAL CONSTITUTION
7. The Constitution of Newfoundland as it existed
immediately prior to the sixteenth day of February,
1934, is revived at the date of Union and shall, subject
to these Terms and the British North America Acts,
1867 to 1946, continue as the Constitution of the Province
of Newfoundland from and after the date of Union I
until altered under the authority of the said Acts.
Executive
8. ( 1) For the Province of Newfoundland there
shall be an officer styled the Lieutenant-Governor,
appointed by the Governor General in Council by
instrument under the Great Seal of Canada.
(2) Pending the first appointment of a LieutenantGovernor
for the Province of Newfoundland and the
assumption of his duties as such, the Chief Justice, or if
the office of Chief Justice is vacant, the senior judge,
of the Supreme Court of Newfoundland, shall execute
the office and functions of Lieutenant-Governor under
his oath of office as such Chief Justice or senior judge.

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9. The Constitution of the Executive Authority of
Newfoundland as it existed immediately prior to the
sixteenth day of February, 1934, shall, subject to these
Terms and the British North America Acts, 1867 to
1946 continue as the Constitution of the Executive
Auth’o rity of the Province of Newfoundland from and
after the date of Union, until altered under the
authority of the said Acts.
10. The Lieutenant-Governor in Council shall as
soon as may be after the date of Union adopt and
provide a Great Seal of the Province of Newfoundland
and may from time to time change such seal.
11. All powers, authorities, and functions that
under any statute were at or immediately prior to the
date of Union vested in or exercisable by the Governor
of Newfoundland, individually, or in Council, or in
Commission,
(a) as far as they are capable of being exercised
after the date of Union in relation to the
Government of Canada, shall be vested in and
shall or may be exercised by the Governor
General, with the advice, or with the advice
and consent, or in conjunction with, the King’s
Privy Council for Canada or any member or
members thereof, or by the Governor General
individually, as the case requires, subject
never theless to be abolished or altered by the
Parliament of Canada under the authority of
the Brit ish North America Acts, 1867 to 1946;
and
(b) as far as they are capable of being exercised
after the date of Union in relation to the
Government of the Province of Newfoundland
shall be vested in and shall or may be
exerc’ ised by the Lieutenant-Governor of the
Province of Newfoundland, with the advice,
or with the advice and consent, or in conjunction
with, the Executive Council of the Province
of Newfoundland or any member or
members thereof, or by the LieutenantGovernor
individually, as the case requires,
subject nevertheless to be abolished or altered
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by the Legislature of the Province of
Newfoundland under the authority of the
British North America Acts, 1867 to 1946.
12. Until the Parliament of Canada otherwise
provides, the powers, authorities, and functions vested
in or imposed on any member of the Commission of
Government of Newfoundland, as such member or as a
Commissioner charged with the administration of a
Department of the Government of Newfoundland, at
or immediately prior to the date of Union in relation
to matters other than those coming within the classes
of subjects by the British North America Acts, 1867 to
1946, assigned exclusively to the Legislature of a province,
shall in the Province of Newfoundland be vested
in or imposed on such person or persons as the Governor
General in Council may appoint or designate.
13. Until the Legislature of the Province of Newfoundland
otherwise provides, the powers, authorities,
and functions vested in or imposed on any member of
the Commission of Government of Newfoundland, as
such member or as a Commissioner charged with the
administration of a Department of the Government of
Newfoundland, at or immediately prior to the date of
Union in relation to matters coming within the classes
of subjects by the British North America Acts, 1867 to
1946, assigned exclusively to the Legislature of a province,
shall in the Province of Newfoundland be vested
in or imposed on such person or persons as the
Lieutenant-Governor in Council may appoint or
designate.
Legislature
14. (1) Subject to paragraph two of this Term,
the Constitution of the Legislature of Newfoundland as
it existed immediately prior to the sixteenth day of
February, 1934, shall, subject to these Terms and the
British North America Acts, 1867 to 1946, continue as
the Constitution of the Legislature of the Province of
Newfoundland from and after the date of Union, until
altered under the authority of the said Acts.
(2) The Constitution of the Legislature of Newfoundland
insofar as it relates to the Legislative
Council shall not continue, but the Legislature of the

8
Province of Newfoundland may at any time re-establish
the Legislative Council or establish a new Legislative
Council.
15. (1) Until the Legislature of the Province of
Newfoundland otherwise provides, the powers, authorities,
and functions vested in or imposed on a
Minister or other public officer or functionary under
any statute of Newfoundland relating to the Constitution
of the Legislature of Newfoundland as it existed
immediately prior to the sixteenth day of February,
1934, shall, subject to these Terms and the British
North America Acts, 1867 to 1946, be vested in or
imposed on such person or persons as the LieutenantGovernor
in Council may appoint or designate.
(2) Until the Legislature of the Province of Newfoundland
otherwise provides,
(a) the list of electors prepared pursuant to The
List of Electors Act, 1947, shall be deemed
to be the list of electors for the purposes of
The Election Act, 1913, subject to the provisions
of The Election Act, 1913, respecting
supplementary lists of electors;
(b) the franchise shall be extended to female
British subjects who have attained the full
age of twenty-one years and are otherwise
qualified as electors;
(c) the Coast of Labrador together with the
islands adjacent thereto shall constitute au
additional electoral district to be known as
Labrador and to be represented by one member,
and residents of the said district who are
otherwise qualified as electors shall be
entitled to vote; and
(d) the Lieutenant-Governor in Council may by
proclamation defer any election in the electoral
district of Labrador for such period as
may be specified in the proclamation.
16. The Legislature of the Province of Newfoundland
shall be called together not later than four months
aft er the date of Union.
i
9
EDUCATION
17. In lieu of section ninety-three of the British
North America Act, 1867, the following Term shall
apply in respect of the Province of Newfoundland :
In and for the Province of Newfoundland the
Legislature shall have exclusive authority to make
laws in relation to education, but the Legislature
will not have authority to make laws prejudicially
affecting any right or privilege with respect to
denominational schools, common (amalgamated)
schools, or denominational colleges, that any class or
classes of persons have by law in Newfoundland at
the date of Union, and out of public funds of the
Province of Newfoundland provided for education,
(a) all such schools shall receive their share of
such funds in accordance with scales determined
on a non-discriminatory basis from
time to time by the Legislature for all schools
then being conducted under authority of the
Legislature; and
(b) all such colleges shall receive their share of
any grant from time to time voted for all
colleges then being conducted under authority
of the Legislature, such grant being distributed
on a non-discriminatory basis.
CONTINUATION OF LAWS
General
18. (1) Subject to these Terms, all laws in force
in Newfoundland at or immediately prior to the date of
Union shall continue therein as if the Union had not
been made, subject nevertheless to be repealed,
abolished, or altered by the Parliament of Canada or
by the Legislature of the Province of Newfoundland
according to the authority of the Parliament or of the
Legislature under the British North America Acts,
1867 to 1946, and all orders, rules, and regulations made
under any such laws shall likewise continue, subject
to be revoked or amended by the body or person that
made such orders, rules, or regulations or the body or
person that has power to make such orders, rules,
or regulations after the date of Union, according to
2611()-2

10
their respective authority under the British North
America Acts, 1867 to 1946.
(2) Statutes of the Parliament of Canada in force
at the date of Union, or any part thereof, shall come
into force in the Province of Newfoundland on a day
or days to be fixed by Act of the Parliament of Canada
or by proclamation of the Governor General in Council
issued from time to time, and any such proclamation
may provide for the repeal of any of the laws of
Newfoundland that·
(a) are of general application;
(b) relate to the same subject matter as the
statute or part thereof so proclaimed; and
(c) could be repealed ·by the Parliament of
Canada under paragraph one of this Term.
(3) Notwithstanding anything in these Terms,
the Parliament of Canada may with the consent of
the Legislature of the Province of Newfoundland
repeal any law in force in Newfoundland at the date
of Union.
( 4) Except as otherwise provided by these Term3,
all courts of civil and criminal jurisdiction and all legal
commissions, powers, authorities, and functions, and
all officers and functionaries, judicial, administrative,
and ministerial, existing in Newfoundland at or immediately
prior to the date of Union, shall continue in the
Province of Newfoundland as if the Union had not been
made, until altered, abolished, revoked, terminated, or
dismissed by the appropriate authority under the
British North America Acts, 1867 to 1946.
Supply
19. Any statute of Newfoundland enacted prior
to the date of Union for granting to His Majesty sums
of money for defraying expenses of, and for other purposes
relating to, the public service of Newfoundland,
for the financial year ending the thirty-first day of
March, one thousand nine hundred and fifty, shall
have effect after the date of Union according to its
terms, until otherwise provided by the Legislature
of the Province of Newfoundland.
t .
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Patents
20. (I) Subject to this Term, Canada will provide
that letters patent for inventions issued under
the laws of Newfoundland prior to the date of Union
shall be deemed to have been issued under the laws of
Canada, as of the date and for the term thereof.
(2) Canada will provide further that in the event
of conflict between letters patent for an invention
issued under the laws of Newfoundland prior to the
date of Union and letters patent for an invention issued
under the laws of Canada prior to the date of Union
(a) the letters patent issued under the laws of
Newfoundland shall have the same force and
effect in the Province of Newfoundland as if
the Union had not been made, and all rights
and privileges acquired under or by virtue
thereof may continue to be exercised or
enjoyed in the Province of Newfoundland as
if the Union had not been made; and
(b) the letters patent issued under the laws of
Canada shall have the same force and effect
in any part of Canada other than the Province
of Newfoundland as if the Union had not
been made, and all rights and privileges
acquired under or by virtue thereof may
continue to be exercised or enjoyed in any part
of Canada other than the Province of Newfoundland
as if the Union had not been made.
(3) The laws of Newfoundland existing at the
date of Union shall continue to apply in respect of
applications for the grant of letters patent for inventions
under the laws of Newfoundland pending at the
date of Union, and any letters patent for inventions
issued upon such applications shall, for the purposes
of this Term, be deemed to have been issued under the
laws of Newfoundland prior to the date of Union; and
letters patent for inventions issued under the laws of
Canada upon applications pending at the date of Union
shall, for the purposes of this Term, be deemed to have
been issued under the laws of Canada prior to the date
of Union.
( 4) Nothing in this Term shall be construed to
prevent the Parliament of Canada from providing that
26110- 2!

12
no claims for infringement of a patent issued in Canada
prior to the date of Union shall be entertained by any
court against any person for anything done in Newfoundland
prior to the date of Union in respect of the
invention protected by such patent, and that no claims
for infringement of a patent issued in Newfoundland
prior to the date of Union shall be entertained by any
court against any person for anything done in Canada
prior to the date of Union in respect of the invention
protected by such patent.
Trade Marks
21. (1) Canada will provide that the registration
of a trade mark under the laws of Newfoundland prior
to the date of Union shall have the same force and
effect in the Province of Newfoundland as if the Union
had not been made, and all rights and privileges
acquired under or by virtue thereof may continue to be
exercised or enjoyed in the Province of Newfoundland
as if the Union had not been made.
(2) The laws of Newfoundland existing at the
date of Union shall continue to apply in respect of
applications for the registration of trade marks under
the laws of Newfoundland pending at the date of
Union and any trade marks registered upon such applications
shall, for the purposes of this Term, be deemed
to have been registered under the laws of Newfoundland
prior to the date of Union.
Fisheries
22. (1) In this Term, the expression “Fisheries
Laws” means the Act No. 11 of 1936, entitled “An Act
for the creation of the Newfoundland Fisheries Board”,
the Act No. 14 of 1936, entitled “An Act to Prevent the
Export of Fish Without Licence”, the Act No. 32 of
1936, entitled “An Act to Amend the Newfoundland
Fisheries Board Act (No. 11 of 1936)”, the Act No. 37
of 1938, entitled “An Act further to Amend the Newfoundland
Fisheries Board Act, 1936”, the Act No. 10
of 1942, entitled “An Act Respecting Permits for the
Exportation of Salt Fish”, the Act No. 39 of 1943,
entitled “An Act Further to Amend the Newfoundland
Fisheries Board Act, 1936”, the Act No. 16 of 1944,
13
entitled “An Act Further to Amend the Newfoundland
Fisheries Board Acts, 1936-38”, and the Act No. 42 of
1944, entitled “An Act Further to Amend the Newfoundland
Fisheries Board Act, 1936”, insofar as they
relate to the export marketing of salted fish from Newfoundland
to other countries or to any provinces of
Canada.
(2) Subject to this Term, all Fisheries Laws and
all orders, rules, and regulations made thereunder shall
continue in force in the Province of Newfoundland as
if the Union had not been made, for a period of five
Y,ears from the date of Union and thereafter until the
Parliament of Canada otherwise provides, and shall
continue to be administered by the Newfoundland
Fisheries Board; and the costs involved in the maintenance
of the Board and the administration of the
Fisheries Laws shall be borne by the Government of
Canada.
(3) The powers, authorities, and functions vested
in or imposed on the Governor in Commission or the
Commissioner for Nat ural Resources under any of the
Fisheries Laws shall after the date of Union respectively
be vested in or imposed on the Governor General
in Council and the 1\IIinister of Fisheries of Canada or
such other Minister as the Governor General in Council
may designate.
( 4) Any of the Fisheries Laws may be repealed or
altered at any time within the period of five years from
the date of Union by the Parliament of Canada with
the consent of the Lieutenant-Governor in Council of
the Province of Newfoundland and all orders, rules, and
regulations made under the authority of any Fisheries
Laws may be revoked or altered by the body or person
that made them or, in relation to matters to which
paragraph three of this Term applies, by the body or
person that under the said paragraph three has power
to make such orders, rules, or regulations under the
Fisheries Laws after the date of Union.
(5) The Chairman of the Newfoundland Fisheries
Board or such other member of the Newfoundland
Fisheries Board as the Governor General in Council
may designate shall perform in the Province of Newfoundland
the duties of Chief Supervisor and Chief

14
Inspector of the Department of Fisheries of the Government
of Canada, and employees of the Newfoundland
Fisheries Board shall become employees in that
Department in positions comparable to those of the
employees in that Department in other parts of
Canada.
(6) Terms eleven, twelve, thirteen anu eighteen
are subject to this Term.
FINANCIAL TERMS
Debt
23.· Canada will assume and provide for the servicing
and retirement of the stock issued or to b!:l issued
on the security of Newfoundland pursuant to The
Loan Act, 1933, of Newfoundland and will take over
the Sinking Fund established under that Act.
Financial Surplus
24. ( 1) In this Term the expression “financial surplus”
means the balances standing to the credit of the
Newfoundland Exchequer at the date of Union (less
such sums as may be required to discharge accounts
payable at the date of Union in respect of appropriations
for the public services) and any public moneys
or public revenue (including loans and advances
referred to in Term twenty-five) in respect of any
matter, thing, or period prior to the date of Union
recovered by the Government of the Province of Newfoundland
subsequent to the date of Union.
(2) Newfoundland will retain its financial surplus
subject to the following conditions:
(a) one-third of the surplus shall be set aside during
the first eight years from the date of
Union, on deposit with the Government of
Canada, to be withdrawn by the Government
of the Province of Newfoundland only for
expenditures on current account to facilitate
the maintenance and improvement of Newfoundland
public services, and any portion of
this one-third of the surplus remaining
unspent at the end of the eight-year period
shall become available to the Province of
Newfoundland without the foregoing restriction;
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(b) the remaining two-thirds of the surplus shall
be available to the Government of the Province
of Newfoundland for the development of
resources and for the establishment or extension
of public services within the Province of
Newfoundland; and
(c) no part of the surplus shall be used to subsidize
the production or sale of products of the Province
of Newfoundland in unfair competition
with similar products of other provinces of
Canada, but nothing in this paragraph shall
preclude the Province of Newfoundland from
assisting industry by developmental loans on
reasonable conditions or by ordinary provincial
administrative services.
(3) The Government of the Province of Newfoundland
will have the right within one year from
the date of Union to deposit with the Government of
Canada all or any part of its financial surplus held in
dollars and on the thirty-first day of March and the
thirtieth day of September in each year to receive with
respect thereto interest at the rate of two and fiveeighths
per centum per annum during a maximum
period of ten years from the date of Union on the
minimum balance outstanding at any time during the
six-month period preceding payment of interest.
Loans
25. ( 1) The Province of Newfoundland will retain
its interest in, and any securities arising from or
attaching to, any loans or advances of public funds
made by the Government of Newfoundland prior to
the date of Union.
(2) Unless otherwise agreed by the Government
of Canada, paragraph one of this Term shall not apply
to any loans or advances relating to any works,
property, or services taken over by Canada pursuant to
Term thirty-one or Term thirty-three.
Subsidies
26. Canada will pay to the Province of Newfoundland
the following subsidies:
(a) an annual subsidy of $180,000 and an annual
subsidy equal to 80 cents per head of the

16
population of the Province of Newfoundland
(being taken at 325,000 until the first decennial
census after the date of Union), subject
to be increased to conform to the scale of
grants authorized by the British North
America Act, 1907, for the local purposes of
the Province and the support of its Government
and Legislature, but in no year shall
sums payable under this paragraph be less
than those payable in the first year after the
date of Union; and
(b) an additional annual subsidy of $1,100,000
payable for the like purposes as the various
fixed annual allowances and subsidies provided
by statutes of the Parliament of
Canada from time to time for the Provinces
of Nova Scotia, New Brunswick, and Prince
Edward Island or any of them and in recognition
of the special problems of the Province
of Newfoundland by reason of geography and
its sparse and scattered population.
Tax Agreement
27. (1) The Government of Canada will forthwith
after the date of Union make an offer to the
Government of the Province of Newfoundland to enter
into a tax agreement for the rental to the Government
of Canada of the income, corporation income, and
corporation tax fields, and the succession duties tax
field.
(2) The offer to be made under this Term will
be similar to the offers to enter into tax agreements
made to other provinces, necessary changes being made
to adapt the offer to circumstances arising out of the
Union, except that the offer will provide that the agreement
may be entered into either for a number of fiscal
years expiring at the end of the fiscal year in 1952,
as in the case of other provinces, or for a number of
fiscal years expiring at the end of the fiscal year in
1957, at the option of the Government of the Province
of Newfoundland, but if the Government of the Province
of Newfoundland accepts the latter option the
agreement will provide that the subsequent entry into
a tax agreement by the Government of Canada with
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17
any other province will not entitle the Government of
the Province of Newfoundland to any alteration in the
terms of its agreement.
(3) The offer of the Government of Canada to
be made under this Term may be accepted by the
Government of the Province of Newfoundland within
nine months after the date of the offer but if it is
not so accepted will thereupon expire.
( 4) The Government of the Province of Newfoundland
shall not by any agreement. entered into
pursuant to this Term be required to impose on any
person or corporation taxation repugnant to the provisions
of any contract entered into with such person
or corporation before the date of the agreement and
subsisting at the date of the agreement.
( 5) If the Province of Newfoundland enters into
a tax agreement pursuant to this Term the subsidies
payable under Term twenty-six will, as in the case
of similar subsidies to other provinces, be included in
the computation of tax agreement payments.
Transitional Grants
28. (1) In order to facilitate the adjustment of
Newfoundland to the status of a province of Canada
and the development by the Province of Newfoundland
of revenue-producing services, Canada will pay to the
Province of Newfoundland each year during the first
twelve years after the date of Union a transitional
grant as follows, payment in each year to be· made in
equal quarterly instalments commencing on the first
day of April, namely,
First year …. ……….. …………………… .
Second year .. … …… .. … ………………… .
Third year …………………….. …………. .
Fourth year ……. ……………………… … .
Fifth year ……. … …. ……………………. .
Sixth year ………………………………… .
Seventh year ………… …………… …….. .
K 1gh t h year …… ……….. ……………….. .
Ninth year … …… ………………………… .
Tenth year ……. …………….. ……….. …. .
Eleventh year … … …….. ……… .. …… .. .
Twelfth year …. ……………. .. …… ……. .
$6,500,000
6,500,000
6,500,000
5,650,000
4,800,000
3,950,000
3,100,000
2,250,000
1,400,000
1,050,000
700,000
350,000

18
(2) The Government of the Province of Newfoundland
will have tbe right to leave on deposit with
the Government of Canada any portion of the transitional
grant for the first eight years with the right to
withdraw all or any portion thereof in any subsequent
year and on the thirty-first day of March and the
thirtieth day of September in each year to receive in
respect of any amounts so left on deposit interest at
the rate of two and five-eighths per centum per annum
up to a maximum period of ten years from the date of
Union on the minimum balance outstanding at any
time during the six-month period preceding payment
of interest.
Review of Financial Position
29. In view of the difficulty of predicting with
sufficient accuracy the financial consequences to Newfoundland
of becoming a province of Canada, the Government
of Canada will appoint a Royal Commission
within eight years from the date of Union to review
the financial position of the Province of Newfoundland
and to recommend the form and scale of additional
financial assistance, if any, that may be required by
the Government of the Province of Newfoundland to
enable it to continue public services at the levels and
standards reached subsequent to the date of Union,
without resorting to taxation more burdensome, having
regard to capacity to pay, than that obtaining generally
in the region comprising the Maritime Provinces of
Nova Scotia, New Brunswick, and Prince Edward
Island.
MISCELLANEOUS PROVISIONS
Salaries of Lieutenant-Governor and Judges
30. The salary of the Lieutenant-Governor and the
salaries, allowances, and pensions of the judges of such
superior, district, and county courts as are now or
may hereafter be constituted in the Province of Newfoundland
shall be fixed and provided by the Parliament
of Canada.
Public Services, Works and Property
31. At the date of Union, or as soon thereafter as
practicable, Canada will take over the following services
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and will as from the date of Union relieve the Province
of Newfoundland of the public costs incurred in
respect of each service taken over, namely,
(a) the Newfoundland Railway, including steamship
and other marine services;
(b) the Newfoundland Hotel, if requested by the
Government of the Province of Newfoundland
within six months from the date of
Union;
(c) postal and publicly-owned telecommunication
serviCes;
(d) civil aviation, including Gander Airport;
(e) customs and excise;
(/) defence;
(g) protection and encouragement of fisheries and
operation of bait services;
(h) geographical, topographical, geodetic, and
hydrographic surveys;
( i) lighthouses, fog alarms, buoys, beacons, and
other public works and services in aid of navigation
and shipping;
(j) marine hospitals, quarantine, and the care of
ship-wrecked crews;
( k) the public radio broadcasting system; and
(l) other public services similar in kind to those
provided at the date of Union for the people of
Canada generally.
· 32. (1) Canada will maintain in accordance with
the traffic offering a freight and passenger steamship
service between North Sydney and Port aux Basques,
which, on completion of a motor highway between
Corner Brook and Port aux Basques, will include suitable
provision for the carriage of motor vehicles.
(2) For the purpose of railway rate regulation
the Island of Newfoundland will be included in the
Maritime region of Canada, and through-traffic moving
between North Sydney and Port aux Basques will be
treated as all-rail traffic.
(3) All legislation of the Parliament of Canada
providing for special rates on traffic moving within,
into, or out of, the Maritime region will, as far as
appropriate, be made applicable to the Island of
Newfoundland.

20
33. The following public works and property of
Newfoundland shall become the property of Canada .
when the service concerned is taken over by Canada,
subject to any trusts existing in respect thereof, and
to any interest other than that of Newfoundland in
the same, namely,
(a) the Newfoundland Railway, including rights
of way, wharves, drydocks, and other real
property, rolling stock, equipment, ships, and
other personal property ;
(b) the Newfoundland Airport at Gander, including
buildings and equipment, together with
any other property used for the operation of
the Airport;
(c) the Newfoundland Hotel and equipment;
(d) public harbours, wharves, break-waters, and
aids to navigation;
(e) bait depots and the motor vessel Malakoff;
(f) military and naval property, stores, and equipment;
(g) public dredges and vessels except those used
for services that . remain the responsibility
of Newfoundland and except the nine motor
vessels known as the Clarenville boats;
(h) the public telecommunication system, including
rights of way, land lines, cables, telephones,
radio stations, and other real and
personal property;
( i) real and personal property of the Broadcasting
Corporation of Newfoundland; and
(j) subject to the provisions of Term thirty-four,
customs houses, and post-offices and generally
all public works and property, real and personal,
used primarily for services taken over
by Canada.
34. Where at the date of Union any public
buildings of Newfoundland included in paragraph (j)
of Term thirty-three are used partly for services taken
over by Canada and partly for services of the Province
of Newfoundland the following provisions shall apply:
(a) where more than half the floor space of a
building is used for services taken over by
Canada the building shall become the property
of Canada and where more than half the floor
21
space of a building is used for services of the
Province of Newfoundland the building shall
remain the property of the Province of
Newfoundland;
(b ) Canada shall be entitled t o rent from the
Province of Newfoundland on terms to be
mutually agreed such space in the buildings
owned by the Province of Newfoundland as is
used for the services taken over by Canada
and the Province of Newfoundland shall be
entitled to rent from Canada on terms to be
mutually agreed such space in the buildings
owned by Canada as is used for the services
of the Province of Newfoundland;
(c) the division of buildings for the purposes of
this Term shall be made by agreement between
the Government of Canada and the Government
of the Province of Newfoundland as
soon as practicable after the date of Union:
and
(d) if the division in accordance with the foregoing
provisions results in either Canada or
the Province of Newfoundland having a
total ownership that is substantially out of
proportion to the total floor space used for
its services an adjustment of the division will
be made by mutual agreement between the
two Governments.
35. Newfoundland public works and property not
transferred to Canada by or under these Terms will
remain the property of the Province of Newfoundland.
36. Without prejudice to the legislative authority
of the Parliament of Canada under the British North
America Acts, 1867 to 1946, any works, property, or
services taken over by Canada pursuant to these
Terms shall thereupon be subject to the legislative
authority of the Parliament of Canada.
Natural R esources
37. All lands, mines, minerals, and royalties
belonging to Newfoundland at the date of Union, and
all sums then due or payable for such lands, mines,
minerals, or royalties, shall belong to the Province of

22
Newfoundland, subject to any trusts existing in respect
thereof, and to any interest other than that of the
Province in the same.
Veterans
38. Canada will make available to Newfoundland
veterans the following benefits, on the same basis as
they are from time to time available to Canadian
veterans, as if the Newfoundland veterans had served
in His Majesty’s Canadian forces, namely,
(a) The War Veterans’ Allowance Act, 1946, free
hospitalization and treatment, and civil service
preference will be extended to Newfoundland
veterans who served in the First
World War or the Second World War or both;
(b) Canada will assume as from the date of Union
the Newfoundland pension liability in respect
of the First World Vf ar, and in respect of the
Second World vV ar Canada will assume as
from the date of Union the cost of supplementing
disability and dependants’ pensions
paid by the Government of the United Kingdom
or an Allied country to Newfoundland
veterans up to the level of the Canadian rates
of pensions, and, in addition, Canada will pay
pensions arising from disabilities that are
pensionable under Canadian law but not pensionable
either under the laws of the United
Kingdom or under the laws of an Allied
country;
(c) The Veterans’ Land Act, 1942, Part IV of
the Unemployment Insurance Act, 1940, The
Veterans’ Business and Professional Loans
Act, and The Veterans Insurance Act will be
extended to Newfoundland veterans who
served in the Second World War;
(d) a re-establishment credit will be made available
to Newfoundland veterans who served
in the Second World War equal to the reestablishment
credit that might have been
made available to them under The War Service
Grants Act, 1944, if their service in the
Second World War had been service in the
Canadian forces, less the amount of any
•
)
23
pecuniary benefits of the same nature granted
or paid by the Government of any country
other than Canada;
(e) Canada will assume, as from the date of
Union, the cost of vocational and educational
training of Newfoundland veterans of the
Second World War on the same basis as if
they had served in His Majesty’s Canadian
forces; and
(f) sections six, seven, and eight of The Veterans
Rehabilitation Act will be extended to Newfoundland
veterans of the Second World War
who have not received similar benefits from
the Government of any country other than
Canada.
P’ttblic Servants
39. (1) Employees of the Government of Newfoundland
in the services taken over by Canada pursuant
to these Terms will be offered employment in
these services or in similar Canadian services under the
terms and conditions from time to time governing
employment in those services, but without reduction in
salary or loss of pension rights acquired by reason of
service in Newfoundland.
(2) Canada will provide the pensions for such
employees so that the employees will not be prejudiced,
and the Government of the Province of Newfoundland
will reimburse Canada for the pensions for, or at its
option make to Canada contributions in respect of, the
service of these employees with the Government of
Newfoundland prior to the date of Union, but these
payments or contributions will be such that the burden
on the Government of the Province of Newfoundland
in respect of pension rights acquired by reason of
service in Newfoundland will not be increased by
reason of the transfer.
(3) Pensions of employees of the Government
of Newfoundland who were retired on pension before
the service concerned is taken over by Canada will
remain the responsibility of the Province of Newfoundland.

24
Welfare and Other Public Services
40. Subject to these Terms, Canada will extend to
the Province of Newfoundland, on the same basis and
subject to the same terms and conditions as in the case
of other provinces of Canada, the welfa;e and other
public services provided from time to time by Canada
for the people of Canada generally, which, in addition
to the veterans’ benefits, unemployment insurance
benefits, and merchant seamen benefits set out in Terms
thirty-eight, forty-one, and forty-two respectively,
include family allowances under The Family Allowances
Act, 1944, unemployment insurance under The
Unemployment Insurance Act, 1940, sick mariners’
benefits for merchant seamen and fishermen under the
Canada Shipping Act, 1934, assistance for housing
under The National Housing Act, 1944, and, subject to
the Province of Newfoundland entering into the necessary
agreements or making the necessary contributions,
financial assistance under The National Physical Fitness
Act for carrying out plans of physical fitness,
health grants, and contributions under the Old Age
Pensions Act for old age pensions and pensions for the
blind.
Unemployment Insurance
41. (1) Subject to this Term, Canada will provide
that residents of the Province of Newfoundland in
insurable employment who lose their employment
within six months prior to the date of Union and are
still unemployed at that date, or who lose their employment
within a two-year period after that date, will be
entitled for a period of six months from the date of
Union or six months from the date of unemployment,
whichever is the later, to assistance on the same scale
and under the same conditions as unemployment insurance
benefits.
(2) The rates of payment will be based on the
individual’s wage record for the three months preceding
his loss of employment, and to qualify for assistance a
person must have been employed in insurable employment
for at least thirty per centum of the working
days within the period of three months preceding his
loss of employment or thirty per centum of the working
days within the period since the date of Union,
whichever period is the longer.
25
Merchant Seamen
42. ( 1) Canada will make available to Newfoundland
merchant seamen who served in the
Second World War on British ships or on ships of
Allied countries employed in service essential to the
prosecution of the war, the following benefits, on the
same basis as they are from time to time available to
Canadian merchant seamen, as if they had served on
Canadian ships, namely,
(a) disability and dependants’ pensions will be
paid, if disability occurred as a result of enemy
action or counter-action, including extraordinary
marine hazards occasioned by the
war, and a Newfoundland merchant seaman
in receipt of a pension from the Government
of the United Kingdom or an Allied country
will be entitled, during residence in Canada,
to have his pension raised to the Canadian
level; and
(b) free hospitalization and treatment, vocational
training, The Veterans’ Land Act, 1942, and
The Veterans Insurance Act will be extended
to disability pensioners.
(2) Vocational training, Part IV of The Unemployment
Insurance Act, 1940, and The Veterans
Insurance Act will be extended to Newfoundland
merchant seamen who were eligible for a Special
Bonus or a War Service Bonus, on the same basis as if
they were Canadian merchant seamen.
(3) The Unemployment Insurance Act, 1940, and
The lVIerchant Seamen Compensation Act will be
applied to Newfoundland merchant seamen as they are
applied to other Canadian merchant seamen.
Citizenship
43. Suitable provision will be made for the extension
of the Canadian citizenship laws to the Province
of Newfoundland.
Defence Establishments
44. Canada will provide for the maintenance in
the Province of Newfoundland of appropriate reserve
units of the Canadian defence forces, which will include
the Newfoundland Regiment.

26
Economic Survey
45. (1) Should the Government of the Province of
Newfoundland institute an economic survey of the
Province of Newfoundland with a view to determining
what resources may profitably be developed and what
new industries may be established or existing industries
expanded, the Government of Canada will make available
the services of its technical employees and agencies
to assist in the work.
(2) As soon as may be practicable after the date of
Union, the Government of Canada will make a special
effort to collect and make available statistical and
scientific data about the natural resources and economy
of the Province of Newfoundland, in order to bring
such information up to the standard attained for the
other provinces of Canada.
Oleomargarine
46. (1) Oleomargarine or margarine may be
manufactured or sold in the Province of Newfoundland
after the date of the Union and the Parliament of
Canada shall not prohibit or restrict such manufacture
or sale except at the request of the Legislature of the
Province of Newfoundland, but nothing in this Term
shall affect the power of the Parliament of Canada to
require compliance with standards of quality applicable
throughout Canada.
(2) Unless the Parliament of Canada otherwise
provides or unless the sale and manufacture in, and
the interprovincial movement between, all provinces
of Canada other than Newfoundland, of oleomargarine
and margarine, is lawful under the laws of Canada,
oleomargarine or margarine shall not be sent, shipped,
brought, or carried from the Province of Newfoundland
into any other province of Canada.
Income Taxes
47. In order to assist in the transition to payment
of income tax on a current basis Canada will provide
in respect of persons (including corporations) resident
in Newfoundland at the date of Union, who were not
resident in Canada in 1949 prior to the date of Union,
and in respect of income that under the laws of Canada
27
in force immediately prior to the date of Union was
not liable to taxation, as follows:
(a) that prior to the first day of July, 1949, no
payment will be required or deduction made
from such income on account of income tax;
(b) that for income tax purposes no person shall
be required to report such income for any
period prior to the date of Union;
(c) that no person shall be liable to Canada for
income tax in respect of such income for any
period prior to the date of Union; and
(d) that for individuals an amount of income tax
for the 1949 taxation year on income for the
period after the date of Union shall be forgiven
so that the tax on all earned income
and on investment income of not more than
$2,250 will be reduced to one-half the tax that
would have been payable for the whole year
if the income for the period prior to the date
of Union were at the same rate as that
subsequent to such date.
Statute of Westminster
48. From and after the date of Union the Statute
of Westminster, 1931, shall apply to the Province of
Newfoundland as it applies to the other Provinces
of Canada.
Saving
49. Nothing in these Terms shall be construed as
relieving any person from any obligation with respect
to the employment of Newfoundland labour incurred or
assumed in return for any concession or privilege
granted or conferred by the Government of Newfoundland
prior to the date of Union.
Coming into Force
50. These Terms are agreed to subject to their
being approved by the Parliament of Canada and the
Government of Newfoundland; shall take effect notwithstanding
the Newfoundland Act, 1933, or any
instrument issued pursuant thereto; and shall come into
force immediately before the expiration of the thirty

28
first day of March, 1949, if His Majesty has theretofore
given His Assent to an Act of the Parliament of the
United Kingdom of Great Britain and Northern
Ireland confirming the same.
Signed in duplicate at Ottawa this eleventh day
of December, 1948.
On behalf of Canada:
LOUISS.ST.LAURENT
BROOKE CLAXTON
On behalf of Newfoundland:
ALBERT J. WALSH
F. GORDON BRADLEY
PHILIP GRUCHY
JOHN B. McEVOY
JOSEPH R. SMALLWOOD
G. A. WINTER
29
SCHEDULE
In this Schedule the expression “District” means
District as named and delimited in the Act 22 George V
Chapter 7 entitled “An Act to amend Chapter 2 of the
Consolidated Statutes of Newfoundland (Third Series)
entitled ‘Of the House of Assembly'”.
Grand Ji’alls-White Bay shall consist of the Districts of
White Bay, Green Bay, and Grand Falls, and all
the territory within a radius of five miles of the
Railway Station at Gander, together with the Coast
of Labrador and the Islands adjacent thereto.
Bonavista-Twillingate shall consist of the Districts
of Twillingate, Fogo, Bonavista North, and Bonavista
South, but shall not include any part of the
territory within a radius of five miles from the
Railway Station at Gander.
Trinity-Conception shall consist of the Districts of
Trinity North, Trinity South, Carbonear-Bay de
Verde, Harbour Grace, and Port de Grave.
St. John’s East shall consist of the District of
Harbour Main-Bell Island a.nd that part of the
Province bounded as follows, that is to say: By
a line commencing at a point where the centre
line of Beck’s Cove Hill intersects the North
shore of the Harbour of St. John’s, thence following
the centre line of Beck’s Cove Hill to the
centre of Duckworth Street, thence westerly along
the centre line of Duckworth Street to the centre
of Theatre Hill, thence following the centre line
of Theatre Hill to the centt:e of Carter’s Hill,
thence following the centre line of Carter’s Hill
and Carter’s Street to the centre of Freshwater
Road, thence following the centre line of Freshwater
Road to its intersection with the centre of
Kenmount Road, and thence along the centre line
of Kenmount Road to its intersection with the
North Eastern boundary of the District of Harbour
Main-Bell Island, thence along the said
North Eastern boundary of the District of Harbour
Main-Bell Island to the shore of Conception
Bay and thence following the coastline around

30
Cape St. Francis and on to the Narrows of St.
John’s Harbour and continuing along by the
North Shore of St. J olm’s Harbour to a point on
the North shore of the said Harbour intersected
by the centre line of Beck’s Cove Hill, the point
of commencement.
St. John’s West shall consist of the Districts of
Placentia-St. Mary’s and Ferryland, and that
part of the Province bounded as follows, that is
to say: By a line commencing at the Motion Head
of Petty Harbour and running in a straight line
to the Northern Goulds Bridge (locally known
as Doyle’s Bridge) thence following the centre
line of Doyle’s Road to Short’s Road, thence in a
straight line to a point one mile west of Quigley’s,
thence in a straight line to the point where the
North Eastern boundary of the District of Harbour
Main-Bell Island intersects Kenmount Road,
thence along the centre line of Kenmount Road
and Freshwater Road to Carter’s Street, thence
down the centre line of Carter’s Street and Carter’s
Hill to Theatre Hill and thence along the
centre line of said Theatre Hill to the centre line
of Duckworth Street and thence easterly along
the centre line of Duckworth Street to the top of
Beck’s Cove Hill, thence from the centre line of
said Beck’s Cove Hill to the shore of St. John’s
Harbour and thence following the shore of St.
John’s Harbour and, passing through the Narrows
by the North of Fort Amherst and thence following
the coastline Southerly to the Motion Head
of Petty Harbour, the point of commencement.
Burin-Burgeo shall consist of the Districts of Placentia
West, Burin, Fortune Bay-Hermitage, and Burgeo
and LaPoile and all the unorganized territory
bounded on the North and West by the District of
Grand Falls, on the South by the Districts of
Burgeo and LaPoile and Fortune Bay-Hermitage,
on the East by the Districts of Trinity North,
Bonavista South and Bonavista North.
31
Humber-St. George’s shall consist of the Districts of
St. George’s-Port au Port, Humber, and St. Barbe,
and all the unorganized territory bounded on the
North by the District of Humber, on the East by
the District of Grand Falls, on the South by the
District of Burgeo and LaPoile, and on the West
by the District of St. George’s-Port au Port.