§ 4.32 p.m.
§ EARL FORTESCUEMy Lords, on behalf of my noble friend Viscount Swinton I beg to ask the question of which he has given private notice: Whether His Majesty's Government have any statement to make on the recent discussions with the delegation from the Newfoundland National Convention.
§ THE SECRETARY OF STATE FOR DOMINION AFFAIRS (VISCOUNT ADDISON)My Lords, I am grateful to the noble Earl for giving me the opportunity of answering this question. As your Lordships will be aware, a National Convention elected by the people of Newfoundland have been meeting in that island since last September. The Convention were constituted to consider the financial and economic situation of the island and, in the light of this, to make recommendations to His Majesty's Government in the United Kingdom as to the possible forms of future Government to be put before the people of Newfoundland at a national referendum at which they would vote for the form they preferred. At the end of February, the Convention passed a Resolution asking the United Kingdom Government to receive a delegation from the Convention to make inquiries as to the financial and fiscal relationship between the United Kingdom and Newfoundland which might be expected in the event of the people of Newfoundland deciding either upon continuation of Commission government or restoration of responsible government or some other form of government. I readily agreed to this proposal and a delegation consisting of the Chairman and six other members of the Convention recently came to London.
We have held three meetings, at which I have answered specific questions which have been put to me. I was accompanied at these meetings by the Governor of Newfoundland (Sir Gordon Macdonald) and the Commissioner for Justice and Defence (Mr. A. J. Walsh). I indicated to the delegation that it is the desire of the United Kingdom Government that the same close and friendly relationships should exist between the two countries as have always existed. On the financial side, I said it would always be our desire to help Newfoundland within our means; but 692 I also thought it right to make clear, as I explained in your Lordships' House on December 11, 1945, that the special difficulties of our financial position must preclude us from undertaking commitments which might be beyond our power. Your Lordships are well aware of the immense problems which beset us to-day in the financial field—problems, indeed, which are greater than was expected at the time I made that statement.
I was therefore unable to hold out any hope, in response to a direct inquiry by the delegation, that the United Kingdom Government could consider taking over from Newfoundland liability for the public loan of about £17,800,000, which the United Kingdom Government guaranteed in connexion with the establishment of the Commission of Government in 1934. We shall, of course, continue our guarantee, and I indicated that we are prepared to proceed, at the earliest possible date, in agreement with the Newfoundland Government, with a conversion operation which would reduce the interest payments from the Newfoundland Exchequer. Moreover, in the present financial circumstances, I felt bound to say that the United Kingdom Government could not give such firm assurances as the delegation sought, that we should continue to purchase from Newfoundland large quantities of such commodities as frozen fish and iron ore. We recognized the importance of the industries concerned to the island's economy, and I assured the delegation that we should continue to strive to do our best to assist, but that it must be remembered that Newfoundland has a dollar currency, and our measure of assistance must depend upon our general dollar position.
I need not trouble your Lordships with further details of the meetings. Nearly all the questions raised with me by the delegation had, in fact, been under careful consideration for some time, having already been raised with me by the Commission of Government. As to the more general financial questions of the future, I told the delegation that if the people of Newfoundland, by their referendum, decide in favour of the continuation of Commission government for a further period, the United Kingdom Government would continue to be responsible for Newfoundland's financial stability. If, on the other hand, the people decided for responsible government, this would mean 693 that full responsibility for Newfoundland's finances must rest with the Newfoundland Government and people, and that the responsibilities undertaken by the United Kingdom Government in 1934 would cease. I am sure that the talks which I have had with the delegates have been useful, and I hope that the people of Newfoundland will, at the forthcoming referendum, choose the form of Government best suited to the interests of their country.
§ EARL FORTESCUEI am very grateful to the noble Viscount for his reply.