In 1763, as part of the reorganization of British North America that followed the Seven Years’ War, Britain ceded to France the islands of Saint-Pierre and Miquelon, and France ceded their North American claims east of the Mississippi River. That same year the coast of Labrador was added to Newfoundland. The partitioning of the Labrador Peninsula became a point of debate between the Quebec government and Britain. The coast was eventually defined as running from Blanc Sablon to Cape Chidley. The interior boundary—which delineates present-day Labrador—was not set until 1927.

The population of Newfoundland increased during the 18th century, with a substantial number of settlers coming from southeastern Ireland as well as from England. Fishing merchants did not oppose this development, since they could make money by supplying the residents with fish and goods. Beginning in 1729, the commander of the naval squadron was also appointed governor, and his officers were made magistrates. During the winter, when the squadron was absent, civil magistrates were in control. The court system became steadily more formalized over the course of the century. A supreme court was created in 1792.

The Anglo-French wars between 1793 and 1815 (a component of the Napoleonic Wars) mark a watershed in Newfoundland history. The English migratory fishery went into a terminal decline, while the fishery carried on by a growing number of residents expanded significantly. In addition, the catching of seals developed into an important economic activity. By the early 19th century, a colonial society had taken root on the island, and demands were being made for constitutional and legal reform. In 1824–25 Newfoundland was granted official colonial status, with a civil governor. Representative government was established in 1832 with the election of the first House of Assembly. Responsible government, in which the executive administration was drawn from and answerable to elected legislators, was instituted in 1855.

Nine years later, amid a severe economic depression, islanders began to debate whether to join the Canadian confederation that was taking shape on the mainland. The issue was hotly contested and extremely divisive. In the end, the confederates were overwhelmingly defeated in the 1869 general election.

It was quickly realized that for Newfoundland to remain as an independent political unit, it needed to diversify economically. Therefore, the major initiative of the late 19th century was the construction of a trans-island railway that, it was hoped, would stimulate the development of land-based industries. The results were limited. Mining did become increasingly important, however, and by the turn of the 20th century, a forest industry was well established. A newsprint mill opened at Grand Falls in 1909. Fishing, however, remained the primary economic pursuit until nearly the end of the century.

Given the size of its population and economy, Newfoundland made a significant contribution to the Allied effort during World War I (1914–18) by raising a regiment that served in Europe with distinction. The financial cost, however, was considerable, and the colony entered the economically difficult postwar period with a large public debt. Though there were promising developments in the mining and newsprint industries in the 1920s, the local economy remained vulnerable, and the government faced collapse with the onset of the Great Depression. The possibility of a default on debt payments prompted British intervention. In 1934 local responsible government was suspended and replaced by an appointed Commission of Government, which reported to the Dominions Office in London.

Toward confederation

World War II created an economic boom in Newfoundland and Labrador. There was a great influx of Canadian and U.S. military personnel, and large bases were constructed at St. John’s, Argentia, Gander, Stephenville, and Goose Bay. Smaller installations were established in many other locations.

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With the end of the war, discussion began over Newfoundland’s constitutional future. Instead of restoring local responsible government, the British ordained the election of a National Convention to recommend suitable forms of government to be placed on a referendum ballot. After intense and emotional debate, the convention rejected confederation with Canada as an option and recommended a choice between the existing Commission of Government or responsible government. In spite of this, the British government added confederation as a choice in a referendum held on June 3, 1948. The result was inconclusive. A second referendum, on July 22 of that year, gave the confederates a majority of 52.3 percent. Newfoundland became a Canadian province on March 31, 1949.

With the assistance of the federal government, the province’s infrastructure was transformed over the course of the second half of the 20th century, and both living standards and educational levels markedly improved. The search for economic stability and prosperity has continued since 1949, but successive governments have failed to find a lasting solution. With the fisheries severely depleted and forest resources also diminished, the province’s hopes for the future lie with oil and natural gas extraction on the Grand Banks and off Labrador, the mineral and hydroelectric resources in Labrador, computer-based businesses in Newfoundland, and tourism. Tourism has been actively encouraged since the 1990s.

The increased development of resources in northern and western Labrador brought dramatic and not always positive changes to its people, stimulating political activism among the Inuit and Innu groups, who sought out formal recognition of their land claims within the province. A treaty with the Inuit created the territory of Nunatsiavut in northern Labrador in 2005, and negotiations have continued with the Innu and, on the island, with the Mi’kmaq.