The Free State of Newfoundland was a sovereign country, now-defunct, that existed from the fall of the British monarchy in 1916 until it was absorbed by Canada in 1949. For most of its existence, it served as a quasi-independent republic claimed by both the UBPR as well as the Proletarian Republic of Canada and served as the "Last Bastion" of non-Communist rule in the old Confederation. In 1926, per the Drummondville Agreement that ended the Canadian Civil War, the "Blue Canadian" government, led by Mackenzie King, would form the Parliament of Canada in Newfoundland with claims to all of Canada, causing friction with the local Newfoundlanders. Newfoundland afterwards became a crossroads between Canadian conservatives and liberals fleeing the Communists, American wartime interests, Communist influencers from both Europe and neighboring Canada, as well as a fiercely independent element of locals who proposed instead a "Republic of Newfoundland" that would be neither the Free State formed awkwardly after the end of the October Revolution or the continuation of a Canadian government most Newfoundlanders viewed as having "failed to keep the hordes of proletarianism" from overruning their own country.

Newfoundland participated with the Central Powers in World War Two and was a crucial member of the North Atlantic theater, with the 2nd Newfoundland Marines Regiment helping seize back Iceland from the Russian Navy in the Battle of Iceland. After World War Two, however, republican forces won the crucial 1946 elections over the incumbent pro-Blues government and Peter Cashin became the Prime Minister of the Free State. In a move that many believed could precipitate a war with Canada, Cashin sought to declare an "independent, inviolable Republic of Newfoundland - separate from Canada, separate from Britain." Cashin's declaration was interpreted by the PRC's government as well as the United States to be a violation of the Drummondville Agreement and the Red Canadians threatened war. Though war was averted in 1946, a Cashin-backed plebiscite in 1949 in which the pro-independence question won with an outright majority sparked the 1949 Newfoundland Crisis in which Canada declared the Drummondville Agreement void and invaded Newfoundland. The Blue Canadian government was evacuated by the United States Navy, the Battles of Cabot Strait and Cape Canso, and Newfoundland was annexed into Canada in 1950 as the Province of Newfoundland. The modern province of Newfoundland regards itself as the political successor to the Free State, as well as the Dominion of Newfoundland.

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