COMMONWEALTH $63

Dominion has, like the United States, adopted a policy of restrict-
ing such immigration. In framing foreign policy, Canada is
therefore inclined to lay more stress on the Pacific, and less on
European affairs, than Britain.

NEWFOUNDLAND.

Canada's smaller neighbour, Newfoundland, was mentioned
as a Dominion by the Statute of Westminster. Its people, how-
ever, have had a hard struggle with poverty, and much of the
development of its resources has been carried by British-owned
capital, on which interest has to be paid. During the great slump
of 1932, Newfoundland was, like all debtor countries, in great
difficulty, as, with the falling prices of exports, it became
impossible to obtain enough money to pay debts. The Dominion
was brought to bankruptcy, and the help of the United Kingdom
was sought. In 1934, Newfoundland lost its Dominion status,
and has since been ruled by a Commission over which the
Governor has control.

AUSTRALIA.

People from Britain had begun to settle in Australia in the
early nineteenth century, and, as is well known, parts of the
Continent were used for a time as penal settlements. The laws
of Britain were then so harsh that by no means all those sent to
Australia were serious criminals; but the policy did mean that
there was no attempt to provide the new land with a population
suited to its needs. Later came a larger stream of free emigrants,
and, as in Canada, separate States were formed. Some of these
began to block inter-State trade by tariffs, and the resulting
inconveniences led to a desire for Federation. When in 1883
Germany occupied New Guinea, Australians began to consider
more closely the strategy of the Pacific Ocean, and the need
for a united defence policy. The Commonwealth of Australia
Constitution Act, 1900, provided the States with a Federal
Constitution, in accordance with which, subject to the Statute of