In Newfoundland, construction of bases started immediately after the exchange of notes between the American Secretary of State, Cordell Hull, and British Ambassador, Lord Lothian. Major bases were established near St. John's, Argentia and Stephenville. These would be staffed by thousands of American servicemen. The Americans were also able to build facilities and station servicemen on the RCAF bases at Gander, Torbay and Goose Bay when these became operational. There were pockets of American servicemen scattered throughout Newfoundland and Labrador. They were located at shore batteries, radar stations, telephone repeater stations, etc.
Canada didn't look favorably at these American enclaves in Newfoundland, fearing that once the war was over, Newfoundland could become a protectorate of the US.