The cities of Newfoundland and Labrador have followed the province into the breach, and are refusing to fly the Maple Leaf.

Last week, Premier Danny Williams ordered the Canadian flag removed from provincial buildings after negotiations with the federal government failed to produce a deal that would allow the province to keep all the revenue from offshore oil and gas.

Williams called the latest offer from Ottawa a "slap in the face" and said he wouldn't talk any more.

The mayors of St. John's, Corner Brook and Mount Pearl have now offered their support for Williams's stand, ordering the Maple Leaf removed from their city halls.

"I think it's important as citizens of this province, as citizens of Newfoundland and Labrador, to let the federal government know that we're behind the premier on this issue," said St. John's Mayor Andy Wells.

In Mount Pearl, Mayor Steve Kent has replaced the Maple Leaf with the pink, white and green ensign designed before Newfoundland joined Confederation.

"This is not about being anti-Canadian," said Kent. "This is about being pro-Newfoundland and Labrador. This flag that we've raised is a symbol of our historic struggle as a people."

Not every mayor in the province agrees. Some towns aren't sure the Atlantic Accord and the flag flap are linked.

In Happy Valley-Goose Bay, Mayor Leo Abbass said the Maple Leaf will still fly, even though he supports Williams.

"The flag seems to be a separate issue right now, and we're really not sure why the flags were removed," Abbass says.

Stephenville Mayor Cec Stein says the town does not fly flags through the winter, and hasn't made a decision on flying the Maple Leaf.

"I guess when you get so frustrated, the message has to be loud and clear," said Stein.

"We've been screwed around with and I guess it's time for somebody to listen, but maybe not that far."

Williams is enjoying vocal support from people in the province, who are calling in to radio shows and writing letters.

However, Sam Connors, a former president of the provincial Federation of Municipalities, is outraged by the flag decision.

His son Neil has served in five Canadian military operations, most recently in Afghanistan.

"He was there when his buddies died under the flag, and I think it's really despicable that the premier of the province would take down the Canadian flag," said Connors.

"There's got to be another way to negotiate than that."

Newfoundland and Labrador has been pushing, along with Nova Scotia, to retain 100 per cent of offshore energy revenues without paying a penalty in clawbacks to equalization payments.

Ottawa now takes up to 70 cents of every dollar by reducing equalization payments.

Finance officials have said that Ottawa's latest offer would end the clawbacks, putting $2.5 billion to $3 billion into the provinces' coffers.

But Williams said the proposal falls short of the 100 per cent of revenues promised him by Prime Minister Paul Martin, and that the province could lose at least $1 billion of offshore revenue over the next eight years.

Williams also objected to a condition that required the province to eliminate its $700-million deficit in order to receive increased benefits from offshore revenues beyond eight years.

Nova Scotia Premier John Hamm said he will continue to negotiate with Ottawa. New talks are planned for January.