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a. Conservative Party.
The control of the Conservatives by the Thors family, representing the large
fishing interests, is buttressed by wealth, ability, and family connections. Since 1938,
the Thors family has been the major influence in the economic life of Iceland, and
since 1942 it has dominated Iceland's political life as well. Olafur Thors is the leader
of the Conservative Party which also accommodates certain small agrarian interests
and the Reykjavik merchant group.
The Conservative Party, formed in 1924, has polled the greatest number of votes
in each national election since 1931 and has held the largest number of Althing seats
since 1942. The actual membership is about 6,000; it polled 26,000 votes in 1946.
Although the Conservatives support such measures as social security and old
age pensions, their economic platform, by Icelandic standards, is definitely "conser-
vative". Conservative party leaders see the United States as the defender of cap-
italism and free enterprise and are generally pro-American on the grounds of what
they conceive to be Iceland's or their own interests. Olafur Thors, although opposed
to Communism on ideological grounds, previously considered Communist collabora-
tion in the government essential to political stability, and he believed he could control
the Communists if they were admitted. His present attitude may be less positive
toward the necessity for including them. The extreme right wing, which has its own
press, opposes cooperation with the Communists and is as pro-American as any Ice-
landic political group can afford to be.
b. Progressive Party.
The Progressive Party, the second strongest in Iceland, was founded in 1916
and now has a membership of about 4,000. The Progressives dominated the political
scene from 1927 to 1942, and governed the country largely for the benefit of their
constituents, the farmers and the cooperative interests.
During the period of Progressive rule, the party developed into a formidable
organization based on a personal following whose loyalty was cemented by patronage.
The Progressives are basically a center party, but there are left and right (moderate)
wings, led by Herman Jonasson and Eysteinn Jonsson, respectively.
The economic policy advocated by the Progressives is one of large state expend-
itures on behalf of the farmers, a state import monopoly, a privileged position for
the cooperatives, and soak-the-rich taxation.
C. Social Democratic Party.
The Social Democratic Party has the smallest representation in the Althing.
Founded in 1917 by the working-class and seamen's groups, the party has suffered
since 1930 from the competition of the Communists and from weak leadership, but
it gained a substantial proportional increase in its voting strength in the 1946 elec-
tions when it polled 11,914 votes. The right wing, under the leadership of Stefan
J. Stefansson, dominates the party. Although ostensibly espousing socialism, the
Social Democrats have receded from their early radicalism. The leadership presently
pursues a policy of idealistic, equitable government rather than urging legislation
I-5
SECRE
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"ocrText": "a. Conservative Party.\nThe control of the Conservatives by the Thors family, representing the large\nfishing interests, is buttressed by wealth, ability, and family connections. Since 1938,\nthe Thors family has been the major influence in the economic life of Iceland, and\nsince 1942 it has dominated Iceland's political life as well. Olafur Thors is the leader\nof the Conservative Party which also accommodates certain small agrarian interests\nand the Reykjavik merchant group.\nThe Conservative Party, formed in 1924, has polled the greatest number of votes\nin each national election since 1931 and has held the largest number of Althing seats\nsince 1942. The actual membership is about 6,000; it polled 26,000 votes in 1946.\nAlthough the Conservatives support such measures as social security and old\nage pensions, their economic platform, by Icelandic standards, is definitely \"conser-\nvative\". Conservative party leaders see the United States as the defender of cap-\nitalism and free enterprise and are generally pro-American on the grounds of what\nthey conceive to be Iceland's or their own interests. Olafur Thors, although opposed\nto Communism on ideological grounds, previously considered Communist collabora-\ntion in the government essential to political stability, and he believed he could control\nthe Communists if they were admitted. His present attitude may be less positive\ntoward the necessity for including them. The extreme right wing, which has its own\npress, opposes cooperation with the Communists and is as pro-American as any Ice-\nlandic political group can afford to be.\nb. Progressive Party.\nThe Progressive Party, the second strongest in Iceland, was founded in 1916\nand now has a membership of about 4,000. The Progressives dominated the political\nscene from 1927 to 1942, and governed the country largely for the benefit of their\nconstituents, the farmers and the cooperative interests.\nDuring the period of Progressive rule, the party developed into a formidable\norganization based on a personal following whose loyalty was cemented by patronage.\nThe Progressives are basically a center party, but there are left and right (moderate)\nwings, led by Herman Jonasson and Eysteinn Jonsson, respectively.\nThe economic policy advocated by the Progressives is one of large state expend-\nitures on behalf of the farmers, a state import monopoly, a privileged position for\nthe cooperatives, and soak-the-rich taxation.\nC. Social Democratic Party.\nThe Social Democratic Party has the smallest representation in the Althing.\nFounded in 1917 by the working-class and seamen's groups, the party has suffered\nsince 1930 from the competition of the Communists and from weak leadership, but\nit gained a substantial proportional increase in its voting strength in the 1946 elec-\ntions when it polled 11,914 votes. The right wing, under the leadership of Stefan\nJ. Stefansson, dominates the party. Although ostensibly espousing socialism, the\nSocial Democrats have receded from their early radicalism. The leadership presently\npursues a policy of idealistic, equitable government rather than urging legislation\nI-5\nSECRE"
}