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SECTION III
FOREIGN AFFAIRS
1.
GENESIS OF ICELAND'S FOREIGN POLICY.
Iceland's foreign policy has been developing only since 1941 because prior to that
time its foreign affairs were conducted by Denmark. The effective period is even
shorter considering the fact that Iceland was practically isolated during the war
except for contact with the United States and Great Britain and that its trade was
governed, not by choice, but by circumstances beyond her control.
Iceland's foreign policy is compounded of these basic factors: a struggle for
national survival, a desire to minimize foreign attention resulting from the island's
newly acquired strategic importance, a complete lack of armed forces or any military
potential, and the economic necessity of acquiring suitable markets for fish exports.
Preference for any one of the major powers or any political orientation is confused
by the necessity of reconciling these usually divergent factors. Icelanders who desire
to avoid "Americanization" and who oppose Communism may seek closer connec-
tions with Scandinavia; merchants, for economic reasons, desire collaboration with
the United States or England, while the fishing interests look to Britain and the
USSR.
2.
SIGNIFICANT RELATIONS WITH OTHER NATIONS.
a. United States.
Icelandic relations with the US are significantly influenced by Iceland's policy
of "neutrality" between East and West, by fear of "Americanization", and a deter-
mination not to become a military base of the US.
Under an agreement of July 1941, US forces entered Iceland to protect the coun-
try and Allied shipping routes in the North Atlantic. The US took over this responsi-
bility from the British, who had landed in 1940, and agreed to occupy until "the
end of the war." After hostilities with Germany ceased, the US, in October 1945,
negotiated with Iceland for a long-term lease of two air bases and one naval base
which had been constructed by the occupying forces. The proposal was made public
in April 1946, when the Icelandic Prime Minister announced that Iceland could not
consider such an arrangement. The announcement increased an already awakened
antagonism for the Americans, and the Icelanders considered such a request for
bases an infringement of their sovereignty. The United States then invoked the
clause "end of the war" and, maintaining that the war was not officially ended,
continued to operate Meeks Field. About 1,000 of the original 50,000 men stationed
in Iceland remained. A new proposal was submitted to the Icelanders, and on 7
October 1946 the US-Iceland Airport Agreement was signed whereby Meeks Field
(at Keflavik) was transferred to the government of Iceland, and Iceland granted the
III-1
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"ocrText": "SECTION III\nFOREIGN AFFAIRS\n1.\nGENESIS OF ICELAND'S FOREIGN POLICY.\nIceland's foreign policy has been developing only since 1941 because prior to that\ntime its foreign affairs were conducted by Denmark. The effective period is even\nshorter considering the fact that Iceland was practically isolated during the war\nexcept for contact with the United States and Great Britain and that its trade was\ngoverned, not by choice, but by circumstances beyond her control.\nIceland's foreign policy is compounded of these basic factors: a struggle for\nnational survival, a desire to minimize foreign attention resulting from the island's\nnewly acquired strategic importance, a complete lack of armed forces or any military\npotential, and the economic necessity of acquiring suitable markets for fish exports.\nPreference for any one of the major powers or any political orientation is confused\nby the necessity of reconciling these usually divergent factors. Icelanders who desire\nto avoid \"Americanization\" and who oppose Communism may seek closer connec-\ntions with Scandinavia; merchants, for economic reasons, desire collaboration with\nthe United States or England, while the fishing interests look to Britain and the\nUSSR.\n2.\nSIGNIFICANT RELATIONS WITH OTHER NATIONS.\na. United States.\nIcelandic relations with the US are significantly influenced by Iceland's policy\nof \"neutrality\" between East and West, by fear of \"Americanization\", and a deter-\nmination not to become a military base of the US.\nUnder an agreement of July 1941, US forces entered Iceland to protect the coun-\ntry and Allied shipping routes in the North Atlantic. The US took over this responsi-\nbility from the British, who had landed in 1940, and agreed to occupy until \"the\nend of the war.\" After hostilities with Germany ceased, the US, in October 1945,\nnegotiated with Iceland for a long-term lease of two air bases and one naval base\nwhich had been constructed by the occupying forces. The proposal was made public\nin April 1946, when the Icelandic Prime Minister announced that Iceland could not\nconsider such an arrangement. The announcement increased an already awakened\nantagonism for the Americans, and the Icelanders considered such a request for\nbases an infringement of their sovereignty. The United States then invoked the\nclause \"end of the war\" and, maintaining that the war was not officially ended,\ncontinued to operate Meeks Field. About 1,000 of the original 50,000 men stationed\nin Iceland remained. A new proposal was submitted to the Icelanders, and on 7\nOctober 1946 the US-Iceland Airport Agreement was signed whereby Meeks Field\n(at Keflavik) was transferred to the government of Iceland, and Iceland granted the\nIII-1"
}