NATIONAL INTELLIGENCE SURVEY 68; ICELAND; GOVERNMENT AND POLITICS
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CIA-RDP01-00707R000200110053-5
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NAM
Iceland
June 1973
NATIONAL INTELLIGENCE SURVEY
SECRET
NO FOREIGN D/SSEM
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NATIONAL INTELLIGENCE SURVEY PUBLICATIONS
The basic unit of the NIS is the General Survey, which is now
published in a bound -by- chapter format so that topics of greater per-
ishability can be updated on an individual basis. These chapters� Country
Profile, The Society, Government and Politics, The Economy, Military Geog-
raphy, Transportation and Telecommunications, Armed Forces, Science, and
Intelligence and Security, provide the primary NIS coverage. Some chapters,
particularly Science and Intelligence and Security, that are not per'inent to
all countries, are produced" selectively. For small countries requiring only
minimal NIS treatment, the General Survey coverage may be bound into
one volume.
Supplementing the General Survey is the NIS' Basic Intelligence Fact
book, a ready reference publication that semiannually updates key sta-
tistical data found in the Survey. An unclassified edJion of the factbook
omits some details on the economy, the d,,ense forces, and the intelligence
and security organizations.
Although detailed sections on many topics were part of the NIS
Program, production of these sections has been phased out. Those pre-
viously produced will continue to be available as long as the major
portion of the study is considered valid.
A quarterly listing of all active NIS units is published in the Inventory
of Available NIS Publications, which is also bound into the concurrent
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number and includes classification and date of issue; it thus facilitates the
ordering of NIS units as well as their filing, cataloging, and utilization.
!nitial dissemination, additional copies -of NIS units, or separate
chapters of the General Surveys can be obtained directly or through
liaison channels from the Central Intelligence Agency.
The General Survey is prepared for the NIS by the Central Intelligence
Agency and the Defense Intelligence Agency under the general direction
of the NIS Committee. It is coordinated, edited, published, and dissemi-
nated by the Central Intelligence Agency.
WARNING
This document contains information affecting the national defense of the United States, w7thin the
meaning of title 18, sections 793 and 794 of the US code, as amended. Its transmission or revelation
of its contents to or receipt by an unauthorized person is prohibited by low.
CLASSIFIED BY 019641. EXEMPT FROM GENERAL DECLASSIFI-
CATION SCHEDULE OF E. O. 11652 EXEMPTION CATEGORIES
5B (1), (2), (3). DECLASSIFIED ONLY ON APPROVAL OF THE
DIRECTOR OF CENTRAL INTELLIGENCE.
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Y._� Y.�i �irrrl iY r� YYiI�YYI v� `..v�� i �iv� v v74 v �iv v- v
WARNING
The NIS is National intoliigena and my no be M
leased or shown to roprosenbtives of any 109101
mart or international body oxcept by spsdR oullolin "M
of the Director of Control Intelligence in accondowe **h
the provisions of National Security coum i In1oMi0e-I N M
rective No. 1.
For NIS containing unclassified moisda however, on
portions so marked may be made available for offs pur
poses to foreign nationals and nongovanamot p rionn,l
provided no attribution is made to Notional l fl j MOena or
the National Intelligence Survey.
SubseC"Wo and grvma an individuoly pin mold
according to Co~. CkasiRcotion/ooiNrol ledges.
tions ores
(U /OU) Unclassified /for 0fIW ton tely
(C) ConfideMio1
(S) seaet
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Page ho
C. political dynamics
7 D. Nallonal so P
Independence Party
a. Membership and electoral strength
b. Organization and leadership
c. Program and policies
I Press and finances
2. Progressive Party
a. Membership and electoral strength
b. Organization and leadership
c. Program and policies
d. Press and finances
3. People's Alliance
a. Membership and electoral strength
b. Organization and leadership
c. Program and policies
d. Press and finances
4. Social Democratic Party
a. Membership and electoral strength
b. Organization and leadership
c. Program and policies
d. Press and finances
5. Organization of Liberals and Leftists
a. Membership and electoral strength
b. Organization and leadership
c. Programs and policies
d. Press and finances
6. Pressure groups
a Labor
b. Management
c. Cooperatives
d. Youth
7. Electoral procedures
Fig. 1 Structure of the central government
chart) 3
Fig. 2 Althing building photo) 4
Fig. 3 Administrative divisions map) 6
Fig. 4 Governments since 1,944 (chart) 8
Fig. 5 Althing elections (chart) 9
1. marrrslic pIrlicy
0
3. P10mg" IN &Y
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4. Pbpula: attitudes IUTAW l NdIW d P*dA A
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F� T mcab to pteruareat stability
1. ixiE.mient and cllieldmv
3. C.crmnumiat subw
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h. lnllutsrcr in wpul" Woor
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1. Polio f on
I intellipprntr and sec ity Im*w
3. lk f"W vsta' 41shmcut
G. SdMed b*Uowapby
Chronolow
Glossary
FIGURES
Page
ii
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Government and Politics
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the Organization of Liberals and Leftists. The ncNv
governnwnt its attempting to insure Iceland's
contintwd prosperity despite persistent inflationary
pressures. In it highly popular move designed to
reserve Icelandic fisheries, the Cabinet followed
through on preelection rhetoric and announced a
unilateral extension of territorial fishing limits from 12
to 50 nautical miles, effective I September 1972.
Another key plank in the coalition platform, early
withdrawal of the NATO Iceland Defense Forces
(IDF), remains it more contentions issue and it
potential threat to the longevity of the present
government. The three parties together command 32
of 60 scats in parliament. Although the government
retains considerable popular support after it year in
office, ideological disparities between the centrist
Progressives and the People's Alliance have placed
strains on the coalition and could ultimately shorten
its normal 4 -year term of office.
H. Structure and functioning of the
government (U /OU)
Iceland is un independent republic with it hig'ily
centralized administration. Conforming to the pattern
set in continental Scandinavia, the Constitution
established it parliamentary democracy, with the
directly elected members of the parliament (Althing)
currently representing five poiftical parties. Since the
functional executive, the Prime Minister and the
Cabinet, is responsible to the Althing, the separation
of powers between the legislative and executive
branches is ill defined. The duties of the popularly
elected President are largely ceremonial and subject to
Althing monitoring; these duties conform fairly closely
to those performed by the King when Iceland was still
associated with Denmark.
The judiciary is essentially independent, with the
right to review legislation. Personnel of the civil service
are generally competent and impartial in the
performance of their duties, comparing in these
respects to their counterparts in continental
Scandinavia. Similarly, government service enjoys
social prestige. Government employees most be
Icelandic citizens and must qualify professionally for
the positions they are to fill. I -Iigh -level appointments
are made by the Cabinet, generally after consultation
among the party leaders.
1. Constitutional system
The present Constitution, which dates from 1 )tine
1944, represents the culmination of a long struggle for
independence. Denmark had granted the island it
2
Constitution in 187 -I, lint this basic law, tho,igh giving
the Althing limited legislative powers, left executive
autho.ily in the hands of the King of Denmark. A
constitutional revision in 1903 brought partial home
rule, and 12 years later a second revision established
complete parliamentary democracy, including the
extension of suffrage to women over 21. In 1918,
through the Act of Union ratified by both countries,
Iceland became an independent state joined to
Denmark under it common monarch. Only Iceland's
defense and diplomatic representation abroad
continued to be the responsibility of the Danish
parliament. Sentitner.t for complete independence,
kept alive by a vocal minority during the interwar
years, gained rttany adherents during World Near II.
Conquered Denmark proved unable at that time to
defend the island, and after experiencing benevolent
British and then U.S. occupation, the citizens of
Iceland voted overwhelmingly in it May 1944
plebiscite to abrogate the Act of Union. The
Constitution of 1915 .yas revised and "updated" by it
government commission in it little more than it month,
and the new Constitution of 1944 was approved in
june by 95% of the voters. It established it republic
wased on the principles of it unitary stale with
legislative supremacy, but featuring some separation
and balance of powers reflected in the prerogatives of
an essentially independent judiciary. The Constitution
was designed primarily as it statement of basic
principles of governmenni modified by specific
limitations of power and a tit iuriiy� limitations
beyond which the government might not act without
the approval of the Althing and the electorate, as
provided under it clearly outlined amending
procedure. The Constitution of Iceland is similar to
that of Denmark, the only major difference being that
it specifically provides for judicial review to test the
constitutionality of legislation. It ,pecifically
guarantees freedom of the pt''S', assembly, and
religion; universal suffrete; the right of habeas corpus;
the inviolability of the 1, line; and the right to wvn
property. School attenda, e is compulsory, unless
[ionic instruction commensurate with state standards
is given, inc! the Evangelical Lutheran C :hurch is
declared the established, state- supported church of
Iceland. The Constitution also prescribes the
procedure for stational elections.
2. Executive
a. President
Executive power is nominally vested in the
President, who is the titular Chief of State (Figure_ 1).
He is directly elected by the people for a 4 -vcar term,
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LEONLATIVE EXECUTIVE
Althing
PRESIDENT
UPPER HOUSE
20 members
(S Standing
Committees)
41 o CABINET*
LOWER HOUSE
40 members
(11 Standing
Committees) MINISTRIES
i
Agriculture
Commerce
Communications
Education
6 Standing Finance
Committees Fisheries
Foreittn Affairs
Health and
Social Security
Industry
justice and
Ecclesiastical
Affairs
Social Attain
Statistical Bureau
VOTERS
Responsibility j Election --w Appointment
*The Cabinet normally consists of the Prime Minister and
six ministers� most of whom hold two Portfolios.
FIGURE 1. Structure of the central government (U /OU)
must be an Icelandic citizen at least 33 years old, and
must meet all the requirements for voting in national
elections. Although elected in ahout the same way as
the President of the United States, the I
President is to it much greater extent account-:ble for
his actions to the Althing; his office is more like that of
the President of the Federal Republic of Germany or
the monarch in any of the mainland Scandinavian
countries.
Although the President himself cannot be held
directly responsible for the acts of his administration,
cabinet ministers are responsible to the Althing.
Subject to legal action only by special consent of the
Althing, the President may also he removed from
office by an involved procedure which has not vet
been tested. A resolution demanding his removal must
be passed by a three- fourths vote of the combined
Althing and then submitted to a n:tional plebiscite
within 2 months. While awaiting the outcome of the
plebiscite, the President may not perform any of his
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b. Cabinet
Executive (1114r Is ccie111411 h% the C-1114141. Nllic�h i�
apho ;rated I% the Pri- Adenl. The (miittl�1 is 11s11al1%
compost-( of part% leaden echo have Ix�1�11 1.11.01ti1 to
parliament Will aw both individnall% :lid c�4dlmli%4.1x
responsible to it. The Cabinet is licaded b% Ihr Prime
Minister. From 19111, Then piirliiint4Illi' govem-
nient was introduced to 191; the various (::11 ?;,,t�
contained only a sitg1e rtiinister. Since 16114 Ihr
;;;;usher of ministers, excluding the 1 1 rinie Mitii�h�r,
has varied between three and six: in 197�2 then� %ton�
six ministers.' This relativel% small numlx�r has
resulted in o1w minister's having; jurisdiction over iron
than one ministry. According to the 19.1.1 Conslitlt-
ti4ni, there must be at least tao ministers. hilt there
tnav he as lnariy as the President deem, nec�4�ssary. In
practice the uuntbes has been determined by the
Cabinet itself during; the negotiations within and
among the parties incident to its fornr$tion.
Ministers are not required to he elected tnenilen of
the Althing, although they usually are. As members of
the Cabinet thev automatically have seats in the
parliament. where they may take part in debates, but
they stay not vote or sit on legislative Coil) ntiIWes
unless they are elected inetn1ers.:1ny minister may be
impeached by the Althing in matters relating to the
discharge of his official duties. Such ceases wotil(I he
brought before the High Court of the Realns, a special
court of inipcachnlent establisheO in 190.1 but never
used. Because of party structure. coalition govern
ments are the rule. Consequently. Cabinet changes
usually result from disagreement among the
participating parties rather than from evident lack of
parliamentary support. Such changes occur when a
parliamentary majority informs the President that a
new Cabinet is read\- and arranged. Should the old
Cabinet refuse to resign, the Althing compels it to do
so by passing a motion of no confidence. If the
Cabinet resigns of its own volition, as is usually tilt-
'Fora current listing of 6% government offici.11s constalt Chiefs of
State and Cabinet Mcnibers of Foreign Governments. published
monthly by the Directorate of Intrlligenc�e. Central Intelligence
Agency.
:3
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5
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APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5
persons are committed to suitable institutions, while
cIc�oholic�s sentenced to innprisotunent can be placed in
a sanatorium for their tern of punishment or for it
longer lern of treatment up to IS months. "I'hc honnc
for juvcl ''r- dviinyucnts in lieykjavik had 16 innnttes
in 1965.
There is a dearth of statkdo on the nature and
incidence of crimes; however, most violations are
minor ones, such as drunkenness, brawling, and
disregard of traffic regulations. Murders and other
crimes of premeditated violence are very rare �a fact
that ennphasires the law abiding nature of the
Icelandic citizen.
5. .egional and local governments
Iceland has a highly centralized form of
administration in which nationaily appointed sheriffs
(sysitntetn) fill dual roles as executive agents of the
central government and as participants in rural local
government. In addition, each sheriff has it nunnberof
other function;, including those. of tax collector, police
chief, judge, and public prosecutor. These sheriffs arc
appointed for life by the Cabinet and are responsible
for executing national laws Cli It local Ievc! as well as
Sysla boundary
pp National capital
501728 4.73
FIGURE 3. Administrative divisions (U /OU)
6
for supervising the functioning of tile local
governnnents. Because of their various capacities, they
are responsible to inure than one ministry in the
government.
For national administrative purposes Icelanel is
divided into 1 -1 incorporated towns (kapsladhir) .ltd
16 rural counties (syslur). At the local level, seven
syslnr are bisected to make a total of 23 rural districts
(Figure i). 'These districts are further subdivided into
sonic 215 parishes (hreppar). Iceland's oldest and
stnallest units of administration. F'.ac�h district has its
own council (syslu nefnd), which is presided over by
the local sheriff as president. If the council should pass
it measure which he decnns contrary to the law or
dangerous for the district, It(- may suspend it pending a
decision of the appropriate ministry.
Each district council, normally seven to 15 nren, is
composed of one member elected for it -1 -year term
from each civil parish in the district. The� council
meets at least annually at the call of the sheriff or of a
majority of its members. Decisions are made by
nwjority vote of a cluorunn. In case of a tic, the sheriff
casts the deciding ballot. 'I'll( council administers
district affairs as it whole and supervises most parish
Y
Administrative Divisions
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r-.n
affairs, including veto power over parish council
decisions. It is charged with administering public
instructions (through the educational and school
boards), public health, old -age usistance, taxes, and
the licensing of businesses. It iu',o acts on'such matters
as roads, river fords, bridges, and certain matters
regarding the use of sheep pasturage. The district has
no independent power of taxation. Finances not
otherwise: covered by fixed revenues are obtained from
each of the parishes on a basis determined by a central
government law.
Parish councils, like district comeils, are elected
every 4 years by majority vote of tile eligible voters. In
size they range, from three to seven members, one of
whom is coopted to serve as parish mayor. The council
must meet at least twice it year upon the call of the
mayor or by it majority decision of the other members.
It is mainly concerncd with road maintenance, sewage
disposal, ;nd public welfare assistance, but it also
handles education, public health, Althing elections in
the parish, and matters concerning sheep pasturage.
Parish revenues arc derived principally from the parish
tax. 'The annual budget, which is maintained by the
mayor, must be approved by the council and then
forwarded to the district council for review. Decisions
of the parish councils involving increases in parish tax
rates, disbursements for payment of parish payrolls,
and the acquisition, sale, or mortgage of parish real
estate must be approved by the district before they arc
valid. "rhe parish council can override it veto of the
district council with a two thirds majority vote of the
taxpaying eligible voters meeting in general assembly.
In addition, the parish council may always appeal to
the competent minister in the event of a dispute with
the district.
Municipal government in the 1.1 incorporated
towns is on the whole similar to that in the 23 rural
districts. Each town has its own council, which coopts
its mayor. Its powers compare quite closely with those
of its rural counterparts. The main difference between
the two is that proportional representation is used in
town elections to take into account differences in the
degree of popular support enjoyed by the five political
parties. And the mayor, unlike the sheriff, does not
function as it law officer, there being separate court
and police officials.
C. Political dynamics (C)
Modern political parties in Iceland (late from the
period immediately following the granting of home
rule under the Danish crown in 1903. These parties
have since become the principal spokesmen of the
different socioeconomic groups. Only the relatively
broad spectrum Independence Party is not primarily
representative of it special interest group. however,
the ability of the leaders of the several parties to
compromise some parochial positions in order to attain
conuruon ends accounts for the relative success of
parliamentary democracy its a form of government in
Iceland. This ability is not et as refined as in
continental Scandinavia �where legislative su-
prenucy is also the rule �but clearly surpasses that
evidenced in similarly governed countries to the south,
notably France of the "Third and Fourth Republics and
contemporary Italy.
There are five political parties: the Independence
Party, which is, generally representative of business
and commercial interests but also has significant
support among farmers and workers; the Progressive
Party, next in sire, which traditionally represents rural
interests; the Communist- dominated Pcople*s :Alliance
and the Social Democratic Party, both of which dray
major support from among workers; and the
Organization of Liberals and Leftists, Iceland's newest
party, which represents democratic leftists dissatisfied
with the previously existing liberal parties. Since 1932
no one of these has had sufficient parliamentary
strength to rule by itself for any appreciable period,
and coalition governments have been the general rule.
Since 1942 only two governments have not been
coalition regimes, and in both cases they were
minority governments supported by other parties.
Five of 10 governments since World \War II have
been headed by the Independence Party, which by
virtue of its predominant size has usually required the
cooperation of only one other part\- in order to form a
majority coalition (Figure -1). The Progressive Party
has traditionally had a weaker position. Its strained
relations with the independence Party �ste. iming
from it conflict of leading personalities on both sides as
well as from basically divergent economic policies
have made it difficult for the Progressive Party to
obtain the Independence Party's support in forming a
government. For the same reasons, when the
Progressive Party has participated in governments
formed by the Independence Party, the cooperation
has tended to he weak. The strength of the Progressive
Party was considerably diminished by it change in the
electoral law in 19.13, reducing overrepresentation of
the rural areas, which provide most of the Progressive
vote. Since that time, in order to form a government
without the Independence Party, the Progressives have
required the support of at least two other parties. Since
1944 it Progressive has headed three of the five
governments in which the party has participated.
h
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FIGURE 4. Icelandic Governments
since 1944 (U /OU)
Prime Minister*
(Parties Months in office
in government) 6 12 18 24 31 36 42 48 Sf 60 66 72 79 94 90
Dates
Olafur Thors
Oct 1911
(Ind., SD. Com.)
Feb 1917
Ste an J. Stefai.sson
c.
Feb 1917
(SD, Ind., Prog.)
_.b
Dec 1919
Olafur Thors
Dec 1919
(Ind.)"
Mar 1950
S. Steinthorsson
Mar 19S0-
(Prog.. Ind.)
Sep 19S3
Olafur Thors
t{
Sep 1953
(Ind., Prog.)
uffivien115 %%4-11 in flat- elt-cfiom of 14); I Its
enter the gowrninent in coalition %%ith 1111. I 1 rg1gr %i%e%
:Ind slat� People% Alliance.
Despite the %udder prominentr of the O ualliialion
of Liberals :Ind 1.efti%1 minor Ii:irlit�% hale seld40n1
played a %igilificalli role in ico mtlic Il9ilifit 'fht�n�
have been only thwe of all% 11 /11NNf111 �illtr 11133.
Ilild tuo tf III -%t %%ery %p11111i�r I;roull� vbt- F.9n1N�r%
hirt% aa% formed of (1i% %ident I in 111.11 %eaf.
out of a leta) of IS) %t�af%. it 11ot1 111te ill file 111:31
elvelion% and 1%40 in the 111:3. ela�t�fion I111 it %1.11140111
of v%i%tence in 1912. The liep111ihe.ul 1.91111.
t-%IaIli %hed in 151153 111 di%%idt-al� bona the
I11(h.1 �ndetlev fail%, (.tilr�tl to gain n�pn�%rulalitnl lu
the� 52- nN�udI�r Alrhinx in t-leeflosw deal rear atul
diwppeawd %laortl% aflent,anl%. 11N� 9d14ui.91ifa1.il1.1
:uld Wilillioni %f \'alioilal Dt�fetr9. 1'41rh. nrt:.rni/r11 i11
19:13 to t:uul1:9i1;u at~aiu�t Itrland %9ltden%e al4reenN�nl
%ith the utisitt�tl stafe�%.Illtl it %jurtil iultNg1 ill \vro
moll 15140 %t�ul% i11 fill- rhti�lifim oil 111.91 +e.41. 16111 I.1ded
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5
Ito 1.11.1.1 it %i111t1r 414-101111 11ft�l4.a!14.1 111 140001 11,1011 -lift.
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11.1111.11 liftoff` %oolrw in 11.116911.11 1.14'A liftla 111,110 mo% .oilov
I/.ttl 111107` ila 1001111.6iivoll ill llkloc "I"I of If,,-
1 71mia14.nlh
Its-141 IIN 1.0tu" 0111111110.0 .ol Alrh 1fr,� at. -.1Ia
ailft'7 114.140111`1 1411;. 1% 11011 1114' 4.h. /11014. its t.& 10.1.11 Lfvt
1.11:11 it lot h 111,11 1111 1'hrQh^fa670- Patlt as to1-
/111tgltlaht 1It11.itt11`hl.ttl �hf911v I iggtr i lot Vivo` It./� I
i1at16:U114.h1at 4.1t.71ivN1a IIN` IINb `lw�t1!. �1N7 fart
4 .111101h71 1012 91 1111� 1s11o/llaf 7-1ff0- 97 +11v11,1 71 19
IT 3'. 611 IIf1 -11.1011 6u ita 4.f l'f w nI,11 l.4. 0.011
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ft allt dl �ow
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if116 I1f tlr4f 141 h4lirfs itoll ry ala .01"1 logo- lrrr14og90-ty i.fl rot
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El
Il
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5
Nrekrtn�tl ltattl% Ivilde"lril iu the cr,:tke of Prime
Mittimrt Hj atni Ilrut�tliktsson's at�c�ideulcal death ill
I1r,0_ The tl(�c�lim. ill elt�cfi rat) supltett is reflected in
nIIIIS ilkd italiliv the Iraclitiun:d bars. of little-
Ill the aluadn�nnial local elections
mint� 161.319 the Imlefx�ttdettty Part%'s share of the vote
dnplxtl inrm 511"t ill 1955. to li(, (16Ni2), .12.3o7i
4161 NO1 rind 11.Stf Ili 1 9,9. 1)espile this general
thwtteanl Imud, the party in 1970 retained control of
the He%kj.IvIk 'lunivilml ('ouncil, its major power
Iaa.r. 11% shitting HAIIt of 115 Seats.
h. Organiwiun anti iradernhip
The Indvix�tulence Party is the best organizvd of the
political parties. acttd earl% discipline is well
ttatinta invd. 5mpr: me lxccer is formally vested in the
cimenlion dandifundur), which meets at least ow-v
men 2 rain. Among the duties of the convention
delegates. Nho mm mmilx�r 71N) or more. is the
selection of the lkart% chairman and vice chairman. An
1!i -nt:an trntrirl ctmunittee (midhstjorn) mimages
patty affair Iveluvelt collvv$ttiorts. In a move design d
to stmntdhrn the voice of the rank and file. the central
omnintitlre was mpanded in 161 9 from 12 to its present
1! Members. Haight man� tmw elected by the convention
from mentlx�n not fn parliament. Ilalf of the
trntaining 10 are ele�c�ted b% party members of
Ikarlianent inrm within their own ranks; the other five
arr nlrmlx�n of the central committee ex officio. lw.
an� the party chairman shad vice chairman. and the
chairmen of the Labor Council, the National
ft�tleratkon of Iml�l emdence !'arty Women, and of the
Fedrration of Indelx�ndemcr Youth.
The lkift% eminci) I flokkrrad theoretically has
�upmme Immer Im-lceeen conventions btal in practice is
often mdmeryient to the central commit(ee. The party
e�tttneil writ�. fn size Ire-cause of the manner in which
Its metnlrenhip fs determined. It typically consists of
scme IIN) members from all sections of the country
con%iitmted as follows: all the party's Althing members
and Candidates in the preceding Althing election; all
present and former central committee members. the
tnrntlen of the party organizational committee
chosen by the Althing delegation. and of the financial
Ixanl apixinled by the central committee, numbering
lx�rhalr IK together. and it score or more other
membem chosen from the various constittacncies. The
ce�t .rat commititee convenes the party convention for
the pmrlxrse of establishing policy for each 2 year
lx�rieel. Together with the Althing delegation, it
defines lrelicy between convcralions and meetings of
the council. 'I'hr central committer also functions as
an execeative committee. Local organization is based
oat socielies, one in each urban constituency; more
than one is permitted in each mwl (listrict. All
societies must coordinate their activities with the
central committee. In the Beykjavik constituency it
board of n�preseittatki -s approved b the central
committee selects the lieykjavik candidates for the
Althing and elects the delegates to the convention.
Since 1930 the Independence Party has maintained
the Federation of Independence Youth for the purpose
of developing political leadership among its members.
Because of the activities of this group, the party has
bevrt able to provide effective leaders locally and has
tsttally clone \%ell on a national scale. The federation is
the largest political youth group in Iceland; it carries
on political educational programs, organizes trips to
foreign countries for its members. and issues;( number
of publications. The party also maintains the National
Federation of Independence Women; the Labor
and the Society of Independence Students, at
the U" rsity of Iceland. In addition, it has its own
u
labor orgai�z.ation, the Debating Society of
Independence Laborers and Seamen. wl(ich represents
the parh strong labor element in Re This
organization is not it trade union, btit is composed of
party members who belong to trade unions.
The Independence Party has been headed since
1970 by jolanr Ilafstvin, a relatively undistinguished
politician who moved tit) from party vice chairman on
the death of the popular Pritne Minister Benediktsson.
Under Benediktsson's astute stewardship (1961 -70) the
Independence Party remained an effective instrument
for protecting the ccononic� and political power of the
well -to -do and intlnential business interests. Ilafstein.
however, inherited it party divided by the succession
issue and somewhat complacent after more than a
decade in power. His selection as Prime Minister was
essentially a compromise between career politician
Gunnar I'horoddsett and Geir llallgrinusson, then
labor of Beykjayik.
c. Program and policies
During its 12 year tenure (19:59 71 as senior partner
in the governing coalition, the Independence Party
exhibited an internationalist, staimebly pro Western
foreign policy and it mildly conservative but flexible
domestic program. In principle, the party advocates a
free market economy with it minimum of state
interference. Nevertheless, compromises necessitated
by tit(- coalition form of government as well as the
require nests of Iceland's precariously balanced
ec�ononnv have obliged the Independence Party to be
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5
flexible in its domestic polic While in power, it
accepted governmental operation of firms in those
fields where the public welfare is substantially
involved or where private enterprises are Incapable of
operating efficiently without government assistance.
Control of Iceland's persistent inflation has Ic been
a party objective and is an issue which the Hart will
doubtless exploit while it remains a member of tle
opposition. The party has also encouraged economic
diversification, notabhy through negotiations leading
to the construction of a large hydroelectric power
station at Btrfell and related aluminum smelter near
I lafnarfjordhur, and the exploitation of diatomite
deposits at Myvatr lake. To strengthen its appeal to a
wide range of economic groups, it has in the past
supported social security and old -age pensions and
increased family welfare benefitv,. low -cost housing,
technical education, and financial aid to students in
scientific fields.
Th`e Independence Party is the least insular of
lecland's major political parties. It strongly supports
an effective Icelandic contribution to NA'T'O and
continued defense ties with the United States. It has
consistently championed the stationing of U.S. forces
in Iceland at the airbase at Keflavik. The part has
favored continuing Icelandic membership in all non
Communist international organizations and associate
membership in the European Communities (EC). The
Independence leadership has also encouraged foreign
capital investment as a means of spurring_ industrial
and commercial expansion.
d. Press and finances
Persons closely connected with the leaders of the
Independence Party own and control the most widely
read newspaper in the country, Morgunbladhidh (The'
Morning Paper). It is published in Reykjavik daily
except Monday. Although the party itself no longer
controls a majority interest in the afternoon daily,
Visir, it continues to receive support from the paper
inasmuch as seven party members own the company
publishing Visir. The party also controls several local
papers in outlying areas. It has important investments
in the book publishing field, and its leaders maintain
close tics with the owners of the major hook publishing
house, /safold, and the General Book Society. 'I'hc
party derives most of its income from dues, proceeds
from an occasional fundraising campaign or lottery,
and financial support from the business community.
2. Progressive Party
a. Membership and electoral strength
The Progressive Party is the oldest of the existing
parties and is the second most popular in Iceland.
Since 1933 its share of the popular vole in the national
elections has ranged from 22rb to 281, mostly from
the rural areas, but increasingly from urban
corrttnunitics. In three of the five elections before
October 1912, it won a plurality of Althing scats,
principally because the inequitable electoral system
favored rural areas and gave it overrepresentation. In
the elections of 1971 it garnered 23.:3% of the vote,
compared with 28.1% in 1967, lud--ing its
representation in the Althing by one scat. Second to
the Independence Party in actual membership as well
as in voter support, the Progressive Party also has a less
varied base than its chief rival. It consists primarily of
the small farmers and the cooperative movement, with
some small additional following in the labor unions. It
has gained some support among businessmen and
professional groups, as the country -to -town movement
provides a broader urban base. The strong support
from the bulk of the Federation of Icelandic
Cooperative Societies, numbering approximately
-10,000 members, probably accounted for most of the
votes the Progressives won in the last two national
elections. On the other hand, the longstanding.
cleavage and rivalry between the federation and
private business interests has been an important source
of antagonism between the iwo larger parties.
In the municipal elections of 1970 the Progressive
Party improved slightly on its showing of 1966,
capturing 19.4% of the vote and increasing its
representation on the 15 -scat Reykjavik Municipal
Council from two to three. In so doing the party
becanx the second strongest in the cities and
demonstrated that it has been able to retain the
loyalty of many rural constituents who have migrated
in large numbers to the population centers. Despite
these recent urban inroads, however, its primary
source of strength remains the sparsely settled
hinterlands beyond the Reykjavik area. In the
national elections of 1971, the Progressives won a
plurality in five of eight electoral districts, running
second to the� Independence Part\ only in the capital
and the adjacent South and Reykjanes districts (Figure
6).
b. Organization and leadership
As with the other Icelandic parties, supreme power
in the Progressive Party is theoretically vested in the
party convention, which must meet at least every 4
years. The 15th convention was held in 1971. In
practice the convention only outlines policy; authority
between convention meetings is exercised by the
central committee. This body, which meets annualh
when no convention is held, is composed of the parh
Althing representatives, sonic 15 members resident in
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5
i!
TOTAL VotlS: 102,1112 Otflar
r
c Other 1.77, rory
was 2s9. re7. r p
6.m
Other f.:%, H�.'
0.?J, 4
S.f,
IIIMrw
waeelloM ,Z,
ro.% 5.12!
Reykjavik
Other 4411
OLL
1 .17.
sop 1 101% 1F
i 42.67.
K
NNW /R
other
Other
F l� M
14.07,
n
WX
20.4%
it
FIGURE 6. Distribution of voting strength by electorol districts,, 1971 (U �OU)
Re%�kjavik and vicinity. mc�nthc�r. fnml ill(- Oithcr
se%1 eiec�toral districts. and Four menlll(�rs of 111(-
Young 1 societies. 'Tile nl(st inlitcrt: w
policyinaking body is the I'1 -nuln e%ecwi%e commiltl�c�
composed of the part c�hairnlan. %ice chairimm.
secretary. vice secretary. tn�asurer. vice Irc�:lsurc�r. mill
eight stalwarts elected h% thc� c�c�nlral commiltc�c�. The�
party's local organization is based on .ocietiv% mid t%%49
auxiliary nnlhn�lla societies: the Young I'ro>;n�ssi%c s
and 1'rogressive %%'omen. 'There is al least one part%
society in each electoral district. Iaec11ti%e INards
elected by the societies c�cordinate part% acti%itiv%
within the districts and aith the central clommiller.
The Progressive- fart% has been less s11c�c�c�ssj111 Iha11
the I led epc11denc�c� fart% in developing IN1Jilical
leadership potential among the %ounger grim11%. lout it
appears to him- a sufficient n�+er%e Id %411111grr 11"�11
with leadership clualific�alions (o fill imlmortaw jwsls.
1?
111 %r%eral loyal t�11.Ip1/�t� Oil till' 14911114 1
arl� 1rlalli /1 illll dw 11.111111.11 frll/'t.11i1g1 1I l/dtntt
1'r49 l;resi%e.. "1,49.1� to-law-4.1% �111.111 IIN IIIIN h111p
LIMP 6.1+ tradi111n1.111% lwvtl 11Nrtc radical in d%
atlilud/�� 16.111 till' j1.1r1% .r .1 'A l"44- I n g111�u11% l' 11
f I%Irl% 6�.1111�hI11I1. 161� 111111t; 1'ns;n�� %11. 1"%jII1itl�
I.Irt; Nr %%clan� 11n/lcr.1111�_ 1.�111t.ds/1�d
cl�1no1164- 111.1111611,;. 00, Ir49nuN 11t.d %.1lrC1L1llk .81141
1111149%.11 49f 11111 lorl.l11d D dmiw Film 7lwn- aw 1%%Oi
%406e64�s ill I'11gre -.1 %%4911"�11 49110 ill IIN' 1 .11tll.11.11
01111.0 ill %1.1111�%rl 11w I.IIN�tal %I 0A.111 iteis l'1
4 Oil 1 ".o 1. �111111.111� .11 IIN� 1 n1%1*NI% 491
I1,�l.u1d. 111.1%. .w in1INH.ud n/k� in tlaini11>; h1r1�
Ica Irn
The I'n11Cn�i%1� I'.1tt% i� hra/Wy1 W. Priam- %hes 1.�#
01a111r J4911a111MNVn1_ .1 149911141�r 11n1��wt of 61A. a1N/
%11411�Irlcrl 1:%Atime Joit -w11 a+ 4 its I Nllrltar%
11 i6 %1111Oit1gh 11.1.11a11% Itirlulh Ifluanl dw 1 11111.61
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5
%late� aloof a Imtp ot"Ill of 4 ml Itlrmloo In
%A 0: jlhannr.Mn i a ti ltltrr c 11111
nnitnatinalhr c�Ik+" In. 14114"1 to Ito ao 4�antitn lot
Mlrl fo.1%.1111 alio�lla Ill$� wH1o'1% di%rrtrnt wine� 01
hi. path. Store I"I the %l a se 4111 .rwal
oct�a%lotm crmlr char tot a lool:$I �1411 Isetwort$ 1111�
r a di ra l left Minx and Ihr t'+m.er%ali%r. 11114-11
fraCilonan tttthl_ Two 11%144-. whi.�h in ImNk�111ar false
619 the path in a %Idle fit fetniml atr the mirllt too
which the patio .111 11111 4.11161111rale will$ Illy
11 mm ll ni h If* olo"I IV lttdifkv 4d jttis tr. at$ol Ihr
cmlinlwlion of the lorlawlk t'.N. oleffilsw attn�rmrnl.
lhih j4hannr..on and Vim ChMllrman Fillar
14110han. the ptI�w�n1 fotMCII nlitli.frr. 11;1%4
allo�mptrd to 4 t a "Nolwafr a�ltfrr_
c. Prmx rem awl pawes
Al flfsolth Ihr Pnogn�..i%r fart% ha� trowtlfl� 1ok�tllll
to alfrarl .omr .Ilpp orl anfmt Ismill��. and
pnIr'%** tl Kntllp% in 11 41'"IM. it I* %fi 11w.io:,11%
attatia aw trinr.rnl. the �mall latnll�n aw Ila�
c%trtlterali%r._
A% .In�h it ha% 4iIt.i4rn ad%ovalyd.
and wllc'n In Ihr to%rn1116rn1 Imlarmelll"l.
mra%Iln*% prinurilt Islimiliiintt I.Srw Iwo tntlllw
IMfortm l avewalIr cis 61 1 1st which the pan% 6411"1
rrlarl info hv0*6l1vm 4111tin t i:� rah in 4salflisa/ will)
the social 1)rm11rratic Part% %Irnlmlid Into$$
romlpnm+m wtr't+an to wit the %411111mod off Illr s41dal
lartrlac�taf rather Ihan Intro 4lirtsi TVIK tl with lily
Inlr"% +ol ortaniml 61011r. T o mainlain it% �mono
�Ilppmrt am "M the farmer. the Pntttr ai%r Part%
fa%nn mraalrr. IIInrII% If�nrlillllt atrie�ldlun�.
Irn4114Iirgt 0111Wk, [off atriralfllml In11 1111�t., ln�l
na%a�r (IF1.). In
14131 I launtlb:ll Valdimar.41n. :t lefNinger :1111 It:irly
chairman al file time. broke with tilt ci�tatral
vinismitlee. left the Itarly with hi, 1`411141wrr too join
with the Onmmini.t. In gaining Off the 11;1.
and 2 yr:m iatrr i4sillrtl Hills tile Clol tof ftsrtn the 1
'file !"Mal Denux -nih trail 601% in Ihr IFI.1e,tll li
PA and the Indrisendentt. Party. The% noon inrlutle
few I1"It41rla111t laln,r leader% and conNrtsl 41nl% 41114�
nalionully intp41rtur1l unitill. till 1'onu�n'� I alNlr
Uni411i (Franr�oknl. In :111 atterttpf Its n�%er�e dre ining
p oliliril fofrtunr. :slid 141 rrunitt, the divided 11o11-
01sn"Iu11ist left. file Stxdal Drtn41crts ill 00411er
14112 rntlora�d Ili principle if merger with the
OrXuai /utioll l$f I.11wrah. and Leftist�. t l
4annumm:ileil afler the nr%l national c tunas. aflic�h
mane It.- laid tats later than
c. PrinXrom and policictr
The Smial Dena,crah ha Iceland. a% in other
Scandinavian cmintrim. al,and41m�tl their pun�h
%Iur%ist printdplm at 4111 4:1rh dale and develoimd hill$
a ttnKlerlle. refoorinki part%. %1"%inK til pnunolion'f
reemofmic "wildly f41r oats rurnl�rr Ihr41uKh %ariom
proXram.41f mnial nelfar� and advimiling,tnu� 4. 111.
crntm,l. l$ver i114Ita.In. 141 inure that till- olieritimr. of
private rntrriwke 4141 not cv,nfliet uith Ihr puhlit�
infermt. rather than acn,ss- the htanl 11.11il$naliz41tion.
Daring their 12 -%ear g41ver11inK 1whicrhip %tills flit-
Independents. Parr Ihr Smial Denl4wr.11s put h�s
rmpha�i% fill a planned rce1141rra% hill �In�ss(
m(m41mic irfi,rm within flit� etisfinq free t-nlrrpsix�
%%%tem. The% suplr,rlell Nal. Xmrnunrnl'� anli
influliortan pnrrruu d4�.pilr its tall. till a oorkrn It.)
ftste�K41 wi1Kr intnu.r., thu� positing Ihettt.e�1v4�s at a
dhadvanlage in c�41mpelinat; with Ihr 0ininsunis1s for
lulnlr.. allexiancr. The party ha% alms lumm tl fl$r lie ter
Innninx fucdlilim a rt�tlucyyl 14414k week, arld inc�rra,ed
miciul %reurily tviver ge.
In foondKu affair%. lln� Sotdul Dermxrtic Part% has.
�into, 14t7A. Ines Krnerlll% pn -NATO mud has
suitil4rrti'd illy drh'uw' ,11cn�o,tut-nl %%tilt till- l cited
stale,. Fur folio or tao bri4�f period., in the mid 16)51)',,
Illommrr, file' predominant influence of its nalioualsl,
htialiollN 11.11 %sing %Olvvvr(Ivd in pultitlg tilt- part% i;t
41pi4nillim to It(�land', parlivipation in N.V1 anti ill(�
pn�st�nt�4� of V.S. furies ut Keflavik. Again in 1972
then� urn. Indication, 111;11 the� pally s tr;lditiorall\
pn�11'e�slo,rn leatlt-rhip ma%. list taclival political
pnrlt(.,',, edge a%%a% froth ally ,front; t-ntlort-tnt-nt of
o,ti.liltK drfrnst, arrange ment On other issue,, the
Sf :d Dt�Iltl$crllic static"' i. h's, v nitroversial. The
party suppoorh rttetuioon of Iceland's fishing limits. the
In'ngthrttinK of the I'niled Nalil$ns. anti moves
(owanl I: :1st -West detente.
d. Pnn and jinancra
The prinrilrtl oorg;ul 'if the Smial Democratic Party
I the lie %kjavik bail% AlthydhubladhidIt (The Laboor
Palter). Other paper silimortirag tilt- earl% inclutle
Althydhrtmadhurina. ;fit Akun�yri wrAiv. and
SknhiN. an Isaliordhur aeekl%. files(- jonnials operate
ill the red and must 1e assisted with party I'mids. The
Sfoc�i :11 Dvisimrats are in chronic financial difficulty,
will oix�rating e%pt-nas frc(pirialy move ling inc�onu�
fnm all sources.
.5. Organization off Liberals and Leftists
a..11embcrrhip and electoral strength
'I'11e Organization of Liberals and Leflisls (()1.1.)
was formed in November IW9 by :a small group of
dissitlenl labor leaders mud leflist intt-llectual, a a
democratic socialist allernative to misting parties, A,f
the Icelandic left. Its support is drawn predomitimilk
from labor and liberal intcllvc�tual circles critical of tilt-
oPlxrlmtistic 110licies of the Social Dt-tnocralic� Party.
and front Icelanders pt-;sonalk loyal to tilt- part's
founder. Iop filar labor It-ader% I l;umihal Valdimar-
l$tt aural Bjorn jon%som The 01.1, controls outright
only t%%o track unions. t11t- unskilled workers' affiliate
Eining in Unreyri ;foul the Wonwii Labor l.'nion
(Sl$kn). hilt ValditnaMoll and jonsson vwrt a much
more perya%iye influt-nce its past and prem-tit
chairmen. reslx�c�ti%el\. of Ilw Isowvrful Icelandic
Federation of Labor.
In the two national and municipal cicc�loral c�onte"ts
--rote 1SAW the 01.1. performed imexpec�leclIv well.
(Iuic�kly establishing itself as a signific� :u11 politic-a)
fort-(� for the fifth major party. '1'ht- OLL. in 1910, won
rtntnic�ipal conned representation in most of tilt- larger
t�ilim 11v% kjayik. Akur(�%ri. Kopayogur. and :\krwiv%�
alsilt- rt-veiying ti.", of the total %otc. The fol-
lonintt %car, in it, first .0him elections. tilt- part\
ki
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again accomplished the unexpected, winning 90'i, of
the vote and five seats in the Milling, and finishing
only 1.5 percentage points behind the old -line Social
Democratic Pairty. In addition to the urban centers
mentioned above, the party enjoys strong support in
the Westfjords District, home of Valdintarsson's
extensive and influential family; in 1971, the
northwest corner of Iceland delivered 24.3% of its
votes to the OL.L Nationwide, the party's success has
been largely at the expense of the dec!ining Social
Democrats, although to it lesser extent the PA and the
Progressives have also suffered inroads.
b. Organization and leadership
At its Founding convention, attended by over I(H)
delegates front all parts of the country, the 01A,
elected a IOU- member party council and an I1 -man
executive committee. The convention also elected a
part\� chairman, vice chairman, and chairman of the
executive committee. The OLI, held its second
convention in October 1972.
The OLI, is essentially the personal creation of
party chairman Valclinutrsson, for years it formidable
figure in labor and it colorful and unpredictable
political maverick. While: chairman of the Social
Democratic Party in 1954, he and his leftwing
followers broke away to join the PA, in an effort to
expand his political base. [n 1969 he left the PA while
serving as chairman, having failed to break the
Communist domination of that organization.
Valdimarsson's critics view the OLL as simply his
personal vehicle for regaining control of the Social
Democratic Part\'. Lie has in fact worked toward that
end under the banner of unification of the nom-
Communist left. At the OI,L convention in 1972 he
won endorsement of a resolution calling for eventual
merger with the Social Democrats, despite it serious rift
with the party's more doctrinaire leftists.
c. Programs and policies
The OLI, is it reformist social democratic part\�,
patterned ideologically after parties in mainland
Scandinavia. Its initial political resolution called for
central economic planning, the abolition of direct
taxation, lower housing costs, expansion of education,
moderate wage increases, and greater worker
participation in Icelandic industry. It opposed
nationalization, however, in favor of a mix of private,
cooperative, and state enterprises. On international
economic issues the party took it favorable stand on
European trade Cooperation aind on foreign capita!
investment in Iceland. The party's defense policy
18
called for the withdrawal of U.S. forces from Iceland
and it referendtlnl to (lecicle on continued membership
in NA'T'O. Since entering the government in 1971,
however, the 01.1, has not pursued its convention
rhetoric on the defense issues, seeking perhaps to
preserve its fleedoin to compromise eventually on the
matter with the snore pro Western Social Democratic
Pa rt y.
d. Press and finances
The primary organ of the 01,1, has been the
Reykjavik weekly, Nyll Lard. During the summer of
1972, however, the radical left wing nnanaged to seize
editorial control of the paper, compelling Valclinlar-
sson and the majority of the OLL to. fall back upon
'I'hjodmal, a small party paper which was tieing
published in the Vest mannaeyjar islands. Neither
publication enjoys it large circulation. Although
cletailecl information oil party finances is unavailable,
resources appear quite linlited.
6. Pressure groups
Ttic relatively recent modernization and con-
comitant specialization of the previously unclifferenti-
atecl rural society have given rise to pressure groups
representing specific economic and social interests. In
many instances their leadership and that of political
parties have been closely interlocked. The principal
groups of the early 1970's represent labor,
management, and the cooperative societies.
a. Labor
The Icelandic Federation of Labor, the main labor
organization, is also the most important pressure
group. From 1954, when the Communists replaced the
Social Democrats as the dominating force in the IFL,
until democratic elements regained control in 1968,
the federation was a major battleground for the
political parties, with the Communists and their
allies �the dissiclent Social Democrats and often the
Progressives arrayed against the Social Democratic
trade unionists and labor elements of the Inde-
pendence Party. In recent years, however, such
factional infighting has subsided, as all parties
cooperate more consistently within the labor
movement. The IFL, with more than 10,(M members
in 133 component unions is organized nationally and
locally. Its main source of iwwer as it pressure group is
its function as a coordinating center for its component
unions in national collective bargaining. On several
occasions it has succeeded through nationwide drives
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in obtaining wage increases and improved working
conditions. "rile IFL is affiliated with the Interna-
tional Confederation of Free Trade Unions.
Less important than the IFL are two other labor
pressure groups: the Federation of State and
Municipal Employees and the Federation of Fishing
Seamen of Iceland. Of the two, pressure by the former,
in Which the largest groups are controlled by the 1
1111(1 the Independence and 1rogressive Parties, has
resulted in wage increases for its members
commensurate with those wcn by IFI, unions. "1
latter is dominated by the Independence and Social
Democratic Parties.
b. Management
The principal organization representing the interests
of management is the National Association of
Icelandic Employers. With an influence conunensu-
rate with that of the IFL, it exerts considerable power,
partly because its leadership interlocks with that of the
Independence Party, and the great bulk of its
membership is from that party. Other organizations
representing the interests of employers arc the
National Association of Icelatclic Industries, the
Agricultural Association of Iceland, the Fisheries
Association of Iceland, the Association of Icelandic
Boat and Trawler Owners, and the t'rtiot of Icelandic
Fishing Vessel Owners. All but one of these are
connected with or draw most of their members from
the Independence Party; the majority of the
membership of the Agricultural Association is
Progressive.
e. Cooperatives
"ncc Federation of Icelandic Cooperative Societies
has long been a major force in internal affairs and
exerts particular influence when the Progressive Party,
with which it is closely connected, has governmental
responsibility. An important objective is to influence
government policy in the interests of the cooperatives
as against those of private commercial firms.
Typically, many of its executive leaders arc also
members of the central committee of the Progressive
Part-. The membership of the federation includes
sonic 40,000 heads of family who belong to the
cooperatives.
d. Youth
Influence groups of less importance, particularly
among Icelandic youth, include tl)# Vardberg Vaka,
and Vcrdandi societies and the Student Society of the
University of Iceland. The Vardberg Society is the
Icclanclic affiliate of the Atlantic Political Youth
Association and has it membership drawn front all
democratic parties. At active propagandist in favor of
cooperation with NATO and the Atlantic denuc�-
racies, the societ\, often ccunteracls C:ommunisl
uurnpaigns against the Iceland Defense Forces. Ili
1968 its Reykjavik chapter numberecl sonic -1:50
members under 40 cars of age. The society also has
chapters in Akinrcyri, Ilafnarfjordhur, Keflavik-,
Kopavogur, Armies, and several other towns. The
Student Society of the University of Iceland is a
political association of significance both as a forttnn for
and an instrument for molding stu(lent opinion. In
recent years control of the societ\ has been closely
contested b\, two evenly matched groups, the Vaki
Society, which associates itself with the Independence
Party, and Vcrdandi, a student alliance of leftist
partisans of the other leading parties. Latch the leftist
group has gained the upper hand.
7. Electoral procedures
The constitntion provides that all citizens 20 years
of age or older who have hecn residents of Iceland for
the 5 wars preceding the election, who have no
criminal record, and who are of sound mind may vote
M national elections. The constitutio also requires a
voter to have an unblemished character and to be
financially responsible for his affairs; it married
woman holding property jointly with her husband is
considered financially responsible: for this purpose. By
law. elections to the Ahling nnust be held at least
every fourth year. After the passage of an
constitutional amendment, the Althing must be
dissolved by presidential decree, and new elections
rnust be called. I ?lections may also be held if the
government falls and a new one cannot be formed.
Any citizen eligible to vote in Althin/; elections may he
it candidate for election to it, except a small, special
category of judges. Between 1942 and August 1959 the
Althing consisted of 52 numbers. of w bon, .11 were
directly elected fronn 28 constituencies, and II
received supplementary seats to assure proportional
representation of the parties. The population trend
away from the rural districts and to the larger towns
resulted in a subslamtiA overrepresentation of tbe rural
areas. This increasingly benefited the Progressive
Party. enabling it in the 1956 elections to obtain one
third of the Althing scats. with less than Wi of the
popular vote. In order to correct this inadequac the
other three major parties in mid -1959 cooperated in
affecting all amendment to the Constitution which
enlarged the Althing to 60 members. The 28
constituencies were reduced to eight larger ones
electing a total of 49 members: the I I supplementary
19
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seats were retahwd and distributed proporliowitely
ammig those parties which elected at Ie;4st one
member to the� Althing.
iVlunic�ip.el elections must be held every �1 years for
the town councils of the 1.1 iueorporaWd towns. of till-
unincorported towns, and for the district councils.
Statutes governing participation in these electiom
parallel the constitutional provisions regulating the
rllthim elections, except that residence in leeland for
5 consecutive years immediately preceding till-
elections is not re(luired.
Elections for President are theoretically held oil the
last Sunday of June of every fourth year. According, to
the Cotstitution, any male :33 gars of age or older
who is eligible to vote in the Althig elections and who
has the formal of at least I..)IN) ail
not more tliim :3.(X)0 eligible voters (list rilritted
proportionately over the country ma) stand as a
candidate for tli office. The President is elected
directly by those entitled to vote in the :1lthing
elections; only a plurality of votes is necessary to will.
If there is only one candidate for the position, us is
usually the case, no balloting is necessary. ail the
candidate is declared elected I n president of till-
Supreme Court. Since the Icelandic parliamentary
system, like systems in continential Semidinayia.
Places ultimate executive authority in :e Cabinet
responsible to the legislative body, the office of (:hief
Executive is largely ceremonial.
In Iceland the ballot is secret. Each polling place
has an election hoard, which has jurisdiefloo over dw
voting. In order to thwart any attempts by the parties
to influence voters in the inun�diate vicinity of the
polls, tile law stipulates that no one tray make
speeches or advertise the parties in any a;e) at
buildings housing the polling stations or till streets
leading to them. No loudspeakers may be rued for
propaganda while the polls are open. 'I'we inspedor%
for each party represented on I e ballot are in
attendance to guard against irregularities. A higher
electoral hoard opens the� ballots, counts the votes, and
decides all disputed cases. Iaec�tond participation is
normally greatest in national elections. In June 1971.
89.0 'li of the registered voters participated. a level
which has not varied significantly during the postwar
period. This high degree of participation is consistent
throughout the various areas of Iceland, despite the
isolation of some of its rural sections.
D. National policies (C)
National policies reflect the relatively recent
emergence of Iceland from a position of isolation to
participation in world affairs. This phenomenon has
?0
becu marked b% tae major mends. which are lee at,
(�114.111 ;lntilhrtical. ()Ill' has IN�e�h Ih1� re1111e- 1111.111 of a
national self -e (mciou+ue.+. it pride in Ihe irldiKrnrus
cultun� :uemt11pantr(I Irk :e yagn� %1 1 111�
otlivr Isis !N�e�s :111 orientation Howard the oswdo.
world. its suevessf ll efforts to rare Iew�ls ef Imlig
bnntghl the� Icelmidic IN�opir into clowt mnt:ecl with
the Ixlitic:el and ecenontic ilMitutimns and adyallurd
Ivelmological processes of Weslern Ei mo1w. In
additioll. the thm:el off Soviet agKmsimn IN�erssilale�e1
coolN�ration with other Wr%tem hunIN�an natiesl. ail
the ('sited tilalrs.
Douro -stir INlieir, hay- for Ihe� most part lN�rr1
Bite ewd sustaining rarid re�enmmie� v%piln�iort
soul insuring 11111 :ell sectors of s4Wirt% Itarliciltalr in
the growing national presIN�ril%. To Ihi. rnl.
goyrrnna�nls hayl- alle�mpte�d (m remtrol infl :tlionar%
pn�sun�.. while (marring rllrut.imn :end diyrnifi.:di40n
of till- prolluethe base. ledmidic forviK1t INlir% is
din�ctrd toward mainlvitimer off frirndh n�latim e. with
all c�4nntrir.. rspet-LI11% its fellow Seasdillmiat% and
its principal Irmling partill'M lerland has also.mutehl
international support for t-muissime mf its l-lclnsivl-
fishing jurisdirtim e. Oefruse� INlic'. ha. IN�e�tt 11111110.1
(stint% orirslyd Imaarel :C'I'O'. dl-fi�ns4� syartn
thnntgh the� ave�e�plam-c of U.S. ordrs urn Ie,�I:nNlic
soil. Allhoutth subject to .401114� nNNlification by till-
current center -left gmrinntrnl. Illis Ixlic% sill
pmha!h remain r- owntial1% 11nch;ulgrd. a� it ha� for
store� th:ut 11140 drc:ule. de�.pilr enra.i40tt:ell) strrrtg
i�ol :eti4011i.t soil rn�ntrali.l �rstinamt.
I. Domestic policy
Icel :utd'. rc�eno111% si1N�e� Wmrld War It has 6.4.11
characterized by IN�rsiste�nl inflatiomir% pesos� as i t
result of Ihe avedereted rate of milimnal dewifilu .em.
a high IM 4-1 of 14N�ial wrlfarl- r1IN�ndilur�s. asd
orgimized lalNOr �11(Yv%% in s inning IN�rimlic w.,go
increases through strikes or till- tit wat of .hike..
continuing rim- in wage and eml -mf- living has
made for high prWillditiu 010%. which parlicnl :er1%
affect the rlixrt indmtrirs I% impairing (heir alilit
to comlx�ty is world markets. '140 assist Ihesr isduariv
notably the fisheries industry. tin which Ihe e�4nmin
(Irlx�s(I. for more than four- fifths of Imthel v\Ixr1s. Ihe
govenunenl prmyidrs .u!sidir.. paid for b% high duties
on certain categories of imlxrls. The gmrnunml
systent of prixItiviimll a n d cow- tner -prier snlsidim has
benefited certain large ecomimic grout.. thus adding
11) till- infl ationary prrssurr Another elmuctit
intensifying Ilte�st. pn�..un�s is till- system of Ding
wage� and farm prier. to Ihe crst mf- living indey.
Despite contini�d se�ye�rl- inflation. till- ct -rater -left
coalition which came to Ixwl-r in jut% 1971 Inwhoatt
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h�s 111CIth:tti4111 111:111 ih nuo� t, IIm. r%alit4- 1Ott t1�sor
to ;rgiple niIII 1!1111 hsur. pn�f4-rthlg 111114-41(1 to
t�(111cr111 till I. Oslo hnpnr %1111u�nh in ttagv%. arlf .6n�. alul
atrking u, fill Ill 11r11.. 1161%hig linx �1:1111a�(1 iht-lf life-
c11anrliion 1f 1114- t%orki11g 111:111. till- Istrwill
goven iment Ilas Ix�e11 "�1114-1 :1111 to n�.1r1in 1:1101rr'.
Ix�niai4111 41the. for higher 1%1%, which 1%t-r 1114- 1e- :111
111114 been .661111h14eitig din�:11 lot IN %:Ililgl
:11141 tlr% rlopnil�111. 111 19, I. the pomerf ll
Inlatttlle rederltio11 of 1.:1114 ttith ginernnivell
.6ssistilil e. inicl11dr(I a 2.14-:14- aagr :uul Ixml-fil. li:a 1
%ith managertirtit. 1'114- pnr%ision� of 111x1 Iua�t
higher ,%ages. a slurtrr %%fork wt�(�k. 1o11gl-r %a(:1tifi11..
+11141 hirn�.6srtl welfare benefit.- ha%4-1x�ryx�I11at(�tl the
wagr- pricy .pird. Xer 11:1. Ihr atlrnitli.t til ioil Ix�t�11
aillhig to :11114-1% fisc:ll n4r11111� Its till vt�41111919%
11110get 411111x%% have 41111n11t n�%ellu(�.. !%Mile tit%
ilicri -aws h ave proved irlatll-g11ale to relimt.
inflationar% pn�..11n�..
111 .111 eiforl to redijer Inland'% ptrt:Iriou.
ovenlrlx�mlrnn fill fist- 111l.table fishing h0wir%. Ihr
prewid govenlrnent volltinue% to l,tarn11agr alt4-rnate
earner% of foreign t-u�h:ulgr. Further d4-veloptnr11l of
indr(selectrie Ixrtenti:ll. 111 parlicul:lr. is 1x�11111
pnlmolr( :I. an hulunrneilt 141 11 11� x14-4- itulllslrializa�
,ion. Although Will till- c -4m11n4-n+� an0 in(l11.tri1�.
mhii.trir. .6n� held by Ihr PA. Ih4- go%enmu�11t hat
eurmlrcl .6 grnerilll% fawr lliv wrlvillile to foreign
hrve0or.. 1x11.11111 hicloling at aillissgsst�1. in c�t�rtaill
dre11mslatoem to acYrpt nlaj41ril l,nitml 14-1 foreign
firm..
L Foreign policy
Shlur .6Ixolt 1950 lerl:,ful has 111or%e(I a long clista11t�(�
1`111111 it� age -41141 Ixr.iliml :1s ,hl- ��hrrnlil of 1114. \orlh
Allaidic t(r1t:1n1 i t lxlic�.. of Ixlitic:ll. 1�t�lmomic.:111t1
(1(�fel1w c(rllalxrrition t%ith Ihr West. Otrr the .;fine
Iseriml Itrlantl has .(light to maintain a high Ir%4-1 of
f(irrig11 Ingle and to n�(Ir�s its ad%rrst� tr.,fl4- 1e-:d:ltmc(�.
The pn�.rnt govl-rnnll�rit 1111c�1111Ir:1s.l,. the- 1.1 .61111'.
Irmlili41n:dlr .11141114-4- i.41lalionisl element�. but .111((�
its f41n11a1i4111 Ihen� hat Ix�e11 site emierrte(I dri%4- to
n11rdif% the 4111ttanl hlkissg lionlure. :(side frotil
(:tetnr11ullhf pn�1�ur1 to ref 1,.1� curn�nt s(�c�uri11
arr.aigt-11lrn1s.
a. Trade
Since Iceland 11.61 few 11alur11 n�anln�(�. other 111.111
fish, it (Irl)(�nd.lu.lvily 011 Giwigss Insole for mtnl of li
InWe n(�tr..iti(�. of Mr. Fish .11111 fish pnxlue1% an- Ihr
main i-xlxrrts (leirnnining tilt- cvntr.e of thil Irltle.
Aftrr Wtorl(I War 11 tilt- Soviet 1111x� rlt)(�rged :1% a matter
Irl(litls; p;lrin4-r. ;\Il11utlu11 trade- %%till life- bloc (Irving
tilt. IN�ti1rl 11111 11111 (I4-11111111 al at .Ivatlt role, it
inll-Mlitlr1111% 111ade ill) a v11r% sizable InIurlimi of
tile- uhfile. Such triple- %%it% %11110all1i;11 from W11 to
191 tv114-11 1114. :onu11mmi�h P.6rliciPuh�tl in the-
govrfiusse11l. It 111 dwindled to lhinor pr1rlrrtions
hum again irlcrea.4-tl 111:Irke(11% :Iflf.r 19.52. w1wil
I(�t�Luul'� 4-x11.11.14111 of i1% fisheriv% vtoservatimi limit
fr41m :3141.1 milm brntghl a1xu11 a l'. K. bass oil imports
of Ive- L111dit� ived fish. (The 11111il %%.I% rx14-11c14-d to 12
11111 ill IIJI)S and to a( 11lill,s 111 lili2. Another factor
;1ff"'lissg Il�t�I:uulic 4-xlxrrt. 1t :1s the rise- in Pn(luelio11
c(ra.411 the- resih of pr1�..11m from life- tra(14- unions for
hight-r 1%ag1�.: 1110�4� (�11111 11�x4114-11 111411 (4-%1111 Th al
4-xlx111 pntluch n�quin�tl �uhsitlie� 4-o cyolinur to be-
1rinlx�titi%4- ill 11on4 :nnanu11isl markos. Bloc tra(14-
11.111ai111�11 al a high Ir%11) Ihroligh lusty. 1%111111 it 111:4-114-
I'll 111(re Ih:m :3:3'1 of IvvI:rnd'% total tra(Iv. Since that
time' it h.1. s1l:ulih 114-cli11t-d. droPPtng from iwarl%
23'. in Mill. to I-I" in 61(1
15. :111(1 1111 in M I. In the
lall4-r war. trade- tvilh tilt- V.S.S.H. its4-lf c�ominise(I no
1114111� th;lll i of I(elallthe iiiilxrt. awl S'r 41f its
4-11xrt1. In t�lrlmtrast. (hl, t`Irill -(l S1.114-. 11.1s bt-tl,fm� it
lsscrvil%issgl% imixrlaw market for Ic(�I:uulic Pnxlucl..
art�111111issg for 11Ptt;rrd. of :311'r of all 4-1Porls 111 ret -vid
1 va n.
0IW 11;1.4111 for Ih4-(Iedhir in Irml4- uilh tilt- bloc�
Ixr11 Ilie Ix�nist11111 vfforl of The- gover11r114-nt to re(Issct-
assd kvvp it al a 14-%(�) that Mould 11lissinmizi. Ict-lancl s
%11111erabilit% to Soviet polilic�al .111(1 veollonmic�
Pn�.s11n�.. C1xxl ltorlcl market% :,fill high prict-. for
froz(�n fi.11 fillt-l% have redlitrll Icelaticlic intere-st in
dr:ditig "ill' the t'.S.S.H. :111(1 Ea.teru Eurlx� Imdt-r
trading agrt-4-nm(�nls and fill a m illemwertible c�urretiv%
b:lki�. .%Ilolller favlor lea, Ix�t-11 4111)4--�� tr :all, with
1`4-slrrn nations as a rt-s,fll of the tncreasitig
Itlx�r.11iiatiou of Inla11(lic imiurts from those- 11:rtiolis
Mill 41. t' of Ilic four (levahiations of tilt-
krona ,luring the 19110., tlbich 1;:1%4- Icvlancl a rate- of
4-Ullimigr more falor1614- Its its (�%Ports. 'flit- 4-ntr% of
Ic(�land into Iht- Eurolw�:In Five 'I'ra(14- Association
(1�:I�" I':% I in W70 alsl 4-ase(I lariff barriem to I(elmidic�
Pnxluct..
Oil Ihr other haml. -4meral factors have linult-d tilt-
gromill of Inland'. Irmile 1%I111 Iht- 11't-st .1nO
4-ss(�1r11rage(l a cerlain amount of Isle- with Eastenl
Eur(elx�. O"4- is Ih4- (liffic�ulty ill proc�4-ssilig Icelan(lic-
Pnxl11cts act-14(litlg to the high- quality standards
(I(�mauded in We.lem markets. A sevowl is 1114- lack of
itiv(�.Inu�nt capital. which, touplt-(I with traditional
distnlsl Off fon�ig11 parlit�ipation in tilt- business
viarrinis(�.. ha% linlite(l in(ImIrial vxpan. ion :1
diVenificalilo. Another factor is tilt- short -range
21
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business sense of the leelaoders. Although most of the
business community is aware that Soviet track policy
is often motivated by political considerations, it nnay
be enticed by short-range profits and tends to
disregard the negative long -range effect on developing
Western markets.
b. Economic assistance
U.S. economic aid to Iceland includes some US$60
million extended under the European Recovery
Program and its successor agencies, several millions
more furnished as loans from titer International Bank
for Reconstruction and Developnurnl (113111)), and
agricultural products, such as flour, fevdgrains, and
tobacco, provided on favorable credit teens under
P1,480 agreements concluded annually since 1937.
Three developmental projects involving the
investment of foreign capital have assunned major
importance during the last decade, primarily because
of the contribution they have made to the expansion
and diversification of Icelandic industry. They are also
significant in that they represent it growing realization
among Icelanders that foreign investment is essential
for the economy. One is the large Burfell hydroelectric
power installation located cast of Reykjavik. which
greatly expanded generating capacity. 'The4irst stage
of this project was completed it; 1969, its US$40
million cost jointly financed by an 113111) loan and by
private foreign and domestic soirees. Another is the
related aluminum snnelter 6ke4oWd at Straumsvik, near
Ilafnarfjordhur, at it cost of some $3.5 million for the
first stage. A Swiss firm owns and operates the smelter,
which gets its power from the hydroelectric
installation. So ahundrnt and cheap is this energy,
that the operation, dependent as it is on imported
bauxite, is nonetheless profitable. A third is it
diatomite plant at Myvattt lake in northern Iceland,
in which it U.S. firn participates with the Icelandic
Government. During 1972 it crosswinds runway was
begun at the Keflavik International Airport. An
additional project in the offing is the development of it
150- megawatt hydroelectric installation at Sigalda.
The former is of political as well as economic
significance, since the decision in 1972 to accept U.S.
offers to finance the runway project was taken despite
the strenuous objections of the PA.
c. International organizations
Iceland joined the United Nations in 1946 and in
that body has generally supported the policies of the
United States. Iceland also belongs to a number of
U.N, specialized 4& inrltltjtlitl the International
Civil Aviation Organization, the 1 "Ood and Agriculture
a1
Organization, the World Ilealth Organization, the
Intenuttional Labor Organization, the Educational,
Scientific, and Cultural Organization, IBRD, and the
International Monetary Fund. Oil a regional level,
Iceland is it member of the Organization for Economic
Cooperation and Development and NA'T'O; to NA'T'O
it contributes facilities for joint defense under the 1931
Defense Agreement with the United States. Iceland,
together with Norway, Sweden, Denmark, and
Finland, participates in Scandinavian economic and
social collaboration through the Nordic Council, an
advisory body to the parliaments of those five
countries. In it major departure from its traditionally
aloof economic policy, Iceland joined EFTA in 1970.
The government continues to eschew full membership
in the more tightly knit EC, however. As a non
applicant for EC membership, Iceland signed it trade
agreement with the EC in July 1972 calling for a
phased redaction of duties on manufactured and most
fish products. Activation of this Icelandic -EC
agreement in 1973 is contingent on "an acceptable
solution to the problems posed by Iceland's unilateral
extension of its fishing limits to 50 miles."
d. Fishing limits
Survival and prosperity have long been inextricably
bound to the fishing industry; Iceland is still heavily
dependent for vital export earnings on the catch from
the rich fisheries adjacent to its shores. In consequence
the islanders arc almost to a rnan intent on the
conservation and reservation to themselves of this
indispensible resource. Iceland has thrice extended the
boundaries of its exclusive fishing jurisdiction since
1901, when Denmark and the United Kingdom set the
limit at 3 nautical miles. The first extension, in 1932,
pushed the limit to 4 miles to coincide: with Iceland':;
territorial sea, which has remained unchanged since
1859. In 1938, Iceland again enlarged the breadth of
its exclusive fishing; belt from 4 to 12 miles. This action
was bitterly resisted by foreign fishermen, chiefly
British and Nest German, who had fished Icelandic
waters for centuries. The resulting "Cod War'
included British economic sanctions against Iceland as
well as numerous angry encounters between the
Icelandic Coast Guard and intruding trawlers. Iceland
finally prevailed in 1961, winning international
recognition for its 12 -mile limit. Ten years later, a
further extension of Iceland's fishing limits became un
issue during the election campaign of 1971, stimulated
by renewed fears that overfishing was rapidly
depleting fish stocks. Since all parties supported some
farm of extension, the debate centered on when and
how it should he accomplished. Advocates of
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Greenland Sea
Grim Iy
N Hvalbakur
Reykjavik
O vestmannaeyiar,,
North t/antic Ocean Fishing Limits
50 Nautical miles
12 Nautical miles
100 Fathom line
5011"73
FIGURE 7. Expanding fishing limits (U /OU)
immediate unilateral action, led by the militant PA,
won the argument and the election. The following
year, on I September 1972, Iceland abrogated the
accords of 1961 and extended its exclusive fishing
jurisdiction to 50 nautical miles, encompassing the
t greater part of the continental shelf and its associated
fishing hanks (Fignrc 7). Strong British and German
reactions opened the prospect of it renewed Cod "War
and the likelihood of it protracted and difficult period
of negotiation.
e. Relations with other countries
(I United States Relations with the United States
have been good, despite frictions caused by the
stationing of U.S. military personnel in Iceland,
especially between 1951 and 1958. The economic
benefits that have flowed from defense activities and
the generally good discipline of the military forces
have greatly reduced the "impact problem.' Defense
collaboration with the United, States has been the
major problem in U.S. Icelandic relations since 1941
and especially since 1951, when the defense agreement
came into effect. The parties in the present
90ve1 campaigned on it pledge to negotiate the
withdrawal of U.S. fore, by 1975, bill it nr're
likely that revision rather than termination of the 1931
agreement will ensue. Aside from the actual presence
of U.S. forces in the country, most of the specific
difficulties which appeared in the course of the
defense collaboration have been been resolved or have
gone as far toward resolution as can he expected. At
least one issue reinains: the television broadcasts from
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the U S. base at Kvfl:tylk. These broadcasts have Bevil
attacked by ntinopponents of the hale as well as by
opponents, on the grounds that they are undermining
Icelandic cuiture. Efforts to compromise by mstricting
TV broadcasts to the Keflavik base have not been
successful. Moreover, attempts by intellectual and
nationalist elements favoring elimination of tit( base
broadcasts have encountered strong opposition from
the thousands of viewers in the populous Reykjavik
area who enjoy the U.S. programs as a complement to
the limited fare available from the national network.
(2) Scandinavia� Iceland maintains cordial
relations with the other Nordic countries. Ties arc
closest with Norway. which furnished Iceland's first
settlers in the 9th century. Icel anders generally have
great respect for Sweden and Finlawl. Toward
Denmark there is still some Fensitiyity because of till
experience of Danish rule from 1380 to 1918. Already
by the 15th century, but notably after 1662, the
Danish suzerains exploited Icelanders economically
and treated the country as it backward if not forgotten
prov ince. Onl% after the mid -19th century. when the
struggle for independence was already well underway.
did the Danish Government start to show concern for
Icelandic well- being. Iceland is sensitive to the foreign
policy positions of its fellow Scandinavians and
frequently acts in concert with them, especially on
matters of peripheral concern to Icelandic interests.
(3) Others �A major factor assisting the main-
tenance of good relation� with the other Western
European countries has been the high level of trade
with the EC and EFTA groups, which now acamnt
for nearly 60cli of Iceland's external trade. 'Trade with
Communist countries is the principal basis for the
diplomatic relations which Iceland has with till, U.S.S.R.. Poland, Czechoslovakia. Romania. Bulgaria.
Hungary, and Cuba. East Germany maintains it trade
representative in Reykjavik. Iceland established
diplomatic relations with the People's Republic of
China in December 1971. the last Nordic ceumtrw to
do so.
3. Defense policy
The shift in Iceland's basic foreign policy from
neutrality to association with the West brought with it
the nee(I for a contribution to it ew)pertive defense
system. Since Iceland maintain% till military
estublohriiullt. this contribution has been expressed in
terms of providing land for the erection of defense
facilities. The present defense arrangements with the
United States date from Jul� 1911, when the United
States and Iceland concluded a defense agreement
24
.which provided for the protection of the� isl by V.S.
forces for the duration of World War 11 Ind 6 m6 nths
thereafter. The U.S. ttoop. arriw�(1 in tl; kanle� month
anal took over from the British, wlsAuld landed till
occupation force in April 19.10. As the date for
withdrawal approached, the neev%sily for tnaintaininy.
U.S. troops in Europe- made it itnpx�rative for the
United States to negotiate an allel!,late arrangement
that would continue to stake facilities inn Iceland
avuiluhll, for their support. 'I'll(- Keflavik Airport
Agreement. concluded in 19.16. provid(�d for till-
withdrawal of all Usti. forays from lechand in April
19.17, tit(� operation of the airfield by it viviliall
contractor to ;he U.S. Air Force. and for training
Ic'elande'rs to take over the opx�ration of the airport.
These annmittnents ;were substantially fo-lfilled.
Upon joining NATO in 1919. It -land made the
specific reservation that foreign milit:. r forces world
not be stationed on its soil in px aa�tiur.�. The
government dropped this reservation in 1931. when.
against it backgroinid of the� Korean conflict and it
deteriorating international situation, it concluded it
new defense agreement %with the United States ender
NATO auspices. This agreement. which supx�rseded
the Keflavik Airport Agreernenl. provided for the
temporary presence of U.S. force in Iceland to protect
Ill(- area as required by the needs of the international
situation. Under Article *II either signator% tnac give
notice of its intent to revise or terminate the agreement
at any tithe. and 6 months :after the� elate of such
declaration of intent. either part% is free to give notice
of termination of the agreement. which kill then
expire I year after till- date of notice. At the lime
notice is given to the other part, the nolifier must also
inform the NATO Council. thereb% requesting
recurntnl,ndations by the Council on the ullinlak'
disposition of the installations. Its rec�onunvildations.
however. have no binding fore on the parties. In May
1951 the Ice land Defense Fort-(-. comprising U.S.
Arm% Navy. and Air Force personnel under air force
command. arrived in Iceland and took up their station
at the base at Keflavik.
By 195.1 a combination of development'. including
social repe'rc'ussions resulting front the "inlp ac�t" of a
wlathoj largo 114ttt1er of militar% and civilian
personnel on the� small Icelandic population and on its
culture. :a severe drain on hwal lalx)r caused by defense
construction, and pxpular t; iltmdisl pr-,stire� +till the
government. led to revision out the defense aermill �nt.
It placed seven� limitations urn the tnlovellicut ui U.S.
military and vivilia n personnel outside "agr�l,d areas"
and pledged that has� c proje %(laid not
absorb such numlx�rs of native workers as Ill emale a
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1111ot shortage in Icelandic industries. In Is).% the
defense arrallgelllents agilill became it 111i1jor political
issue in Ict�huul- Political maneuvering U11 the part of
the 1'rogress1ve. Cotnnnulist, atltl Social Democratic
parties led the Althing in Xlareh to pass it resolution
opposed only by the Independence Party, which, after
r"lffirnling Iceland's "joint stand" with its NATO
allies, called for the withdrawal of the U.S. forces from
the country. 'Then, in )urn� the \1illistry of Foreign
Affairs gave notice to the United States a nd the NA'T'O
Council tinder Article 1'll of the defense agreement
that Iceland wished to begin negotiations for revising
the agreement. The :111hing resolution was not,
however, inlplenu�nte�d by the coalition government
which took office follotying the j oule 195ti elections.
The stutus quo teas then cO"Wiuell in December by
nett arrangements behveen tiv- L sited States and
Iceland, which recognized the need for the continued
presence of the U.S. forces in the country, and
provided for the establishment of an Iceland -U.S.
Standing Croup to study defense needs. The:cafter,
public opp oWtion to the base at Keflavik subsided,
remaining at i t relatively low ebb from 19.39 to 1971
during the tenure of a conservative. Independence -led
administration. The presence of foreign troops
remained far from popular, however. with Com-
munish. isolationists. and antinnilitarist sectors of the
pepulace in adamant opposition.
The status of the Iceland Defense Forces was
resurrected as it major political issue during the
national electoral campaign of 197 1.One plank of the
Progressive Party platform called for a staged
%%ithdrawal of the forces %within �1 years, a poi+ ion
reiterated by the Progressive -led center -left coalition
on assuming office in )I fly of that year. Subsequently,
however. despite political rhetoric Intl persistent
pressure from its PA partners, the Progressive
lvadmbip has retreated warily from this position. The
foreign minister and other Progressive Part ministers
have apparently become cenvinced that while a
defense n�viety is essential, and sonic chances m;v 6-
required. all IDF presence in some form continues to
be necessary for national security.
Iceland has no civil defense establishment, and
relics on NA'T'O and the Iceland Defense Forces for the
protection of the pmpulation. A civil defense law
passed in November 1962 gave the Minister of justice
and Ecclesiastical Affairs jurisdiction over this field
ant] provided for the establishment of both a civil
defense council ant) civil defense committees in the
various municipalities. These committees are
respxmsible for setting up an alert system, organizing
first aid and training workers, constructing public
shelters, and ensuring that private enterprises take
steps to provide safety installations. 'There has been no
indication that the program has developed beyond the
()Iallning stagy.
4. Popular attitudes toward national policies
The open, democratic nature of their society, as well
as the Icelanders' pragmatic predilection for
cooperation and compromise, insure that government
policies generally reflect the attitudes and aspirations
of the governed. Thus, Icelanders are nearly
tlnatlimous in their support of current governmental
troves to extend fishing limits. Conversely, at least
partly in response to public opinion, the present
adnii [list aation appears to have edged away from its
early pledge to terminate the defense agreement of
19-31. Most Icelanders remain basically pro Western in
their outlook, and, while regarding the establishment
of the U.S. base on Icelandic soil as undesirable.
accept the Iceland Defense Forces as a necessity. The
public appears to be reserving judgment on economic
policies. Increases in wages and benefits have proved
popular, but many fear the consequences of
aggravated inflationary pressures. With regard to
industrial detelopment, many support efforts to
obtain foreign economic assistance but share
administration concerns that such aid not be used for
economic exploitation of the country.
E. Threats to government stability (C)
1. Discontent and dissidence
Icelandic society is remarkably free from deep
scated social or economic grievances which could
threaten political stability. United by a millennium of
shared isolation and molded by the common struggle
to survive, these fete, hard\ islanders have evolved a
tightly knit, yet democratic social order suited both to
their vigorous individualism and to their complemen-
tary penchant for cooperative endeavor. There are no
significant racial, linguistic, or religious minorities, nor
are there important class or regional differences.
Political aWvit� is open and varied, and except for
elements of the extreme left, all parties are committed
to democratic principles. The few fundamentally
divisive political and economic issues are being fully
debated by a highly literate, politically aware
population.
Perhaps the greatest long -term threat to Icelandic
stability is posed by the headlong rush from a rural,
subsistence economy to an affluent urban society.
Despite efforts by intellectuals and traditionalists to
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if
preserve Iceland's unique culture, the impact of
modernization is placing strains oil old values and
traditional goals. Young leelanders, in particular, are
increasingly influenced by the manners and mores of
their contemporaries abroad. A relative few possibly
several hundred, although no precise figures are
available �have adopted political tenets and tactics
reminiscent of the so- called New Left activists of other
Western societies. As yet, these elements constitute
little more than an occasional embarrassment to most
Icelanders; in recent years demonstrators have
occupied the Icelandic Embassy in Stockholm,
disrupted a visit to Reykjavik by the U.S. Secretary of
State, briefly interfered with the Keflavik base
television, and even disturbed the peace of the
Althing, an episode allegedly unprecedented in its
1,000 -year history. Aside from general expressions of
indignation, Icelandic officials normally take a
relaxed and lenient attitude toward such activities,
regarding them as little more than misguided youthful
exuberance.
2. Communist subversion
a. Potential
The only %yell- organized group that could seriously
attempt to undermine democratic processes in Iceland
is the Communist- dominated PA. As the third most
popular political party and the strongest single force in
the labor movement, the PA has a significant power
base and occupies a prominent role in national
political affairs. Moreover, the PA is probably
Iceland's best organized and nimt tightly disciplined
parh rendering its rank and file highly responsive to
central direction.
In the past, the Communist predecessor of the PA
demonstrated a significant capacity for conducting
subversive activities. The violent riots against the
Althing in 1949 at the time Iceland's participation in
NATO was being debated and the somewhat less
dramatic disorders during the strikes of 1955 were
clearly Communist inspired. There is some evidence
indicating that espionage on a small scale is conducted
against the airbase at Keflavik. For the most part,
though, the .party conforms to Icelandic tradition in
avoiding violence and pursues its goals overtly by
legally acceptable means. There has been no evidence
of stockpiling arms or explosive, or of other
preparation for widespread civil disorder or armed
conflict. The Communists are not known to operate it
clandestine organization, but they presumably have
plans to establish one in the remote event their party
were outlawed.
26
b. Influence in organized labor
The ability of the PA and its Communist
predecessor to exert a powerful influence in the labor
movement during the postwar years has been the
principal source of Communist strength and the basis
of in entrenched position in political life. Although
the PA in 1968 lost control of the powerful Icelandic
Federation of Labor, which represents more than
40,000 workers, it .continues to dominate a number of
large and critical member unions. In total, the PA
controls about one -third of the trade unions and exerts
a strr:ng influence in many others. The cornerstone of
its labor support is Iceland's largest single union, the
Union of Unskilled Workers (Dagsbrun), and its
parent body, the Icelandic Federation of Unskilled
Workers. The Communists have controlled Dagsbrun
since 1942.
The Communists used their position in the labor
movement to Carr, out strikes in 19-32 and 19-3:5 which
seriously threatened cc(! .6mic stability and posed a
strong challenge to the authority of the government.
The Communists were not the prime movers in the
19 52 near general strike, but they exerted considerable
influence on its conduct. The government proved
powerless to prevent illegal actions by Communist
directed pickets or,Jo negotiate a compromise, and
finally capitulated to the strikers' demands. The 6-
week strike of March and April 1955, in which 12
unions �nine of them Communist dominated
participated, involved 7,000 workers. Despite the
general unpopularity of the action, the government
was again unable to bring the situation to a swift and
satisfactory conclusion. The Communists demanded
the dissolution of the government and its replacement
by it leftist coalition. The administration eventually
met most of the strikers' economic demands, although
the Communists were unable to attain their principal
Political objective� participation in the government.
The Communists are expected to retain an
influential position in the labor movement, but not to
regain the degree of influence they commanded in the
early 1950's. Many formerly "safe" workers are no
longer inclined to follow unquestioningly the
Communist lead on a number of issues, partly because
of the more effective and aggressive tactics of elements
in the trade unions identified with the Independence
Party. Nonetheless, the Communists strive with some
success to retain much of their image as the true
champions of labor.
c. Influence in government
Despite periodic participation in governing
coalitions, Communists have not infiltrated the
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government to any appreciable extent. tMoreover,
democratic parties have in the past effectively
circumscribed Contununist influence ill foreign affairs
and 'in matters involving national security. As a
member of the center -left coalition formed ill 1971,
however, the PA has worked persistently toward
go'vernmen abrogation of the 1951 defense
agreement, and the Communist Minister of Fisheries
has adopted very tough tactics ill negotiations with
NATO allies West Germany and the United Kingdom
over the extension of Iceland's fishing jurisdiction.
Stick Communist activities have, nevertheless, been
moderated by the desire of the PA to remain in the
government, it policy necessitating frequent compro-
mises of Marxist principles with the coalition's
democratic majority.
Over the years the leftist penctrations of greatest
potential concern have involved communications
organizations. During the 194447 i period, when the
Communists had Cabinet representation, about one
fourth of the employees of the strategic State Postal,
Telephone, and Telegraphic Servicc was Marxist,
although few have been appointed since. More
recently there has been increasing leftist influcnce in
the State Radio Council, which controls broadcasting
Policy and the cultural content of programs. This
influence is reflected in the bias of some ostensibly
impartial public affairs programs, it trend which has
not gone unnoticed by important segments of the
public audience.
cl. Influence among; intellectuals
Communist influence among members of the
intellectual community was widespread during the
1950's. All the literary, art, and theater critics were
Communists or Communist- oriented, and all
Publishing, if it was to receive the acclaim of these
critics, had to be clone through Mal og; Menminn, a
Publishing house operated by it CPI front organiza-
tion. The situation changed suddenly in tLe 1960'x,
however, with the appearance of critics who were not
under Communist influence and the success of a
prominent young writer who had his works printed by
it non Communist publisher. In succeeding years
leftist intellectuals have continued to drift away from
the dogmas and discipline of Communist orthodoxy.
e. Front groups
The most important Communist front organization
is the PA itself, which despite its conversion to i t
Marxist political party in 1968, strives to retain non
Communist elements and an image as i t broad -based
labor party belying its Communist domination. In its
conlinuing effort k� converts, the PA employs
essentially the saute variety of front groups as the
Conunumist parties ill most other \Vestert countries.
These organizations, most of which do not have direct
overt connections with the Communist ruovemu�nt,
focus their principal energies on winning converts to
whatever party principles or causes may seem
appropriate to the particular audicnc(-.
In the field of culture Icelandic� Conntuuists help
support a multiplicity of friendship societies with
Communist countries for the declared purpose of
fostering an understanding of their respect;"e
civilizatiots." The most important of the several
Erie :ulship societies is tile Soviet- Icelandic Cultural
Society (IM111), which has several local chapters and it
membership which in the mid- 1960's numbered about
1,000. It conducts filet showings, lectures, awl
discussions for which large amounts of' Soviet
produced material are available. There are also annual
visits of Soviet artists to perform, lecture, and
participate in variots exhibititns and track fairs. The
IM111 promotes student exchanges� several Icelanders
(-,tell year attend schools in the U.S.S.li. or elsewhere
in Eastem I?urope, and at occasional Soviet citizen
turns up in Iceland to study the language or the
c�ulhtre. It sporadically publishes I R i t mews and
culture magazine heavily laden with translations of
Soviet works. Sinuilarsocieti(.s have: b(-en established to
foster understanding of Communist China, Cuba.
Poland, Czechoslovakia, f ?ast Germany, and even
Albautia. They' are much smwller than the IM M. often
poorly organized, mitt subject to lengthy periods of
inactivity. Their programs are conducted on it smaller
scale and are generally less imaginative than those of`
the X1111.
The Conunetnist fronts which attract intellectuals
and nationalists foots their opposition on the
goyenumetiCs policy of alloying th(- stationing of
foreign troops in Iceland in peacetime wid on their
alleged corruption of traditional Icelandic values. To
this end such groups have engaged in demmistrations
and a wide range of propaganda activity against the
Iceland Defense Forces. These fronts in recent years
have included the Authors Association of Iceland, the
Association of Icelandic Artists, the Language aid
Culture Society, the Icelandic Peace Committee. and
the Organization of Occupation Opponents.
Connu'list influence in wometi's organizations is
not extensive. The PA dominates it few small front
grumps, such as the \Vomen's Culture and Pace
Society, and has a limited voice in larger, non
Communist organizations, including the Icelandic
\Vone's Suffrage Society. 'I'll( Communists tailor
2;
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their propaganda to themes which rttest appeal to
W0111Vn (-dual political rights, health care for
children, and peace.
J. Splinter groups
The rvlatively moderate, pragmatic tactics pursued
by the PA in recent years have prompter) more extn�tne
I nd doctrinaire leftists to break away periodically to
form their own dissident organizations. 'Thus, in 1969,
hard -line, pro- M oscow Comnunists, iminhering
perhaps 200, left the PA to form the Organization of
Icclandic�'Socialists. The followhig scar, the chief
Communist auxiliary also struck off on its omi. rnure
radical course, changing its uatne from the %'oath
$attalion.to the "Alliance, the Fighting Organization
of Socialists." Still :uut1wr "antirevisionist' splinter
group was formed in 1972, proclaiming itsvIf devoted
to the policies of Engels. Letin. Stalin, and Mao.
None of these tltrarul_cal groups has had or appears
likely to have it discernible effect on internal security.
although isolated extrcnist acts are possible.
F. Maintenance of internal security (S)
1. Police forces
Since Iceland has no delensv forces of its im a mid
no independent intelligence and security system, its
police force assumes a greater than usual significance.
Icelandic la%y provides that there maN he one
policeman for every 300 inhabitants, i t total of -116;
the permanent police force actually numbers about
-t00. "I'he shortfall occurs chiefly in the rtral areas.
where funds for this purpose are limited, and, in :uy
cvenl. the need is nol great. In some lowiis lid
villages the size of the fore�(-� is aetgunn�nlcel seasonal1%
through tvmporary appuinlnu�nls, occasionally
lre�I ling when the fish are rotating.
The largest coulirgent of the perwanvnl force
Sofle 270 mvii �is stationed in livykiavik raider Iliv
chief of police, appointed 11% the Nlinisler of Justice
a id Ecelviii; slical ,%ffairs and msponsihle to hire for
iIistirng the maintenance of internal securits (FigtjW
ti). The chief (if police in Keflavik is similarly
appointed and similarly responsible. Although these
police officials have direct command ryer all police in
their n spectiye jurisdictions, nl ahonl three quarters
ill' each force are local police. ftntcled mainly by the
local municipal treasure. The ot!�ers are National
Police, funded by the national govenuuenl and under
the ultimate jurisdiction of the Ministry of Justice and
Ecclesiastical Affairs. Numbering fe%eer Ilian 100, the
National Police flirt-(- exists b provide trained
professional assislarc(- to local constabularies.
priucipall% in t1w cuuutnsid(-.
In the 12 inc�orporaled lo%yns other than lieskjasik
and Keflavik the sheriff acts as chief tf police. (o the
Iii rural counties tit(- sheriff acts is police inagistrate.
justice of the peace. local immigration inspector, and
tax and cuslottts collector "I'h(- count% sheriffs are
assisted b1 215 civil parish sherills tone for vac�h
parish. fithon thee .appoint.
lit addition to normal polity (hi irs. such
maintaining lmblic� order ;unl cortrolling traffic. the
police force supervises public places in ac,�ordance
%%ith public health regulations and m.intains it nutor
registratiuu bureau. 'I'll(- :%lien Cmitrol Police of the
.linistr% of Justice and Ncclvi,iastic�al %ffairs. clir(-c�tly
Prime Minister
I
Minister of Justice
FIGURE 8. Structure of the police
and intelligence services (S)
28
and
Criminal Court
Eccles�astical Af'ays
of Reykjavik
I
Town and District Keflavik
Reykjavik
Criminal
Sheriffs Chief of Police
Chief of Pallet,
Investigation
I
Division
Parish Sheriffs National Police
Alien
Chief of
Customs
Control
Collection
Police
Supervision
Intellig
Coordination /cooperation
Service
Fufd
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25X1
Defellse of tile island a a pairt of the North Atlantic
Area is provided by the United Stales in accordance
With a defense agreement coucbided betwvc; Iceland
and the United States under NA'T'O auspices in 1951
and revisc,l in December 1950. Under the icrns of the
ugreentent the United States naintai is, as I leadquar-
tcrs, Iceland Defense Forces, the Keflavik Naval
Airbase, at which about 3,200 U.S. Navy awl Air
Force personnel are stationed. However, the revision
or abrogation of the defense agreement, with the goal
of a pbased withdrawal of U.S. forces from Iceland, is
one of the L)ublished pc13cy objectives of the
center �left coalition government (established ill July
197 1 which includes ncnbers of the (,on-
m unist� doninated M. Despite its policy objective
regarding the defense agreement, the government
supports Iceland's continued nembership in NA'T'O.
Although Iceland has no indigenous military force,
it does have the nucleus of a paramilitary force in the
small 400 -nwn police force and in the Icelandic Coast
Guard Service (IC(;S) or Territorial Wa! -s Patrol
(Landhel/;isgavz1a), both under file direction of the
Minister of Justice and 1 ?cclesiastical Affairs. A 30-
na n force at Keflavik Airport has coequal
responsibility with the U.S. forces for nainteuancc of
order at the airbase. Indiyidaal police equipuent
consists principally of rubber truncheons. A limited
supply of .38- caliber pistols, .45- caliber subma-
chineguns, and tear gas is available in the police
arsenal for emergency use. Little nodes vehicular
ccluioment is available. The country lacks the
necessary industrial base to produce arms, amnuni-
tion, and military ecluipme�nt. The government does
not have a military budget.
The ICGS comprises 110 personnel (60 officers, 50
crewmen), five patrol vessels, two 01 -1 -135 helicopters,
one 1'okker friendship I- -27 aircraft, and one fill-52A
helicopter. Although the Minister of Justice and
I ?cclesiw,tic�al Affairs is the nominal Conmander in
Chief. h delegates leis pciwers to the Director, ICGS,
who actual control. The present director,
Capt. Pelur Sigurdsson, is a trained naval officer who
is atte ;,punt; to increase the military capability of the
coast guard The mission of the ICGS is to protect
Iceland's territorial waters and fisheries and to
acconplish search and rescue operations in
cooperation with the U.S. defense forces stationed at
the Keflavik Naval Airbase. "fhe coast guard also bas
the legal rig-6t to exerckv some police finietions. Its
diminutive sire, however, limits its capability to fully
perfonu its missio,,
The five snall ships, based at Reykjavik, consist of
three coast guard patrol craft (WPC), one coast guard
cutter (WIT), and one coast guard lighthouse lender
(\\'A( None of these ships nounts more than one
57 -nun gun. The WPC's Odi� n (Figure 9) and Ac-ir
are equipped with landing platforms to accommodate
utility helicopters up to and including the sire of the
1-111 -52A. The Aegir has a helicopter hangar in which
an 011 -135 helicopter caul be stored. '['Ile Odinn is io
have a similar hangar installed in the near future. Tile
WK. Thor can accommodate the small 011 -133
helicopter and has a hangar in which this size
helicopter can be housed.
fhe IC:(:S plans a gradual expansion and
nodernization program. It has already purchased one
11 -52A and two 011 -13S helicopters, from the United
States. Maintenance for helicopters and training for
technicians have been provided by the U.S. Coast
Guard. The acquisition of these helicopters has greatly
enhanced search and rescue capability. Additionally.
Iceland is actively investigating the acquisition of a
surplus cutter from the U.S. Coast Guard.
G. Selected bibliography (U /OU)
Few I. fig Iisb- language sources treat modern
Icelandic political topics. John C. Griffiths' Modern
Iceland (London. 1969), provides a broad -brush
FIGURE 9. Coast guard patrol craft
Odinn. Helicopter landing platform
is aft. (U /OU)
30
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depiction of the contemporary social and political
landscape. Some of his insights seem useful; but
substantiating detail is limited. The Icelandic
Constitution is included as an appendix. A recent
historical survey of foreign policy, is available in
Benedikt Crondal's Iceland frorn Neutrality to
NATO Membership (Oslo, 1971). Crondal, a leading
member of the Social Democratic Party, is generally
accurate and objective in recounting the evolution of
modern defense policy in the context both of domestic
politics and of impinging international issues, such as
the Cod War. For another useful, though somewhat
dated, account of the same topics, see Iceland,
Reluctant Ally (Cornell University Press, 1961) by
Donald E. Nucchterlein, a former U.S. official in
Reykjavik. Iceland 1966 1eykjavik, 1967), it
comprehensive handbook published by the Central
Bank of Iceland, surveys, inter alia, the development
of political institutions, briefly treating such topics as
the Constitution, national and local administrative
structure, the major political parties, and foreign
affairs, especially the fisheries jurisdiction issue. Again,
however, much of the material is no longer curicnt.!
Detailed voting statistics and similar electoral data are
published in Reykjavik periodically by the Statistical
Bureau of Iceland; an English key is normally
provided
31
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Chrondlugy (Dieu)
874
First settlers arrive from Norway.
930
The Allhing is established as a national parliament for an
Icelandic federation of self- governing "republics."
1262
Norwegian rule is accepted by treaty.
1380
Iceland, together with Norway, comes under Danish rule.
1800
Allhing is abolished by royal decree; supreme court of law
takes its place.
1814
Norway separates from Denmark, but Iceland retrains under
Danish rule.
1843
Ahhing is restored in Reykjavik but is vested with only
advisory powers, and electorate is limited to a few privileged
property owners.
1874
A Constitution is granted by Denmark, embodying a bill of
civil rights and remodeling the Ahhing into a legislative
assembly.
1903
A revised Constitution provides for partial home rule, in-
cluding a single cabinet minister in Iceland, appointed by
the King of Denmark and responsible to the Allhing.
1915
A second revision of the Constitution provides for complete
parliamentary democracy but leaves defense and foreign
affairs under Danish control.
11918
December
Act of Union, ratified by Iceland and Denmark, makes Ice-
land an independent kingdom joined to Denmark under a
common monarch, but makes Iceland's military defense a
Danish responsibility and leaves foreign affairs under Danish
administration.
1940
April
Denmark is occupied by Germany, rendering Denmark unable
to fulfill its defense commitment to Iceland.
May
British troops occupy Iceland.
32
19.11
July
U.S. Icelandic Defense Agreement provides for stationing
U.S. forces on the island during World War 11.
19.14
June
Iceland abrogates the Act of Union, severing its last tics with
Denmark, declares itself it republic, and adopts it new
Constitution.
19
September
Keflavik Agreement abrogates the 1041 defense agreement
but provides for tationing U.S. civilian technicians at
Ktfluvik Airfield to assist in carrying out U.S, militury
obligations in occupied Germany.
November
Iceland joins the United Nations.
19 17
March
Last American troops are withdrawn from Iceland.
1948
April
Iceland joins the Organization for European Economic
Cooperation (OEEC), now Organization for Economic
Cooperation and Development (OECD).
19.19
April
Iceland joins NATO, but enjoins stationing of foreign troops
in the country during peacetime.
May
Iceland joins the Council of Europe.
1951
May
New U.S. Iceland Defense Agreement provides for stationing
U.S. forces Iceland Defense Forces) under NATO auspices
in Iceland to take over its defense and terminates Keflavik
Agreement.
December
Iceland joins the Nordic Council.
1956
March
Allhing resolution calls for the withdrawal of U.S. forces.
June
Iceland notifies the United States of its desire to begin
negotiations for revising the defense agreement.
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1
t�-
1986
December
The United States and Iceland agree on the need for the
continued presence of U.S. forces.
1958
September
Iceland extends its exclusive fishing belt from .1 to 12
nautical miles and thereby precipitates it 3 -year "Co16 War"
with the United Kingdom.
1959
October
Coalition government of Independence and Social Demo-
cratic Parties initiates economic stabilization program to
combat inflation.
1961
Iceland wins international recognition for its 12 -mile fishing
limit and concludes a fishing agreement with the United
Kingdom, ending the Cold War.
1963
June
National election provides parliamentary majority for con-
tinuance of same coalition government.
1964
June
After a long delay Iceland joins UNESCO, indicating its
desire to participate in world cultural activities.
1966
May
Dominant Independence Party registers losses and Social
Democrats gain in municipal elections.
1967
June
National election sustains the Independenec-Soeial Demo-
cratic coalition.
1970
March
Iceland joins EFTA.
1971
June
National election brings down Independence Social Demo
cratir coalition.
July
The Progressive Party, People's Alliance, and Organization
of Liberals and Leftists form it center -left government.
1972
July
Iceland negotiates a limited free trade agreement with the
EC. Entry into force is made contingent on an acceptable
solution to Iceland's renewed fishing limits dispute with the
United Kingdom and West Germany.
September
Iceland unilaterally extends the. limits of its exclusive fishing
jurisdiction from 12 to 50 nautical miles.
1973
January
Volcanic eruption on Ileinaey island imperils Vestman-
naeyjar, Iceland's chief fishing port.
33
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A. %r %r w %r %F1 I %F v1 'L I. I w I w %F E %r ff I IL %r %r %r A. w %F I I %F %r %F %F %F
Sh-,Clwn
glossary (ulom)
ABBREVIATION
ICELANDIC
ENG1.1
CP1
Communist Party of Iceland
ICGS
Icelandic Coast Guard Service
IDF
Iceland Defense Forces
IF[
Alihyditsamband Islands
Icelandic Federation of Labor
OLI
Organization of Liberals and Leftists
PA...........
A lthydubandalagid
People's Alliance
NI I It
-.Venningaricnysl Islands ug Radhsljorn-
Soviet Icelandic Cultural Society
64 01
arrikjanna
K6pavogur
U 1 1 1 -S 1
Sameiningurflokkur Althydu-Susialisla-
United People's Party-Socialist Party
flokkur
Adhyduflokkur
Social Democratic Party
Bandalog Slarfstnanna I?iki. Baeja.
Federation of State and Municipal Em-
66 09
Is 55
ployees
64 03
Fiskimannasamband Islands.........
Federation Of Fishing Of Iceland
Framsoknarflokkur
Progressive Party
Samband Islenzkra Sainvinnufelaga
Federation of Icelandic Cooperative
Societies
Samband Sjalfstacdiskvcntta-.felagaritia.
National Federation of Independence
Women
Samband ungra Frarnsoknarmanna..
Federation of Young Progressives
Samband ungra Sjalfstacdismanna.
Federation of Independence Youth
Sjalfstaedhisflukkur
Independence Party
Vinnveilendafelag Samband...........
National Association of Icelandic E,111-
ployers
Places and features referred to in this chapter (ulou)
my
NO FOREIGN DISSEM
SECRET
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COORDINA
0 fN.
0 f IV.
Akranes
64 11)
22 06
Akureyri
65 10
18 06
136rfell
61 05
20 516
Ilafnarfj6rdliur
6-1 04
21 57
Ilcirnaey (isl)
63 26
20 17
fsafj6rdhur
66 05
23 09
Keflavik
64 01
22 34
K6pavogur
64 06
21 55
,Nlyv,Ltn (lake)
(15 36
17 00
Reykjavik
64 01)
21 57
Sigalda (hills)
6.1 09
19 13
Siglufj6rdbur
66 09
Is 55
Straurnsvik (rove)
64 03
22 02
Vest man nacyjar (ists)
63 25
20 IS
my
NO FOREIGN DISSEM
SECRET
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