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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 classified Factbook. The Inventory lists all NIS units by area name and 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. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 wvvrvvr Iv. v1r-1 1wI v I vvr yr Iwvvwv I Ivvvv v c I .mss v1 GIs w powar dw N bw tie 6w1 IaMMgrer ;+1err' /t baiw tli w /4 wYiwet /raw tit Oeww ter Aamm, AeaAwi A ww xAWwallW 1 i oph r by lonmr J= APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 I1 Tt*lr 91 Is, rMrrKnnir dm**Aw it V. 11ntrrnat�Ona1 a U d, Fishi "s lindb n r. lWalks n With WSW 1-11 Wit 0% (1) IPAW Stdn 1 kwalawk (3) dthc" 24 3. DrIMw pnlicy 24 4. Pbpula: attitudes IUTAW l NdIW d P*dA A 9 9 10 10 11 11 11 rl 13 13 14 14 14 15 16 16 16 16 17 17 17 17 18 18 18 18 18 19 19 19 19 F� T mcab to pteruareat stability 1. ixiE.mient and cllieldmv 3. 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Ilsr t .11"f""01q.1 4l� a1tp11."ir/1 I'1.1I01.� %IIi.1114.� .11141 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP0l- 00707R000200110053 -5 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, APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 dlllim� If %iln1N�alwl lot ihr Iwrrltlr. Illy 1'ttwitl nil 41114111 disNdr,1� IIh� Itrlthaltw"llt moll t91111ist two r6-1111t1� 111 eddilioll 11 Ilw� Inlail 1n11t�li1Il� a"arli,llyd Ailh Ihr olfitt� Ill 0111411 oI 11+111'. %1111.11 ,1� frllt W111114% Ihr t�1ulltt%, �igtlitlit Ireali" %ilh 11914�igrl 11494141'1'�. i11111oin1111g higher 1111m,41�, +11141 itlili,llitlg 19i11� 1111 �llbtnis�iotl 119 lkerli: llirnl. the 1 trxidrill 14, 4'n11149wrt"I I1'4111111111011 1klrli,lltw�1l'I. to Ili%.l9l %r II. ,ltltl 1101ttlrt IWU rh�ctions. Ile ,11.1$ 11,11 a 161-110 Ix9Net Moir IrRi.l.11i1n: Ihr� %1.111 ma% In' o%etridde11 if the Althing rerun b .ubntit the reiet -111~1 (rill 149:1114111111ar n frn�nd11n1. i111d it 11laj11til% of Ihr� 4.14�c�lorltr sglt�1.9111rn11 :1111niiim it. 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 I-Aw. If vw* �t0ltlinwlr In A *-4*1A64 �Al10ti1i Al Ilw- +r.lirrw 14 I owdir A 1w w rwar i+ rrllitulrt i� Wwrl AMI Al" 14"I Its 1 'lwvtli.�nwr�I I Iw- UrAwat nUit A" PA" A '1v11r ral r/�, rrwvlillr 1 At-1 W4 An 11h116/11rw11 Iniwl4401 whv� onvo Ih1w "'WM .�Iila+wlM 1111 1:.161 M A. 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II It.1111M�m IN1 I10.01 pli441 v�1111�IIIY�4 x.11111411 Iw 4 �srrirol stool lost Lost 411 imm. and ILL lithl eir %fowl 44�t111�t14+�4 Il sst Il14�tr141h� 111� 4 144 filli.. 1 rrslnawrt rrl 1ert"Itorr i hllnt.nll� 14 414 .i 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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. \140'rim- 11til'111111 4'4111111111110 do. 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A0 A If J4 11.0011 170 I� -IilI4 A of V. 0041, 6 =:vw 0401,to 71 oilo 4m 10 610 +1 0.11. "1 /rti9ttl7 I0009Y Iv1 oN+fg io9 1601111 t :4 110 of 1. 1.t. hR ARFOX" NMMd 011�10 cippopffamme os M N f R lt+ynwrtlr! >d 1 t 1 t t 4 Y I cmemwK No t lrltw tiw laftm t la1l Orwsaltt r� G01t1�0Mt' N N bft W 101.1 1 I �I I �1 1�i I:II I�I 1 �I ICI n OK MM 1�D on Im 0 "a "a 11/0 lilM 011111111111111, far d alrr open" t. 1t nm Ia View A or as a W ibe ilr Ar �a. w wM a M ON 11t law ftm �w tra Md at. 0000,1 a doom wwAN w 0 an tI til to" 011111111INMt t n. c of rNtww tit+... anew am me. a SON wow ft. of too, lwr Ilr pMla1 pmltw% we mum" r %W of 41" f1GiJ!!I< 3, f1 uft a* AWmq s4cela s (U 0)) 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 23 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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; APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110053 -5 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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110053-5 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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110053-5