Iceland during World War II

At the beginning of World War II, Iceland was a sovereign kingdom in personal union with Denmark, with King Christian X as head of state. Iceland officially remained neutral throughout World War II. However, the British invaded Iceland on 10 May 1940. On 7 July 1941, the defence of Iceland was transferred from Britain to the United States, which was still a neutral country until five months later. On 17 June 1944, Iceland dissolved its union with Denmark and the Danish monarchy and declared itself a republic, which it remains to this day.

German interest in Iceland in the 1930s grew from nothing at all to proportions found by the British government to be alarming. The Third Reich's overtures began with friendly competition between German and Icelandic football teams. When war began, Denmark and Iceland declared neutrality and limited visits to the island by military vessels and aircraft of the belligerents.

During the German occupation of Denmark, contact between the countries was disrupted. Initially, the Kingdom of Iceland declared itself to be neutral, and limited visits of belligerent warships and imposed a ban on belligerent aircraft within Icelandic territory.

Following the invasion of Denmark on 9 April 1940 Iceland opened a legation in New York City. Iceland, however, unlike Norway, did not closely enforce limitations within its territorial waters and even slashed funding for the Icelandic Coast Guard. Many Axis merchant vessels seeking shelter within the neutral waters around Iceland were sunk by Allied warships. The Chief of the Capital Police Forces, Agnar Kofoed-Hansen, started to train the National Defence forces in early 1940.

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