ACTA ELECTRONICA UNIVERSITATIS LAPPONIENSIS 285 ACTA 285 PÉTURSSON THE DEFENCE RELATIONSHIP OF ICELAND AND THE UNITED STATES AND THE CLOSURE OF KEFLAVÍK BASE BASE AND THE CLOSURE OF KEFLAVÍK OF ICELAND AND THE UNITED STATES DEFENCE RELATIONSHIP Gustav Pétursson The Defence Relationship of Iceland and the United States and the Closure of Kefavík base Acta electronica Universitatis Lapponiensis 285 GUSTAV PÉTURSSON Te Defence Relationship of Iceland and the United States and the Closure of Kefavík base Academic dissertation to be publicly defended with the permission of the Faculty of Social Sciences at the University of Lapland in room 2 on 12 September 2020 at 12 noon Rovaniemi 2020 University of Lapland Faculty of Social Sciences Supervised by Dr. Lassi Heininen, Professor Emeritus Faculty of Social Sciences. University of Lapland Dr. Michael T. Corgan, Associate Professor of International Relations at the Frederick S. Pardee School of Global Studies. Boston University Reviewed by Dr. Magnus Petersson, Professor of Modern History. The Norwegian Institute for Defence Studies Dr. Rasmus G. Bertelsen, Professor of Northern Studies, Barents Chair in Politics. The Arctic University of Norway Opponent Dr. Magnus Petersson, Professor of Modern History. The Norwegian Institute for Defence Studies © Gustav Pétursson Layout: Taittotalo PrintOne Acta electronica Universitatis Lapponiensis 285 ISBN 978-952-337-222-1 ISSN 1796-6310 Permanent address to the publication: http://urn.f/URN:ISBN:978-952-337-222-1 Tis PhD dissertation is dedicated to the memory of Alyson J.K. Bailes 1949-2016 and Michael T. Corgan 1941-2018. Inspirational mentors who made the world a better place. 3 Pétursson: The Defence Relationship of Iceland and the United States and the Closure of Kefavík base Abstract A small state with no armed forces of its own Iceland formed a close defence relationship with the United States afer gaining full independence from Denmark in 1944. In 1951 the two states signed a bilateral defence agreement allowing for a U.S. military base in Iceland. Following failed burden sharing negotiations in 2005/2006 between the two governments the U.S. government unilaterally closed down Kefavík base and handed all defence functions over to the Icelandic government. Tis dissertation analysis through process tracing and the use of primary source material the defence functions of the U.S. military at Kefavík base, the failed 2005/2006 burden sharing negotiations and how from 2006 until 2013 consecutive Icelandic governments adapted to the closure of Kefavík base. While this study is anchored within the theoretical schools of Neorealism and Institutionalism its conclusions are that to gain a holistic understanding of the decision making process during the burden sharing negotiations and the afermath of the closure of Kefavík base it is important to look beyond the state centric approaches of Neorealism and Institutionalism and factor in alternative theories on the motives of individual actors involved in the decision making process. 4 Pétursson: The Defence Relationship of Iceland and the United States and the Closure of Kefavík base Tiivistelmä Islanti, pieni valtio ilman omia asevoimia, loi läheisen puolustussuhteen Yhdysval- tain kanssa vuonna 1944saavutettuaan täydellisen itsenäisyyden Tanskasta. Vuonna 1951 maat allekirjoittivat kahdenvälisen puolustussopimuksen, joka salli Yhdys- valtain perustaa sotilastukikoht(i)a Islantiin. Kustannustenjakoa koskevien epäon- nistuneiden neuvottelujen (vuosina 2005-2006) seurauksena Yhdysvaltain hallitus sulki Kefavikin sotilastukikohtansa yksipuolisella päätöksellään ja luovutti kaikki puolustustoiminnot Islannin hallitukselle. Primaariaineistoon pohjautuen tämä väitöskirjatutkimus jäljittää ja analysoi Kefavikin tukikohdan puolustustoimintoja, em. epäonnistuneiden neuvottelujen kulun, ja miten Islannin hallitus mukautui Kefavikin tukikohdan sulkemiseen. Vaikka tutkimus ankkuroituu Neorealismin ja Institutionalismin koulukuntiin sen keskeinen johtopäätös on, että kokonaisvaltai- sen ymmärryksen saavuttamiseksi tämänkaltaisessa kustannustenjakoa koskevassa päätöksentekoprosessissa on tärkeätä katsoa Neorealismin ja Institutionalismin valtiokeskeisen näkökulman yli sekä ottaa huomioon vaihtoehtoisten teorioiden näkökulma yksilötoimijoiden motiivien merkityksestä päätöksenteossa. 5 Pétursson: The Defence Relationship of Iceland and the United States and the Closure of Kefavík base Acknowledgements Doing PhD research is a journey with unforeseen twists and turns. Tis journey began as an idea during a cold February morning in 2009. At the time I was a fresh- faced graduate halfway through an unpaid three-month internship at the Icelandic Defence Agency. Trough my daily work and casual cofee talk with my fellow co- workers I came to realise that the closure of Kefavík base three years earlier and the nature of the defence tasks handed over to Icelandic authorities presented a fertile ground for a PhD dissertation. Te completion of this dissertation would never have been possible without the support and encouragement of a large group of people. Chief among them are my PhD supervisors, Dr. Lassi Heininen and Dr. Michael T. Corgan. I would like to express my gratitude and thanks to the Icelandic Ministry for Foreign Afairs and the Icelandic Coast Guard for responding favourably to my research inquiries and for assisting me sourcing relevant documents within their archives. In particular Jónas G. Allansson at the Ministry for Foreign Afairs and Jón B. Guðnason at the Coast Guard. I also thank Guðmundur I. Guðmundsson for granting me access to the private papers of his father, Foreign Minister Guðmundur Í. Guðmundsson, and all those interviewed during this research project. A number of people read various chapters of the manuscript during its stages of development and ofered their advice and recommendations. I express my gratitude to Arnór Sigurjónsson, Gregory Winger, Jon Terje Eide, Jón B. Guðnason and Alyson J.K. Bailes. Of course, the responsibility for the content of these pages is mine. I would also like to thank my wife Bergrún Arna Óladóttir and our four children: Katrín Valgerður, Kristján Óli, Eyrún Svala and Steinar Pétur for providing me with a loving home and appreciation of the important thing in life. 6 Pétursson: The Defence Relationship of Iceland and the United States and the Closure of Kefavík base Table of Contents List of illustrations .............................................................................................................................................................................................9 List of abbreviations ....................................................................................................................................................................................10 1. Introduction ..................................................................................................................................................................................................11 2. Methodology and theory ...........................................................................................................................................................14 2.1. Research methods ................................................................................................................................................................................14 2.2. Validity and reliability .....................................................................................................................................................................16 2.3. Teoretical approach ........................................................................................................................................................................19 2.3.1. Neorealism and defence ................................................................................................................................................19 2.3.2. Institutionalism and defence .....................................................................................................................................24 2.3.3. Alternative theories of explanation .....................................................................................................................28 3. Iceland’s defence relationship with the United States ...................................................................31 3.1. Early history ............................................................................................................................................................................................31 3.2. Te defence relationship with the United States ....................................................................................................34 3.3. Te relationship as a source of fnancial assistance ..............................................................................................43 3.4. Te relationship as a leverage in gaining foreign policy objectives .........................................................50 3.4.1. Te frst Cod War 1958-1961 .................................................................................................................................50 3.4.2. Te Second Cod War 1972-1973 ........................................................................................................................58 3.4.3. Te Tird Cod War 1975-1976 .............................................................................................................................69