1939: Iceland

Iceland, an independent island State, is situated between Great Britain and Greenland, bounded south by the Atlantic Ocean and north by the Arctic Ocean at the southern edge of the Arctic Circle. It has an area of 39,709 sq. mi. and in 1938 had a population of 117,692 inhabitants almost entirely Icelandic and Scandinavian. The Capital and principal city is Reykjavik.

The Island's principal crops are potatoes, turnips, and hay. An important industry is carried on with the raising of horses, cattle, sheep, and goats. The most important industries are the fisheries. In 1936 their value was 22,245,000 kronur (the kronur or crown averaging $.22). In 1938 exports totaled 58,988,000 kronur and imports 53,309,000 kronur. The State of Iceland is joined with the State of Denmark under one King: Christian X. The King exercises through his ministry an executive power; and a Parliament, called Althing, shares with the Sovereign legislative power. The present Premier, appointed by the King July 29, 1934, is Hermann Jonasson. Governmental revenues for 1939 were estimated at 17,004,960 kronur; government expenses at 16,705,791 kronur.

During the year 1939 Iceland's foreign relations were bound up with those of the other Baltic States. On March 22, a report was circulated that Germany was seeking an air base on Iceland, and a German delegation from the Deutsche Lufthansa began negotiations for an air field on the Island for their north Atlantic route. This was refused. On March 31, 1939, Iceland recognized the Franco régime in Spain. After the outbreak of the European War, a British airplane with a crew of nine made a forced landing on Iceland and were interned. The airmen escaped to England, but on Oct. 11, the pilot returned to Iceland voluntarily to be interned for the duration of the war.