Abstract
The article explores the crisis in Iceland's relations with the Western Alliance following a left-wing government's decisions, in 1971, to expand Iceland's fishery limits and to demand the withdrawal of US military forces. This sparked a cod war with Britain and a diplomatic stand-off with the United States, with NATO in the middle. It analyzes the motives behind Iceland's behaviour – especially the tension between a pro Western foreign policy course and a domestic anti Western nationalism – the Western response within the context of alliance politics and the democratic peace theory, and the role of international mediation and domestic political realignments in diffusing the crisis.
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