| Description | United Kingdom (UK) considering either a payments agreement or the inclusion of Iceland in the sterling area, summer 1940. Problem of Swedish-Iceland fish trade (a history in folio 190/1). Agreement, 29 Mar 1941: Iceland and Faroes to be part of sterling area; local exchange and import control to be maintained; joint Anglo/Iceland and Anglo/Faroes committees to give supervision. United States (US) occupation of Iceland, 1941 and provision of financial support. Exclusion of Iceland from sterling area considered. New agreement with United Kingdom, 13 Feb 1942: Iceland not excluded, but United Kingdom no longer to meet Iceland's foreign exchange requirements. |