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Iceland signed a contract making them a separate state from Denmark. They were a separate state from them for 25 years until they were became an independent republic.
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In that time the Icelandic people supported themselves with fishing and sheep ranching and sending their products to parts Europe
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Iceland was very well located for other countries to use in their advantage in the war and the Germans and the British had noticed that. The country that had access to Iceland would control the entrances into the Atlantic.
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In april 1940 the Germans invated Denmark and quickly overrun them. Then Iceland had to take care of them selves and in a way they were independent then.
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Britian invaded Denmark and then controlled the entrances into and exits from the Atlantic.
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The Canadian troops were in Iceland to help the British army. They were then replaced in 1941 by British garrison forces
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May 28 1941 the president of USA had a meeting with the British Ambassador. The president in USA offered to assume responsibility for the garrisoning of Iceland.
The last British troops left in 1947 -
The defence of Iceland was transferred to the USA. Iceland cooperated with the USA and Britain but were still neutral.
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The USA was defending Iceland there but they were still working with Britain
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In 1943 Iceland had no legal ties with Denmark but they became and independent republic on the 17´th of June in 1944. The first president was Sveinn Björnsson.
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The war ended with Hitlers death in 1945. Then the Germans had been stopped and Hitler killed himself. The Germans also signed the surrender document on that day.
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