611.59A31/24
The Icelandic Trade Delegation to the Department of State 7
As a consequence of the fact that the United States has assumed the protection of Iceland8 in accordance with messages exchanged between the President of the United States and the Prime Minister of Iceland,9 the economic and commercial relations of the two countries are bound to undergo a fundamental change.
The war in Europe which now has lasted two years, has entirely dislocated the foreign trade of Iceland and cut her off from markets, on which her economic structure had depended to a great extent, and to which needs the Icelandic export industries had adapted themselves. Iceland has during the war depended upon Great Britain and the United States for the sale of her products and the supply of her needs. For obvious reasons Iceland must now more and more, as the war goes on, depend upon the United States for supply of necessities for the subsistence of the population and maintenance of her production, as well as the marketing of her products.
Great Britain has from the beginning of the war showed a friendly and understanding attitude towards Iceland and exhibited her [Page 760] willingness to lessen the difficulties which the war imposed upon trade and production of the Icelandic people by purchasing most of their products at remunerative prices and by supplying Iceland with most of her necessary imports. But as a natural consequence of the war, it is becoming increasingly difficult for Great Britain to provide Iceland with the most vital necessities.
With this in mind and especially with a view to the fundamentally altered circumstances due to the United States assuming the protection of Iceland and the promise of the United States Government to further the interests of Iceland in every way, including that of supplying her with sufficient necessities and concluding with her a favorable economic and commercial agreement, the Government of Iceland has now sent a special Delegation to Washington to negotiate with the Government of the United States regarding questions of finance, trade and shipping, which are of vital importance to Iceland.
The exports of Iceland consist mostly of Foodstuffs, the bulk of which at present goes to Great Britain, where these valuable food products are now meeting an urgent need. But as already mentioned, it is for obvious reasons becoming more and more difficult for Great Britain to supply Iceland’s needs of goods in exchange for her export products. But unless Iceland is supplied with the equivalent of these export products in the form of necessary commodities and services, her production will definitely decrease and eventually come to a standstill.
With a view to the messages exchanged between the President of the United States and the Prime Minister of Iceland, as well as the contact now established, the Icelandic Government is fully confident that the Government of the United States will do everything in its power to further the interests of Iceland in every way under the unusual and difficult conditions now prevailing. The Icelandic Government further ventures to express the hope that the United States Government will treat these negotiations in the light of the exceptional circumstances which have made these discussions necessary. The Icelandic Government has authorized the Delegation to submit for discussion the following subjects:
- 1.
- Currency and financing of Imports to Iceland from the United States.
- 2.
- Import of Icelandic products to the United States and reduction of Import duties to facilitate the marketing of various products.
- 3.
- Supply of goods required by Iceland and facilities of producing permits and export licenses.
- 4.
- Shipping facilities.
- 5.
- Direct mail and telegraph connections.
- 6.
- Facilities for Icelandic fishing vessels to land and sell their catches in the United States free of duty.
- 7.
- Various other matters.
Further particulars concerning these items will be submitted by the Delegation during the first meetings or whenever desired.
In view of the traditional friendship and historical ties between the United States and Iceland, the Icelandic Government trusts that the present negotiations may form a lasting basis for economic and commercial cooperation between the two countries.