859A.20/173: Telegram
The Secretary of State to the Minister in Iceland (MacVeagh)
128. From the Under Secretary. Contents of your 217, April 21, have been laid before the President together with an expression of the Department’s opinion that the establishment of an American [Page 8] military government even in the event of a German attack would be contrary to the spirit if not the terms of the President’s explicit promise not to interfere with the government of Iceland; that such action would result in ill will on the part of the Icelandic population, and would furnish Germany with excellent propaganda material particularly in the Scandinavian countries; and that foregoing aspects would weigh against any military advantages.
In lieu of the procedure suggested to you by General Bonesteel, the President has now authorized you to discuss with General Bonesteel and with the Icelandic Government the terms of a proclamation to be issued by the Regent of Iceland, or other appropriate Icelandic authority, whenever requested by the United States military commander, under which the Icelandic Government would itself proclaim martial law and delegate to the United States military authorities the full enforcement thereof. If this procedure should be unacceptable to the Icelandic Government for constitutional or other reasons, you are authorized to discuss the possibility of the issuance by the Commanding General, in case of necessity, of a simple proclamation of martial law as appears to have been contemplated by the British military authorities, and to which, according to your telegram under reference, the Prime Minister has already indicated his assent.
The tenor of the procedure authorized by the President and also that of the foregoing instructions to you has been communicated to the Secretary of War together with the suggestion that he may wish to send appropriate directives to General Bonesteel.
You may communicate the contents of this telegram to General Bonesteel and initiate your discussions with the Icelandic Government whenever details have been agreed upon between you and the General. The importance of secrecy and the urgency of an early decision in the matter should be impressed upon any officials with whom this matter is discussed.
The Department should be kept fully informed by telegraph. [Welles.]