Foreign relations of Iceland already being prepared. U.S. officials have since then argued that Iceland is in no need of a military presence. NATO allies since then conduct air policing after the U.S. Air Force withdrawal. Foreign relations of Iceland Iceland's closest relations are with Norway and other Nordic states, Canada and the United States. Iceland hosted the historic 1986 Reagan-Gorbachev summit in Reykjavík, which set the stage for the end of the Cold War. Iceland's principal historical international disputes involved disagreements over fishing rights. Conflict with the United Kingdom led to the so-called Cod Wars in 1952–56 because of the extension of the
Treaty on Conventional Armed Forces in Europe the establishment of an effective verification system. Meanwhile, in December the INF Treaty between the United States and the Soviet Union was signed, effectively allowing mutual inspections. During the May–June 1988 Moscow Summit, US President Ronald Reagan and General Secretary Gorbachev emphasized the importance of stability and security in Europe, specifically calling for data exchange, verification of these data, and then reductions. In December Gorbachev announced at the United Nations a unilateral withdrawal of 50,000 troops from Eastern Europe, and demobilization of 500,000 Soviet troops. In January 1989, NATO and the Warsaw Treaty members produced the Mandate for the Negotiation