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
Mikhail Gorbachev over his domestic reforms, Gorbachev was largely hailed in the West for his 'New Thinking' doctrine in foreign affairs. During his tenure, he sought to improve relations and trade with the West by reducing Cold War tensions. He established close relationships with several Western leaders, such as West German Chancellor Helmut Kohl, U.S. President Ronald Reagan, and British Prime Minister Margaret Thatcher, who famously remarked, "I like Mr. Gorbachev; we can do business together". Gorbachev understood the link between achieving international détente and domestic reform and thus began extending "New Thinking" abroad immediately. On 8 April 1985, he announced the