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
Foreign policy of the Ronald Reagan administration but Reagan recognized the real change in the direction of the Soviet leadership, and shifted to skillful diplomacy to personally push Gorbachev further with his reforms. Reagan sincerely believed that if he could persuade the Soviets to simply look at the prosperous American economy, they too would embrace free markets and a free society. At a speech given at the Berlin Wall on the city's 750th birthday, Reagan pushed Gorbachev further in front of 20,000 onlookers: "General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and Eastern Europe, if you seek liberalization: Come here