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 to this gate! Mr. Gorbachev, open this gate! Mr. Gorbachev, tear down this wall!" The last sentence became "the four most famous words of Ronald Reagan's Presidency." Reagan later said that the "forceful tone" of his speech was influenced by hearing before his speech that those on the East side of the wall attempting to hear him had been kept away by police. The Soviet news agency wrote that Reagan's visit was "openly provocative, war-mongering." The East-West tensions that had reached intense new heights earlier in the decade rapidly subsided through the mid-to-late 1980s. In 1988, the Soviets officially declared