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
Presidency of Ronald Reagan negotiations with the United States over arms control. As his influence on domestic affairs waned during his second term, Reagan increasingly focused on relations with the Soviet Union. Reagan recognized the change in the direction of the Soviet leadership under Gorbachev, and shifted to diplomacy, with a view to encourage the Soviet leader to pursue substantial arms agreements. Reagan's personal mission was to achieve a world free of nuclear weapons, which according to Jack F. Matlock Jr., Reagan's ambassador to Moscow, he regarded as "totally irrational, totally inhumane, good for nothing but killing, possibly destructive of life on earth and