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 that they would no longer intervene in the affairs of allied states in Eastern Europe. In 1989, Soviet forces withdrew from Afghanistan. Reagan's Secretary of State George P. Shultz, a former economics professor at Stanford University, privately instructed Gorbachev on free market economics. At Gorbachev's request, Reagan gave a speech on free markets at Moscow University. When Reagan visited Moscow, he was viewed as a celebrity by the Soviets. A journalist asked the president if he still considered the Soviet Union the evil empire. "No," he replied, "I was talking about another time, another era." In his autobiography "An American