Iceland in the Cold War Iceland in the Cold War Throughout the Cold War, the nation of Iceland was a member of the North Atlantic Treaty Organisation (NATO) and allied with the United States, hosting a US military presence in Keflavík Air Base from 1951 to 2006. In 1986, Iceland hosted a summit in Reykjavík between United States President Ronald Reagan and Soviet Premier Mikhail Gorbachev, during which they took significant steps toward nuclear disarmament. Five years later, in 1991, Iceland became the first country to recognize the renewed independence of Estonia, Latvia, and Lithuania when they broke away from the Soviet Union. Early in
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