Foreign Relations of the United States, 1952–1954, Western Europe and Canada, Volume VI, Part 2

740B.5/12–753

No. 696
The Foreign Minister of Iceland (Gudmundsson) to the Minister in Iceland (Lawson)¹

confidential

Reykjavik, December 4, 1953.

Excellency: I have the honor on behalf of my Government to submit the following proposals regarding the Defense Agreement and related agreements and their implementation.

1. The construction activities on behalf of the Defense Force be arranged in such a manner that engagement of foreign labor be entirely avoided and at the same time due consideration be given to the demand for manpower by the Icelandic industries and production. It should also be stressed that the installations to be constructed may become useful for other as well as defense purposes. Evacuation of foreign labor engaged by the Defense Force should be commenced as soon as practicable.

2. The Icelandic State will act as an intermediary in construction activities and maintenance of installations for the Defense Force. The State will either invite tenders for the projects or have them performed in the same manner as now is the case as regards road construction to the contemplated Radar-sites.

3. The defense areas be planned in such a manner so as to separate distinctly the area occupied by the Defense Force and its alien employees and that occupied by Icelanders in order to facilitate the control of these limits.

4. Further restrictions than now existing be put on leave excursions of members of the Iceland Defense Force and its employees outside the defense areas. The Icelandic Government should issue regulations to this effect, but as a matter of course, it would have due cooperation in this respect with the Iceland Defense Force.

5. The possibilities of Icelanders manning the contemplated Radar Stations on behalf of the Iceland Defense Force be investigated as well as the possibilities of Icelanders undertaking other categories of work in connection with security measures. The training for this purpose of Icelandic personnel be commenced as soon as practicable.

Besides the questions dealt with above it is desired that the following points be either taken up for negotiation or into careful consideration.

1. Necessary housing facilities at the Keflavik Airport for Icelandic officials and employees of the Icelandic Government.

2. Running of the Keflavik Airport Hotel.

3. Measures for prevention of sale of duty-free commodities to Icelanders.

4. Expenses of the Icelandic Government arising from the Defense Agreement.

5. Discussions and settlement of other problems that may arise in the future as a result of the execution of the Defense Agreement.

I have [etc.]

Kristinn Gudmundsson

1. The source text was transmitted as enclosure 1 to despatch 154 from Reykjavik, Dec. 7. Transmitted as enclosure 2 was a memorandum by Gudmundsson to Lawson, Dec. 4, which presented in greater detail the requests made in this letter.