The country experiences rapid technological and economic progress. University of Iceland established in 1911. Denmark retains control over foreign affairs only. The treaty is valid until 1943. War and independence 1940 - German forces occupy Denmark.
British forces occupy Iceland.
1941 - The United States takes over the defence of Iceland and stations tens of thousands of troops there. The Treaty of Union with Denmark runs out, with Denmark still occupied by Nazi Germany. 1944 - Icelanders vote in a referendum overwhelmingly to cut all ties with Denmark and become a republic. The Republic of Iceland is proclaimed on June 17th. 1949 - Iceland becomes a member of Nato.