The Icelandic government turned them down. A British request to establish bases in Iceland for the protection of the vital North Atlantic supply lines after German forces occupied Denmark and Norway in April 1940 also was turned down in accordance with the neutrality policy. Therefore, it was a rude surprise for the people of Reykjav k to awaken to the sight of a British invasion force on May 10, 1940. Iceland protested the use of military force by Britain but immediately accepted the fait accompli. Nothing could be accomplished by resisting.
Newspaper accounts from that period suggest that there was a certain feeling of relief.
Because of the historic links between Iceland and Britain, it was felt that if someone had to invade the country it was better to see the Allies come, and not the Axis. Acceptance of the invasion, however, did not mean that nothing could be done about the situation. In the late spring of 1941, there was strong support in Iceland for such a solution. Following talks between British Prime Minster Winston S. Churchill and President Franklin D. Roosevelt of the United States, Iceland agreed to a tri-partite treaty under which the United States was to relieve the British garrison in Iceland on the condition that all military forces be withdrawn from Iceland immediately upon the conclusion of the war in Europe. Most British Army personnel were withdrawn the following year, leaving the Royal Navy and the Royal Air Force as the primary British presence.