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With Iceland's financial system heading into meltdown, there are growing fears for familiar names such as Hamleys, Debenhams, Gordon Ramsay and even Newcastle United — all backed by ailing Icelandic banks and investment houses. Yet the links between Britain and Iceland stretch back for centuries.
Iceland traces its history from the arrival of the first settler, a Norwegian chieftain called Ingolfor Arnarson, who landed in 874 as part of the great migrations that brought the Vikings to Britain. In the next few decades, more Viking chiefs joined him, accompanied by Scottish and Irish slaves captured in raids on the British Isles.
While the Anglo-Saxons were desperately fighting off Viking incursions into England, the Icelandic settlers were building their new commonwealth. And in 930 the ruling chiefs convened an assembly called the Althing — the world's first parliament, 300 years before our own.
Meanwhile, Icelandic poets were compiling one of the great treasures of world literature, the epic sagas that tell of settlers, warriors and heroes, as well as Norse gods such as Odin, Freya and Thor. They have been an inspiration for English writers ever since, above all JRR Tolkien, who borrowed their elves, dwarves and giants for his Middle-Earth stories.
In the Middle Ages, Iceland passed into the control of the kings of first Norway and then Denmark. Yet while its historic independence was lost, its culture survived, and by the 18th century it was winning admirers among London's Romantic poets.
The Poet Laureate Thomas Warton, for example, wrote “Runic Odes” extolling the virtues of the ancient Icelandic heroes. And in the 1780s, the Danish government even considered offering Iceland to the British in exchange for the Caribbean Crab Island, though the deal came to nothing.
But Britain did get its hands on Iceland eventually. On 10 May 1940, the day that Churchill became prime minister, British Marines landed in Reykjavik, launching a controversial invasion.
Technically Iceland was neutral, but with Nazi troops already in Denmark and Norway, Britain could take no chances. Astonishingly, it took just 746 raw recruits to occupy the island — and the only casualty was a marine who committed suicide on the way there because he was suffering so badly from seasickness.
In recent years, however, Iceland has been on the front foot. In the 1950s and 1970s its fishermen clashed with British ships in the three Cod Wars, and in recent years its bankers have invaded our high streets with the audacity and vigour of their Viking forefathers. But the coming months threaten to be rough for the little island republic — and its people may need all their Nordic stoicism to survive.
Reader views (5)
When did we start entrusting our money to a glacier off the coast of Scotland? I must have missed that meeting...
- Nobby Clark, Perth, Scotland, 08/10/2008 22:42
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So much for those of us who argued that Iceland could be a good role model, without having to be suckered by the 'EU'. Maybe it was only ever 'hot' money from Russia? (and the best of good luck to Russia by the way - people who defend their own interests). Anyway, props to Iceland for defending their Cod quotas from (us and) Brussels - now that's all they've got left, although actual fish smells less fishy than 'banking'...
- Steve, T Wells, 08/10/2008 18:24
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This article is just padding and should have been spiked. It tells us nothing about the storm which has hit hundreds of thousands of savers (not me thank goodeness).
- Alan Collis, Brussels, Belgium, 08/10/2008 12:06
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So much for British Icelandic ties when the Icelandic government will guarantee the bank deposits of Icelanders but not the bank deposits of three thousand British savers with accounts in Icesave.
- Derek, London, 08/10/2008 11:36
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The Baugur group , which owns large parts of the UK highstreet shops received the 'President of Iceland Export Award' in 2008 according to their website. What did they get he award for, exporting debt and misery?
- Adrian, London UK, 08/10/2008 11:34
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