From English-language website: Reykjavík Grapevine:
That Time The United States Were Thinking Of Buying Iceland
"The population of Iceland is about 70,000, but in view of its pasture and arable lands, its valuable mines, its splendid fisheries, and its unsurpassed hydraulic power, it could, when fully developed, sustain a population exceeding 1,000,000. It has been greatly neglected by Denmark. The Icelanders complain of this, and look forward with hope to association with the United States.”
So reads “A Report on the Resources of Iceland and Greenland,” addressed to U.S. Secretary of State William H. Seward in 1868. Having negotiated with Denmark for the acquisition of the Caribbean islands St. John and St. Thomas, he thought the idea of obtaining Iceland and Greenland was “worthy of serious consideration” and requested “views and facts on the subject,” according to the report’s opening remarks.
The resulting 72-page report, which was written and researched by mining engineer Benjamin M. Pierce, is revealing of expansionist policies of the time and presents a rather fascinating picture of 19th century life in Iceland.
Some more:
Apparently getting wind of the report the following year, the New York Times ran an article titled “Iceland: Rumored Plan for the Annexation of the Island to the United States,” in which it noted that Icelanders “seem to know nothing of the intended transfer” and speculated that the idea was “not likely to be at all cordially received by ‘still-vexed’ islanders.”
But Iceland’s Independence hero Jón Sigurðsson had actually heard of the report, according to an article in socialist newspaper Þjóðviljinn from 1981, which quotes a letter that Jón penned to an Eiríkur Magnússon in 1868. “Perhaps we could exploit the plan itself, as the Danes are always eager to sate their lust for profit, and they were so happy to sell St. Thomas,” Jón reportedly wrote about the report. “Of course we would never go there, where they want to sell us, but it would be a kind of cause for termination and it would be a way to get the equivalent value of the Bjelke lands with leases and sub-leases, which would amount to something like 50 million dollars, in addition to other issues, that would be fun, to scare them with that.”
Fascinating - I spent two months backpacking through Iceland in 1974. Had a wonderful time - really great people and the scenery was jaw-dropping. I flew over on Icelandic Airlines which had the cheapest flights from Boston to Copenhagen stopping at Keflavik airport - I was one of about four people who deplaned.
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