UNCLAS SECTION 01 OF 02 REYKJAVIK 000452

SIPDIS

SIPDIS

STATE FOR S/CT:RHONDA SHORE AND NCTC
OSLO FOR DATT
COPENHAGEN FOR LEGAT
ROTTERDAM FOR LCDR SPRINGER

E.O. 12958: N/A
TAGS: PTER ASEC IC
SUBJECT: ICELAND: 2006 COUNTRY REPORTS ON TERRORISM

REF: STATE 175925


1. Post submits the following narrative for inclusion in the 2006
Country Reports on Terrorism. Text of report will also be emailed
to EUR/NB and S/CT via unclass and classified email.


2. Begin text of submission:

Iceland

Iceland is a NATO ally and party to all 12 major UN conventions
against terrorism. Though the country does not have a military of
its own, in 2006 the government undertook efforts to review its
national security policy following the withdrawal of U.S. military
forces from Iceland. Iceland does not provide official support to
terrorist organizations and is a partner of the U.S. government in
counterterrorism efforts.

The Icelandic government does not provide sanctuary for terrorists
or terrorist organizations and has made strong efforts to ensure
that Iceland is not a haven for terrorist groups. In June 2006
Iceland passed the "Act to Counter Money Laundering and the
Financing of Terrorist Acts," which brought Icelandic law fully into
compliance with the Financial Action Task Force's recommendations
regarding terrorist financing. Icelandic authorities implement
asset-freeze requests from the United Nations 1267 Committee and
cooperate with U.S. government asset-freeze requests. As part of
its efforts to prevent trafficking in weapons of mass destruction,
Iceland is a member of the Proliferation Security Initiative and a
participant in the U.S. Coast Guard's International Port Security
Program. Iceland is a party to the Schengen Agreement and as such
consults closely with other Schengen states on border control and
security matters.

There are no known international or domestic terrorist organizations
operating in Iceland. In September 2006 the National Police
Commissioner's Office confirmed that it was investigating a case
involving a resident who had shown an interest in researching
explosives and bomb making. No charges were brought in the case,
but this was the first public confirmation that Iceland's police
conduct pre-emptive investigations of possible terrorist activity.
Further, on September 26, 2006 the government announced efforts to
strengthen its security and counterterrorism capabilities, including
among other actions a legal review of intelligence and information
sharing with foreign governments, the planned establishment of a
national security unit within the National Police Commissioner's
Office, and purchases of a new fixed-wing aircraft and patrol vessel
for the Icelandic Coast Guard (ICG).

With the closure of the Cold War-era U.S. Naval Air Station Keflavik
in September 2006, the governments of the U.S. and Iceland committed
themselves to developing new security arrangements focused on
countering terrorism and other emerging threats, such as
proliferation and trafficking. On October 12, 2006, Iceland's
Prime Minister and Foreign Minister and the U.S. Secretary of State
signed a Joint Understanding on defense and security issues,
detailing new initiatives in training, exercises, and intelligence.


During the year the Government of Iceland conducted several joint
counterterrorism training activities with the U.S. government. From
August 29-30, 2006, the ICG hosted Operation Northern Challenge, an
explosive ordnance disposal (EOD) and anti-improvised explosive
device exercise with participants from the ICG, the U.S., and five
other NATO and Partnership for Peace militaries. From October
12-17, the ICG's EOD unit and the National Police Commissioner's
"Viking Squad" counterterrorism unit provided security for the visit
of the amphibious assault ship USS Wasp; on October 16, the Viking
Squad and the EOD unit conducted counterterrorism training with
support from the Wasp's helicopter detachment.

Iceland supports NATO counterterrorism operations in Afghanistan
through the deployment of a mobile observation team to the
provincial reconstruction team in Ghor Province and its role as lead
NATO nation at Kabul International Airport. Iceland has also
deployed personnel to the Sri Lanka Monitoring Mission, which
reports violations of the cease-fire between the Sri Lankan
government and the Liberation Tigers of Tamil Eelam (LTTE).
Politically, Iceland supports OSCE counterterrorism efforts and has
also been active at the United Nations in supporting the passage of
a Comprehensive Convention on International Terrorism.

End text.


3. POC for this report is Political Officer Brad Evans,
EvansBR@state.gov, tel: +354-562-9100 ext. 2294, mobile:

REYKJAVIK 00000452 002 OF 002


+354-693-9212, estimated departure from post July 2009.

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