From good ol’ Wikipedia:
“After the German occupation of Denmark on 9 April 1940, Althingi (Parliament) declared that the Icelandic Government should assume the Danish king’s duties and take over implementation of foreign affairs and other matters previously handled by Denmark at Iceland’s request. A month later, British Armed Forces occupied Iceland, violating Icelandic neutrality.”
As the game’s historical starting date is June '40 (post-Dunkirk), I figure it’ll start out as a UK territory. Whatever the case, I think it’s safe to say that the Germans will have more pressing things to worry about than taking Iceland off of the Allies. It’ll be a stopping-over place for US planes, with the chance to scramble to defend convoys against Axis naval units, and that’s about it.
So I think there’ll be an air base there for sure, but I don’t think there’ll be any naval base. Nor do I think that there’ll be a special rule to ‘transfer’ it to the US. Remember Larry’s maxim of simplicity in game design. That probably means we won’t be seeing any Danish roundels. :wink: