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It was a strategic base for the Allies in the Atlantic. Would the Axis navy be able to invade it?
along the same lines, Adm. Raeder schemed a u-boat base on Faroe Islands https://en.wikipedia.org/wiki/British_occupation_of_the_Faroe_Islands
if they had a more robust navy that might have been seized along with Norway. at about half the distance of Iceland from Bergen, Norway, it might at least be feasible to re-supply by air and u-boat? (but the British built the first proper airport)
Even if the ASBs put a few battalions of Germans on Iceland, how do they keep them supplied? Long range FWs could reach there, but their capacity is pretty minimal, and how do you refuel them? How do the Germans on Iceland keep the British or Americans from landing troops elsewhere on the island - too many places to do this, the US/UK has absolute maritime superiority and aircraft carriers, and trying to giuard all the potential landing areas with any force the Germans might put on Iceland is impossible.
RN was useless? Even when the RN was at disadvantage, they inflicted more casualties on the KM such as the 1st Battle of Narvik. Even the boneheaded loss of HMS Glorious had the RN inflicting sufficient damage on one of the Twins and a subsequent sub attack to put both of them out of action for months.Iceland could be stormed in the opening phase of any Scandinavian invasion with a regiment or two ...in fact such an operation was indeed planned, Icarus I think it was.
RN was pretty useless back then and could not prevent such a move . They couldn't find anything in the heavy seas around the UK, which is why most blockade runners got back to Germany in the first year of the war. Likewise most single merchant vessels could sortie to Iceland and get through , since they were relatively invisible on the open seas full of other merchant vessels -neutral or otherwise. The degree to which they could return would depend on RN/KM efforts to interdict them or KM counter moves.
Type II U-Boat could be valuable in isolating Iceland from RN intervention, but dispatching anything more would be a loss to the commerce war. RN/RM could raid Iceland at a cost to both sides, but USA would never get involved - due to Roosevelt refusal to budge , until Gallop poll results shifted dramatically...which didn't happen until weeks/months after Pearl Harbour.
Iceland could be stormed in the opening phase of any Scandinavian invasion with a regiment or two ...in fact such an operation was indeed planned, Icarus I think it was.
RN was pretty useless back then and could not prevent such a move . They couldn't find anything in the heavy seas around the UK, which is why most blockade runners got back to Germany in the first year of the war. Likewise most single merchant vessels could sortie to Iceland and get through , since they were relatively invisible on the open seas full of other merchant vessels -neutral or otherwise. The degree to which they could return would depend on RN/KM efforts to interdict them or KM counter moves.
Type II U-Boat could be valuable in isolating Iceland from RN intervention, but dispatching anything more would be a loss to the commerce war. RN/RM could raid Iceland at a cost to both sides, but USA would never get involved - due to Roosevelt refusal to budge , until Gallop poll results shifted dramatically...which didn't happen until weeks/months after Pearl Harbour.