VZCZCXRO1130
PP RUEHAG RUEHAST RUEHBW RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHRK #0093 1431656
ZNR UUUUU ZZH
P 221656Z MAY 08
FM AMEMBASSY REYKJAVIK
TO RUEHC/SECSTATE WASHDC PRIORITY 3658
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHXK/ARAB ISRAELI COLLECTIVE

UNCLAS REYKJAVIK 000093 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREF PGOV PHUM UNHCR KPAL SY IZ IC
SUBJECT:  ICELAND: PALESTINIAN REFUGEE ADMISSIONS REVEAL DISCORD, 
AMBIVALENCE 
 
¶1.  (U) Summary:  Iceland's recently-announced plan to accept 30 
Palestinian refugees has sparked new debate on societal tolerance of 
immigrants and again revealed deep divisions in the Liberal Party. 
Meanwhile, the town of Akranes, just outside Reykjavik, is poised to 
accept the refugees despite a loosely-organized petition drive 
opposing the plan.  End Summary. 
 
¶2.  (U) On May 6, the Icelandic Government approved a proposal by 
the Icelandic Refugee Council to offer asylum to up to 30 
Palestinian refugees in Iceland. The refugees would fulfill 
Iceland's UNHCR referral quota of 25-30 refugees a year.  The group 
is made up of single mothers and their children currently staying in 
the Al Waleed refugee camps close to Iraq's border with Syria.  As 
part of its proposal, the Refugee Council asked the government of 
the western Iceland town of Akranes if the town would be interested 
in receiving the refugees. On May 19, the town council decided 
unanimously to start talks with the Ministry of Social Affairs on 
receiving the refugees. 
 
¶3.  (U) The Refugee Council's proposal immediately sparked debate 
within the Akranes branch of the Liberal Party (LP), which is part 
of the governing majority on the town council.  Magnus Thor 
Hafsteinsson, the national LP Deputy Chairman and the party's first 
alternate town councilor in Akranes, opposed the reception of the 
refugees on several grounds. He said that the inhabitants had not 
been previously informed of the possible arrival of the refugees, 
and he also stated that the town was already short of funds to 
tackle an increase in the town's own social problems.  In response, 
on May 14 the LP's sitting town councilor, Karen Jonsdottir, left 
the party, citing her disagreement with Hafsteinsson's remarks. 
Jonsdottir switched ranks to the Independence Party (IP), giving the 
IP a single-party majority on the council. 
 
¶4.  (U) The refugee issue has sparked a debate in Akranes and 
divided the town into two opposing camps.  The opponents have even 
started a signature petition in the town against receiving the 
refugees, though the town council has been dismissive of what 
appears to be a poorly-organized effort.  This is the first time 
that refugee admissions have generated such a strong reaction in 
Iceland, despite the fact that the majority of the 227 refugees 
settled in Iceland since 1996 have also gone to smaller towns rather 
than Reykjavik and suburbs. 
 
¶5.  (SBU) Comment:  The signature petition and Hafsteinsson's 
comments are characteristic of growing xenophobic tensions in 
Icelandic society.  Iceland's extremely low unemployment and need 
for foreign labor means this friction cannot be ascribed to 
frustrated Icelanders' losing jobs to foreign immigrant labor. 
Rather, this appears to be a function of a homogenic society -- 
dating from the original Viking Age settlement -- coming into more 
frequent contact with other cultures, people of different skin 
color, and new residents who speak languages not understood by 
native Icelanders.  This is also the first time Iceland has agreed 
to accept refugees from the Middle East, an element which may be 
causing further discomfort. 
 
¶6.  (SBU) Comment, cont'd:  Additionally, Hafsteinsson seems to be 
making another run at trying out a nationalistic plank for the 
Liberal Party platform.  His previous attempt just prior to the 2007 
parliamentary elections gave the LP a short-term boost in polls but 
failed to bring long-term success as all other parties publicly 
announced they would not join a government coalition with the LP. 
In the end, the LP took just five percent of the vote nationwide. 
However, if Iceland's recent economic troubles worsen and 
unemployment becomes a significant problem, Hafsteinsson may find 
more fertile ground for his efforts. 
 
VAN VOORST