In 1958, Iceland clashed with Great Britain in a dispute over fishing waters. In June, the tiny republic announced that it would extend its territorial waters from four miles from shore to 12 miles (6.4 - 19.3 km), beginning in September. It forbade people from other nations to fish within this 12-mile limit. It said that any who did so would be arrested and fined. Trawlers from many nations had been operating in the rich fishing banks around Iceland. Iceland claimed that they were depleting their supply of fish.

In September of 1958, Iceland sought to extend its territorial waters from four miles to 12 miles off shore. An unarmed Icelandic patrol took over a British trawler fishing within the 12-mile limit, but a nearby naval frigate peacefully "repossessed" it.

Great Britain protested to Iceland that the new 12-mile rule infringed the "freedom of the seas" and international law. International law has generally held that the territorial waters of a country extend only three miles from the coast, although it has occasionally been extended for special purposes. Great Britain said that its trawlers would continue to fish as before.

Several scuffles took place as Icelanders tried to board trawlers and arrest British fisherman. In September an unarmed Icelandic patrol took over a British trawler fishing within the 12-mile limit, but a nearby naval frigate peacefully "repossessed" it. The Icelanders came off second best. Their light coast-guard patrol boats were no match for the naval frigates protecting the British fisherman. Irate Icelanders stoned the British Ambassador's home in Reykjavik, but still, Great Britain and Iceland continued their NATO alliance.

The conflict was resolved in 1961 when Great Britain accepted the new limits. However, the dispute with Great Britain (known as the "cod wars") was renewed in 1972 when Iceland extended its territorial waters to 50 miles (80 km) offshore and forbade foreign fishing vessels in the new zone. An interim agreement was reached in 1973, whereby the British would limit their annual catch and restrict themselves to certain fishing areas and specified numbers and types of vessels.

This agreement expired in November of 1975 and again there was trouble. Iceland, again extended its territorial waters. This time to 200 miles (320 km) from its coastline. For seven months there were numerous conflicts between Icelandic Coast Guard vessels and British trawlers and frigates.

In June of 1976 an agreement was reached. British trawlers would be limited to 24 at any one time within the 200 mile area. A limit was placed on the amount of cod that could be caught annually and conservation areas were set up which were closed to British fishing entireley. This agreement lasted six months after which time all British fishing within the 200 mile limit would cease.

source: The World Book Encyclopedia, 1959 Annual Supplement; additional material: The Miranda Website

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