In 1956 the centre-left government came to power under a leadership of strong centre party Framsóknarflokkurinn (Progress Party) with a Co-op background (a Esso beneficiary) along with Alþýðuflokkurinn (The People’s Party) a classical Nordic anti-communist social democratic party, (a BP beneficiary) and Alþýðubandalagið (The Peoples Alliance) a left social-democratic party, considered by the US as “communists” and announced their intention to close down US military activity on Keflavík-airport and at same time the government also moved the fishing limits from 4 miles to 12.
The British send in the Navy to protect British trawlers and the Icelandic government promptly turned to the Americans and demanded that they talk the British out of the fishing limits before any further talk about the Keflavík base would continue. Little later in 1958, the government was brought down by a huge corruption case called The Esso affair. [9] [9a] A huge quantum of oil and related products were imported by the US army to the Keflavík base and sold to Esso without tax and then sold by Esso to Icelandic customers with tax. It has never been confirmed whether the three top army brass removed from the base afterwards got promotion or prison sentence.
In 1959 after the Eisenhower administration had reacted to a threat about the future of American military presence in Iceland, (Vice President Nixon was a specialist in toppling governments), made by at that time centre-left government, by using Esso as “corruption” tool on the Framsóknarflokk. In the elections in the wake of the Party’s disgrace, a big victory brought to power a strong government consisting of two parties, Sjálfstæðisflokkurinn (The Independence Party) a long time dominant in Icelandic politics, anti-communist, (a Shell beneficiary) very pro-American/NATO, right party and Alþýðuflokkurinn (The People’s Party). A agreement was made which allowed the US to keep a naval air base at Keflavik airport for time of being.
In 1971 after twelve years, a centre-left government took power again under the leadership of the centre party Framsóknarflokk again, along with Alþýðubandalagið (The Peoples Alliance) and also in the government were some weak freelance social democrats elements.
The government declared a new fishing limits from 12 to 50 miles and later to 200 miles. The British send in the Navy. The government start the termination of the military agreement between Iceland and the US. Some part of history was going to repeat itself.
In order to bring down this time, a centre-left government who had set in motion termination of this important US agreement between the two states, there was this little plan.
The idea was to discredit key minister and his party by corruption charges and try to force early election under such conditions. Certain political elements figured out that if they could destabilize the very fragile government by discrediting a key player, in this case the Prime/Justice minister, Ólafur Jóhannesson [10], from the all important centre party, Framsóknarflokk, they could bring about a desired change of government and thus keep the military agreement in place.
The way to take down the Party, Framsóknarflokk, this time around, was to take advantage of a connection between the Party and a popular nightclub “Klúbburinn” (The Club) in Reykjavík which operated in a building owned by the Framsóknarflokkurinn and build up a corruption rumor. Place like this and all others “nightclubs“ in Reykjavík at that time, were open between 2100 and 0100, popular and safe places as such.
Kristján Pétursson a Deputy Chief Custom and Immigration Officer on Keflavík international Airport, a fairly well known character with a strong alleged ties to US intelligence services, going back to 1957, when training at Fort Gordon [11], Georgia USA, who later boasted of in his memories, that he had been declared Persona non grata in 1960 for his part in the Esso affair. In his own words -That the ministry and his police superiors refused to take responsibility for his actions without dismissing him-. [11a p.99] K Pétursson appears on the scene in the summer of 1972 in the role of a self-degleard narco agent and becomes fully involved in this conspiracy for its duration, along with some Icelandic officials like Deputy State Prosecutor Hallvarður Einvarðsson [12] and others less visible in the beginning.
Those seen in the early stage this conspiracy or the original conspiracy, called “Klúbbmál“, are considered to be Icelandic arm of US Intelligence service’s under the control of the long time powerful Police Chief of Reykjavík, Sigurjón Sigurðsson [13] a well known nasi-sympathiser before war and installed as police chief in 1947 amid the cold war to serve to 1985.
In 1972 his deputy Ásgeir Friðjónsson [14] became the only judge of newly formed narco court, FED (FíkniefnaDómstóllinn) who basically did plain fundamental things like wiretapping, spying on and interrogate people, from where K Pétursson operated and found his victims in this case, although he was never the courts officially agent. The similarity with the then also newly formed Nixon’s DEA in 1972, with its heavily infested CIA connectivity is noticeable [15][15a].