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### Viewing cable 07REYKJAVIK69, ICELAND UNVEILS PLANS FOR UNIVERSITY ON KEFLAVIK BASE ONE

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07REYKJAVIK69 | 2007-03-16 17:05 | 2011-01-13 05:05 | UNCLASSIFIED | Embassy Reykjavik

`

    VZCZCXYZ0010
    PP RUEHWEB

    DE RUEHRK #0069 0751728
    ZNR UUUUU ZZH
    P 161728Z MAR 07
    FM AMEMBASSY REYKJAVIK
    TO RUEHC/SECSTATE WASHDC PRIORITY 3202
    INFO RUEHNO/USMISSION USNATO 0241
    RHEHNSC/NSC WASHDC
    RUEKJCS/JOINT STAFF WASHDC
    RUEKJCS/SECDEF WASHDC
    RUEHNY/AMEMBASSY OSLO 0291

` `

    UNCLAS REYKJAVIK 000069

    SIPDIS

    STATE FOR EUR/NB AND EUR/PPD
    OSLO FOR DATT

    SIPDIS

    E.O. 12958: N/A
    TAGS: NATO MARR PREL KPAO IC

    SUBJECT:  ICELAND UNVEILS PLANS FOR UNIVERSITY ON KEFLAVIK BASE ONE
    YEAR AFTER BASE CLOSURE ANNOUNCEMENT

    ¶1. Summary:  The one-year anniversary of the March 15, 2006
    announcement of the closing of U.S. Naval Air Station Keflavik
    (NASKEF) passed quietly, marked only by the announcement that part
    of the former base will become a university-level institution
    focusing on international education and technology.  End Summary.

    ¶2. There was no media coverage of the base closing in the weeks
    leading up to the anniversary of the announcement.  On March 14, the
    day before the anniversary, Prime Minister Geir H. Haarde mentioned
    in a speech to the Althing (Parliament) that the base closing,
    although unexpected, had resulted in the transfer of valuable
    property to the Iceland and opened economic development
    opportunities.

    ¶3. Haarde's speech was a prelude to a ceremony held in the base's
    former chapel on March 15 unveiling the plans for a university-level
    education center.  The ceremony was covered March 16 by leading
    daily Morgunbladid, under the headline, "Moving Forward at Keflavik
    Base."   During the ceremony local officials of Reykjanesbaer, the
    Keflavik Airport Development Corporation (Kadeco) and the University
    of Iceland signed a declaration of intent in cooperation with
    several business enterprises to establish a new international
    academic community on part of the former base.  The plan is to
    exploit the area's strengths including energy, air traffic and
    services and international affairs.  Representatives of businesses,
    including Icelandair, The Blue Lagoon, Glitnir bank, Geysir Green
    Energy, and the air traffic control Flugstodir, were also present.

    ¶4. Local officials could barely contain their glee. "We are forging
    plowshares out of swords," declared Reykjanesbaer Mayor Arni
    Sigfusson at the signing ceremony.  He said one of the most
    attractive characteristics of the base is its close proximity to
    Keflavik International Airport.  "You could say this is an ideal
    location."  In a later interview with nationwide broadcaster
    RUV-Radio, Mayor Sigfusson said the base had "first-class"
    facilities, and that the sports facilities, which include a
    gymnasium, large indoor swimming pool and gymnastic equipment, are
    probably the best in the entire country.

    ¶5. Runolfur Agustsson, former rector at Bifrost University, has been
    studying the feasibility of a university at the base site.  He said
    the aim of the educational center will be three-fold:  to strengthen
    the general educational level in Reykjanesbaer, to strengthen
    vocational training in the area, and to stress university-level
    education in English to attract more foreign students and teachers.
    He said the structure of the educational center has not yet been
    determined, but he believes a university preparatory department
    could begin operations in the fall. "We foresee an academic
    community of 1800-2000 people in seven years' time," he said.
    Agustsson said he expects the University of Iceland to be the key
    participant in the project.

    ¶6. The CEO of Kadeco, Jon Astradur Jonsson, told post that the
    university project is not the only project planned for the base.  He
    said that there are still several others in the works.  Jonsson said
    that the buildings are pretty much in "move-in" condition for the
    university, so minimal work will need to be done.

    ¶7. Embassy Comment:  The lack of media and press attention to the
    anniversary of the announcement underlines that the steam has gone
    out of the issue of the base closure-as Social Democratic Alliance
    leader Ossur Skarphedinsson told the Ambassador this week, Iceland
    has "moved on to other issues."  The reiteration at the ceremony
    yesterday that the U.S. had left the facilities in first-class
    condition was a welcome acknowledgement of the fine work of former
    base commander Captain Mark Laughton and his team in maintaining and
    then shutting down the base.  The establishment of a university on
    the former base will be an excellent use of the real estate and
    facilities we turned over, and will have a permanent impact on the
    wellbeing of the Icelandic public.

    VAN VOORST

`