lowing the German occupation of Denmark and Norway on April 9, four warships approached Reykjavík and anchored in the harbor. Many citizens were relieved to find that they were British rather than German. In a few hours, the allied occupation of Reykjavík was complete. There was no armed resistance and taxi and truck drivers even assisted the invasion force which had no motor vehicles initially. The Icelandic government had received many requests from the British government to consent to the occupation, but they always declined on the basis of the Neutrality Policy. For the remaining years of World War II, British and later American soldiers built bases in Reykjavík; the number of foreign soldiers in Reykjavík became about the same as the local population of the city.
The economic effects of the occupation were quite positive for Reykjavík: the unemployment of the depression years vanished and a lot of construction work was done. The British built Reykjavík Airport, which is still in service today, mostly serving domestic flights; the Americans built Keflavík Airport, which later became Iceland's primary international airport, situated 50 km from Reykjavík. In 1944 the Republic of Iceland was founded and a president elected in popular elections replaced the King; the office of the president was placed in Reykjavík.
Post-war development
In the post-war years, the growth of Reykjavík accelerated. A mass exodus from the rural countryside began, largely due to improved technology in agriculture that reduced the need for manpower, and because of the population boom resulting from better living conditions in the country. A once primitive village was rapidly transformed into a modern city. Private cars became common and modern apartment complexes rose in the expanding suburbs. Much of Reykjavík lost its village feel. In 1972, Reykjavík hosted the world chess championship
