I´d like to see Mr. David Kaplan find some corraboration for his statement. He will find that Iceland certainly was not a "proud ally" of Nazi Germany and to say so is not only slander, but simply untrue. On the second point, I´m afraid you´ve again got your facts wrong. What is gained, by promoting falsehoods?
First refugees travelling on Hungarian bus arrive at Austrian border (Reuters)
from the article: Iceland formally recognizes Palestinian state within 1967 lines