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(20 May 1976) notes: col print location: iceland title: nato-iceland serviced date: 05/20/76 no: lnc 72842 date shot: recent length: 97 ft seconds: 2:35 sound: natsof date of arrival: film shows: american air force base at keflavik, interview with icelandic premier, soviet naval ships, british warships. lead in: iceland threatened in oslo on thursday (may 20th) to withdraw from the north atlantic treaty organisation if the fishing limits dispute with britain is not settled within six months. the threat came from icelandic foreign minister einar augustsson at a nato foreign ministers' meeting in oslo. he said nato must decide whether to sacrifice the military facilities it has in iceland for britain's continued fishing in icelandic waters. mr augustsson was referring to the united states air force base at keflavik, which is vital for watching the soviet navy in the north atlantic. feet r/secs 6 10 gv air base 13 21 aerial of soviet ships (2 shots) 26 42 gv planes on base (4 shots) 75 2:00 mcu hallgrimsson speaks 97 2:35 aerial of british frigates. commentary: the united states-run base at keflavik is considered by nato to be irreplaceable. long-range patrol aircraft use the base to monitor movements of the huge soviet northern fleet, said to comprise two hundred and thirty five surface ships and submarines. a recent nato study suggests that to replace this base, america would have to build four aircraft carrier task groups at the cost of twenty two thousand million dollars. so it't easy to see why nato is so anxious, now that iceland has threatened to close the base down over the fishing dispute with britain. although nato is unable to interfere directly, iceland's prime minister geier hallgrimmson said recently the meeting in oslo could help solve the fishing dispute. hallgrimsson: "i think nato cannot say something like this fishing dispute doesn't concern us, because it does. in the long run it weakens the foundations of nato and i am not certain if this will not have very serious effects in the future if nato is not able to do something in the matter. and it is indeed very serious if two nations within the nato alliance are not able to end a dispute between themselves in a peaceful manner. i think that is not in conformity with the nato charter and it is the obligation of nato not only to be a vessel against outside aggression, but one should expect that a prerequisite for that would be that there is no danger from within." iceland also said tonight that british naval frigates must be withdrawn outside the new limit before negotiations with britain could restart and that they will not stop gunboats harrassing british fishing vessels. all this leaves britain with the task of finding some face- saving solution to the dispute that will not look like abject surrender. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter:   / ap_archive   Facebook:   / aparchives   ​​ Instagram:   / apnews   You can license this story through AP Archive: http://www.aparchive.com/metadata/you...