Akureyri north Iceland Official Name: Republic of Iceland   Geography   Area: 102,845 sq. km. (39, 709 sq. miles); about twice the size of Ireland. Cities: Capital-- Reykjavik. Other towns -Kopavogur, Hafnarfjordur, Akureyri. Terrain: Rugged. Climate: Maritime temperate. Highest elevation: Vatnajokull Glacier, at 2,119 meters (6,952 ft.).   People   Nationality: Noun--Icelander(s). Adjective--Icelandic. Population: 300,000 + Ethnic group: Homogenous mixture of descendants of Norwegians and Celts. Religion: Evangelical Lutheran, 91%. Language: Icelandic. Education: Compulsory up to age 16. Attendance--99%. Literacy--99.9%. Health: Infant mortality rate--6/1,000. Life expectancy--men 76.3 yrs., women 80.8 yrs. National holiday: June 17, anniversary of the establishment of the republic. Flag: Red cross edged in white on a blue field.   GEOGRAPHY   Iceland is a volcanic island in the North Atlantic Ocean east of Greenland and immediately south of the Arctic Circle. It lies about 4,200 kilometers (2,600 mi.) from New York and 830 kilometers (520 mi.) from Scotland.   About 79% of Iceland's land area, which is of recent volcanic origin, consists of glaciers, lakes, a mountainous lava desert (highest elevation 2,000 meters--6,590 ft. --above sea level), and other wasteland. Twenty percent of the land is used for grazing, and 1% is cultivated. The inhabited areas are on the coast, particularly in the southwest.   Because of the Gulf Stream's moderating influence, the climate is characterized by damp, cool summers and relatively mild but windy winters. In Reykjavik, the average temperature is 11°C (52°F) in July and -1°C (30°F) in January.   PEOPLE   Most Icelanders are descendants of Norwegian settlers and Celts from the British Isles, and the population is remarkably homogeneous. According to Icelandic Government statistics, 99% of the nation's inhabitants live in urban areas (localities with populations greater then 200) and 60% live in Reykjavik and the surrounding area. Of the Nordic languages, the Icelandic language is closest to the Old Norse language and has remained relatively unchanged since the 12th century.   About 91% of the population belong to the state church, the Evangelical Lutheran Church, or other Lutheran Churches. However, Iceland has complete religious liberty, and other Protestant and Roman Catholic congregations are present.   Most Icelandic surnames are based on patronymy, or the adoption of the father's first given name. For example, Magnus and Anna, children of a man named Petur, would hold the surname Petursson and Petursdottir, respectively. Magnus' children, in turn, would inherit the surname Magnusson, while Anna's children would claim their father's first given name as their surname. Women normally maintain their original surnames after marriage. This system of surnames is required by law, except for the descendants of those who had acquired family names before 1913. Most Icelanders, while reserved by nature, rarely call each other by their surnames, and even phone directories are based on first names. Because of its small size and relative homogeneity, Iceland holds all the characteristics of a very close-knit society.   Cultural Achievements   The Sagas, almost all written between 1180-1300 A.D., remain Iceland's best known literary accomplishment, and they have no surviving counterpart anywhere in the Nordic world. Based on Norwegian and Icelandic histories and genealogies, the Sagas present views of Nordic life and times up to 1100 A.D. The Saga writers sought to record their heroes' great achievements and to glorify the virtues of courage, pride, and honor, focusing in the later Sagas on early Icelandic settlers.   Unlike its literature, Iceland's fine arts did not flourish until the 19th century because the population was small and scattered. Iceland's most famous painters are Asgrimur Jonsson, Jon Stefansson, and Johannes Kjarval, all of whom worked during the first half of the 20th century. The best-known modern sculptor, Asmundur Sveinsson (1893-1982), drew his inspiration from Icelandic folklore and the Sagas for many of his works.   The best known Icelandic writer in this century is the Nobel Prize winner Halldor Laxness. The literacy rate is 100%, and literature and poetry are a passion with the population. Per capita publication of books and magazines is the highest in the world. In a population of 265,000 people, 1993 data show five daily newspapers, 78 other newspapers, and 629 periodicals.   Kristjan Johannsson is Iceland's most famous opera singer, while pop singer Bjork is probably its best known artist in this century.   HISTORY   Iceland was settled in the late 9th and early 10th centuries, principally by people of Norse origin. In 930 A.D., the ruling chiefs established a republican constitution and an assembly called the Althingi--the oldest parliament in the world. Iceland remained independent until 1262, when it entered into a treaty which established a union with the Norwegian monarchy. It passed to Denmark in the late 14th century when Norway and Denmark were united under the Danish crown.   In the early 19th century, national consciousness revived in Iceland. The Althingi had been abolished in 1800 but was reestablished in 1843 as a consultative assembly. In 1874, Denmark granted Iceland home rule, which again was extended in 1904. The constitution, written in 1874, was revised in 1903, and a minister for Icelandic affairs, residing in Reykjavik, was made responsible to the Althingi. The Act of Union, a 1918 agreement with Denmark, recognized Iceland as a fully sovereign state united with Denmark under a common king. Iceland established its own flag and asked that Denmark represent its foreign affairs and defense interests.   German occupation of Denmark in 1940 severed communications between Iceland and Denmark. In May 1940, British military forces occupied Iceland. In July 1941, responsibility for Iceland's defense passed to the United States under a U.S. - Icelandic defense agreement. Following a plebiscite, Iceland formally became an independent republic on June 17, 1944.   In October 1946, the Icelandic and U.S. Governments agreed to terminate U.S. responsibility for the defense of Iceland, but the United States retained certain rights at Keflavik. Iceland became a charter member of the North Atlantic Treaty Organization (NATO) in 1949. After the outbreak of hostilities in Korea in 1950, and pursuant to the request of NATO military authorities, the United States and Iceland agreed that the United States should again be responsible for Iceland's defense. This agreement, signed on May 5, 1951, is the authority for U.S. military presence in Iceland. Iceland is the only NATO country with no military forces.   GOVERNMENT   The president, elected to a 4-year term, has limited powers. The prime minister and cabinet exercise most executive functions. The Althingi is composed of 63 members, elected every 4 years unless it is dissolved sooner. Suffrage for presidential and parliamentary elections is universal, and members of the Althingi are elected on the basis of proportional representation from eight constituencies. The judiciary consists of the Supreme Court, district courts, and various special courts. The constitution protects the judiciary from infringement by the other two branches.