[3] During the First Cod War of 1958, Jósepsson's links with the USSR and communist ideology brought him into conflict with other members of the government and the opposition Independence Party (Iceland).
For example, While Iceland tried to get support for its extension of its fishing limits at the Nordic fisheries conference, Jósepsson was in the USSR negotiating loans for new trawlers.
The opposition Independence Party accused that Jósepsson's actions of created a belief that the Icelandic extension was inspired by Russia which used it to also support Communist China's extension to a 12-mile limit.
[4] In addition, Jósepsson was accused by the conservative newspaper Morgunblaðið of being influenced by the USSR who were trying to alienate Iceland from the Western Bloc and NATO.
[5][6] In this, even the normally supportive social democratic newspaper Alþýðublaðið argued that 'The Communists' efforts to use the fishery limits issue to alienate Iceland from the democratic countries are extremely dangerous to Iceland's cause...’.