In 1874, Denmark granted Iceland home rule, which again was expanded in 1904.

Iceland established its own flag and asked that Denmark represent its foreign affairs and defense interests; thus, the United States ambassador to Denmark conducted foreign relations between the United States and Iceland.

As a result, on April 10, the Parliament of Iceland elected to take control of their own foreign affairs.

The United States thus commissioned Lincoln MacVeagh as its first ambassador to Iceland on August 8, 1941.

MacVeagh presented his credentials to the foreign minister of Iceland on September 30, 1941.