First Elements (10th Inf and 46th FA Bn) arrived Iceland 16 Sep 41
Iceland was an important stepping stone between Europe and the New World. It could be used as a refueling base for aircraft, and as an air and sea attack base for the Axis. Hitler several times toyed with the idea of a descent upon the island and laid preliminary plans for it. To forestall such a move British troops, soon joined by a Canadian force, had landed (Invaded is more accurate) Iceland on 10 May 1940. Icelandic annoyance with the British and Canadian garrison, and British losses in the war, which made a withdrawal of the Iceland garrison seem desirable, plus American concern for the Atlantic sea lanes, combined to bring Iceland within the American defense orbit.
Source: http://www.ibiblio.org/hyperwar/USA/USA-WH-Guard/USA-WH-Guard-18.html