When Denmark was invaded by Nazi Germany in 1940, Iceland found itself in the peculiar position wherein its king, Christian X, who was also king of and resided in Denmark, was effectively cut off and unable to perform his constitutional duties, such as passing bills and exercising the royal prerogative, in Iceland.
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This gave Christian X and his ministers time to confer with the Danish Army chief General William Wain Prior.
Contrary to most other governments of the Nazi-invaded countries, King Christian X of Denmark and his government ordered the army and navy to stop fighting, and chose to remain in their country also under the occupation, which is believed to have contributed to the Nazi years being more lenient in Denmark than in other countries under Hitler's control.