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The Socialist Party maintained cordial relations with the Communist Party Of The Soviet Union . 1939 the chairmanship was taken over by Einar Olgeirsson, after the previous non-communist chairman had left the party in protest against the war between USSR and Finland . During the Second World War the influence of the party grew. In the 1942 elections it won over its mother organization, the Social Democrats. The Socialist Party clearly supported the formation of the Icelandic Republic in 1944 . During the two first years of independece, the Socialist Party took part in a broad coalition government. The coalition broke down on the issue of the claims of the United States to have a military base in Keflavík , which the socialists opposed. In 1956 the Socialist Party created an electoral alliance with yet another left-wing split of the Social Democracy (led by the Trade Union leader Hannibal Valdimarsson ), thus forming the People's Alliance (AB, Alpýdubandalagid). In 1968 AB was reconstructed as a party and the Socialist Party dissolved into it. |
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