industry, but the Great Depression hit Reykjavík hard with unemployment, and labour union struggles sometimes became violent. World War II On the morning of 10 May 1940, following the German occupation of Denmark and Norway on 9 April 1940, four British warships approached Reykjavík and anchored in the harbour. In a few hours, the allied occupation of Reykjavík was complete. There was no armed resistance, and taxi and truck drivers even assisted the invasion force, which initially had no motor vehicles. The Icelandic government had received many requests from the British government to consent to the occupation, but it always declined on the basis of the Neutrality Policy. For the remaining years of World War II, British and later American soldiers occupied camps in Reykjavík, and the number of foreign soldiers in Reykjavík became about the same as the local population of the city. The Royal Regiment of Canada formed part of the garrison in Iceland during the early part of the war. The economic effects of the occupation were positive for Reykjavík: the unemployment of the Depression years vanished, and construction work began. The British built Reykjavík Airport, which remains in service today, mostly for short haul flights (to domestic destinations and Greenland). The Americans, meanwhile, built Keflavík Airport, situated west of Reykjavík, which became Iceland's primary international airport. In 1944, the Republic of Iceland was founded and a president, elected by the people, replaced the king; the office of the president was placed in Reykjavík. Post-war development In the post-war years, the growth of Reykjavík accelerated. An exodus from the rural countryside began, largely because improved technology in agriculture reduced the need for manpower, and because of a population boom resulting from better living conditions in the country. A once-primitive village was rapidly transformed into a modern city. Private cars became common, and modern apartment complexes rose in the expanding suburbs. In 1972, Reykjavík hosted the famous world chess championship between Bobby Fischer and Boris Spassky. The 1986 Reykjavík Summit between Ronald Reagan and Mikhail Gorbachev underlined Reykjavík's international status. Deregulation in the financial sector and the computer revolution of the 1990s again transformed Reykjavík. The financial and IT sectors are now significant employers in the city. The city has fostered some world-famous musicians and artists in recent years, including musicians Björk and Ólafur Arnalds; bands Múm, Sigur Rós and Of Monsters and Men; writer Sjón; and visual