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Last Modified: 11 Oct 2008
By: John Sparks

The prime minister of Iceland has accused the British government of an "attack on Iceland's interests".

Geir Haarde said he was considering legal action after Gordon Brown froze the assets of their failing banks in the UK.

Despite that, "significant progress" was reported from talks between Treasury officials and Icelandic officials on how British local authorities, charities and health trusts who have invested in Iceland, will be compensated.

The shopping tycoon Philip Green is in Reykjavik for talks with an Icelandic company which currently owns several High Street outlets in Britain.



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