Iceland does not have an army unless one counts the toy soldier department in Hamleys, which is owned by the Icelandic company Baugur. Iceland is a country of fishermen, long-winded poets and delinquent bankers; a society of pacifists. So when Gordon Brown invoked anti-terror legislation to seize British assets of Landsbanki, the Icelanders were horrified.

Now Icelanders are hitting back with acts of civil resistance designed to embarrass the British Government. Icelanders young and old are declaring: “We are not terrorists!” Almost 40,000 people – more than 10 per cent of the nation, have signed a petition to express their outrage, declaring that Mr Brown unjustifiably used the AntiTerrorism Act against the people of Iceland for his own political gain.

The photographer Thorkell Thorkelsson organised a photo protest, encouraging Icelanders to pose with weapons to demonstrate the danger they posed to Britain. The weapons included a snowball, a gun made from Lego and a staple remover. On the surface, the campaign is good natured, an attempt to make light of the conflict. Mr Thorkelsson, however, stresses: “Using a terrorist law against Iceland is like using it against the Vatican.”

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts