A stronger Norway kept neutral in WWII

In this Scenario, Norway gained independence for three hundred years earlier (1600). After the complete defeat of Denmark in the Napoleonic Wars, it became neutral. The industrial & financial resources and the population were far stronger than the historical level, but the territory (without colonies) was without Finnmark and Troms (belong to Sweden).
In the Second World War, Germany abandoned the plan to invade Scandinavia because of fear fell into a long-term battle and the Navy's strength did not have much advantage (Just threatened Denmark to sign an unequal treaty).

I. The Germans wouldn't be able to use historical bases at the coastline of Norway for military operations (Since both Norway and Sweden were both NEUTRAL countries this time).

II. As the exchange for Germans, Norway could purchase about £1.5 million to £2.5 million worth of strategic materials (such as grains, crude oil, rare metals, etc.) for Germany from overseas each year. For Germany, it mainly used barter (gold, machinery, weapons, refined oil) to trade, and some of them were paid by Reichsmark or settled by bookkeeping.

III. Is this more cost-effective for Germany than in history? How much British and American could tolerate such a two-faced Norway, what kind of draw or warning action would them made?
 
There has to be something in it for the Allies.

1) Norway would have to look the other way at the Allies setting up secret intelligence gathering stations in Norway including tracking German U Boats trying to stop shipments of supplies going to the Soviet Union. This could include fishing boats that never seem to catch fish but spend a lot of time at sea fishing near major shipping lanes.
2) The Allies may want Norway to purchase certain war materials and then "resell" them to the Soviet Union.
3) Norway would need to accept Jewish refugees and other groups thus saving them from the camps.
4) I do not know if this is possible but maybe crippled long range bombers could try to make it to Norway to be interned versus crashing. Norway would be encouraged to have a active sea rescue for bombers that crash off the coast of Norway.
4) Finally, there would come a time when the Allies would pressure Norway to stop helping the Germans. The key is when the Germans are so stretched that they can not spare any troops or ships to attack Norway. I suspect that Norway would follow Sweden lead on when to start reducing support of Germany.
 
One issue is that if Norway is not taken by surprise , the KM is not strong enough for Germany to threaten Norway. Therefore there is no need to buy stuff for Germany as once warned ( by the Germans demanding Norway act as a conduct ), Norway can easily defend itself. OTL if the defenses had been ready and manned, the Luftwaffe could have blown up some buildings but the Heer would have failed to take a port leading to the KM being slaughtered by the RN for no gain.
As people say a POD in 1600 however makes it very hard to say what would happen as the butterflies are so big after 300 years that anything could be possible.
 

nbcman

Donor
According to this study of Norwegian Neutrality in the Inter-War years, the anti-military Norwegian Labour Party was in the control of the government from 1935 on and had a significant presence beginning in the 1920s. Funding for training of conscripts was drastically reduced after the Depression down to as few as 48 days so their military was effectively mothballed. Finally, the Winter War between the Soviets and the Finns distracted Norway into shifting almost 10k soldiers to the far north as well as prompted Norway to send some of the few artillery pieces and ammunition to Finland. Maybe a softer impact of the Depression on Norway (more money for military) plus keeping the Labour party as a minority (remove haphazard military decisions) could help with having a better prepared Norway in September 1939. Failing that, having the mobilized troops that were in the far north guarding against a Soviet attack in southern Norway would have gone a long way in blunting a German attack. But I don't see how Norway could get strong enough to be able defy a British restriction of their imports to do what is in the OP is suggesting with a post-1900 POD.
 
One issue is that if Norway is not taken by surprise , the KM is not strong enough for Germany to threaten Norway. Therefore there is no need to buy stuff for Germany as once warned ( by the Germans demanding Norway act as a conduct ), Norway can easily defend itself. OTL if the defenses had been ready and manned, the Luftwaffe could have blown up some buildings but the Heer would have failed to take a port leading to the KM being slaughtered by the RN for no gain.
As people say a POD in 1600 however makes it very hard to say what would happen as the butterflies are so big after 300 years that anything could be possible.
Land Force: 10 Infantry brigades, 1 Armored brigade and 12 mobilized Home Guard brigades.
Naval Force: 2 Battlecruisers, 7 Light cruisers, 16 Fleet Destroyers, 11 Submarines and 25+ PT boats.
Air Force: 110 fighters used DB601 engine (equal to Bf 109E), 90 fighters used R-1820 engine (equal to I-16), 50 He 111 bombers, 60 SBD dive bombers.
 
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