The World - News from Jan. 1, 1989

Panama’s Legislative Assembly approved a law strengthening trade ties with the Soviet Union, a move some politicians said was made necessary by U.S. trade sanctions. “The biggest motivator to approve this accord is the United States Administration, because . . . it has maintained its economic fence and forced us to look for other (trade) allies,” Luis Gomez of the ruling Revolutionary Democratic Party said. The legislation, approved 43 to 2 in the 67-seat assembly, allows the Soviet Union to set up a commercial office in Panama but falls short of an exchange of ambassadors.