NATION : Panama Emergency Lifted

President Bush today lifted the state of emergency against Panama, a formal step toward returning to normal trade and economic relations.

The state of emergency was imposed by President Reagan on April 8, 1988, during the regime of Gen. Manuel Antonio Noriega. He was deposed during the U.S. invasion in December, and a new government was installed.

Although no elections have been held since then, the Bush Administration considers the U.S.-installed government to be democratically elected.

That is because President Guillermo Endara was seen by independent observers as the obvious winner in last May’s election, which was invalidated by Noriega.

“The restoration of a democratically elected government in Panama has ended the unusual and extraordinary threat to the national security, foreign policy and economy of the United States previously posed by the policies and actions of Manuel Antonio Noriega in that country, and the need to continue the national emergency,” Bush said in an executive order lifting the state of emergency.