WASHINGTON, July 30 (Xinhuanet) -- US President George W. Bush on Thursday signed an order officially lifting the sanctions imposed on Iraq 14 years ago, in a move to provide a legal basis for US firms to return to Iraq, follow the precedent of the United Nations and boost his campaign for reelection.

    "The removal of the regime of Saddam Hussein warrants the termination," Bush said.

    The sanctions were put in place on August 2, 1990, the same daywhen Saddam ordered Iraq's forces to invade neighboring country Kuwait. The sanctions had been repeatedly extended by the US government over the years.

    Given the fact that the government of Saddam Hussein was toppled more than a year ago, the order to end the sanctions came just too late.

    In the past year, the Saddam government was removed and the US Treasury Department reportedly lifted sanctions some time ago.

    Virtually US sanctions against Iraq came to a halt as soon as the US-led 160,000-strong coalition forces invaded Iraq in March 2003. Some big American companies started operation soon after thecollapse of the Saddam regime.

    In spite of the 14-year sanctions on Iraq, the US actually played a significant role in its survival during Iraq's war with Iran between 1980 and 1988.

    At that time, the then US President Ronald Reagan, determined to check its foe Iran, pumped in Iraq hundreds of millions of dollars in loan guarantees beside high-value military intelligenceto help it fight the war.

    Washington also green lighted sales of UH-1H helicopters and Hughes MD-500 Defender helicopters to Iraq, which, although sold as civilian aircraft, were quickly converted for military use.

    The US was not alone in helping Baghdad fighting Tehran, Frenchand German firms also took the chance to have rushed in Iraq largenumber of arms.

    In a recently published book "The Threatening Storm", its author Kenneth Pollack said, "By 1982, Iraq accounted for 40 percent of French arms exports... Paris sold Baghdad a wide range of weapons, including armored vehicles, air defense radars, surface-to-air missiles, Mirage fighters, and Exocet anti-ship missiles."

    Bush ended the sanction at a time when the interim government of Iraq has completely replaced Saddam's regime and Bush's foreignpolicies in Iraq and other Mideast countries came under strong criticism.

    Some political analysts here believe that the termination of the sanctions against Iraq is another significant step in Iraq following the handover of sovereignty to Iraqis on June 28.

    The lifting of the sanctions also serves to impress people thatit would lay a legal foundation and pave the way for American firms to resume normal trade with the war-wrecked Iraq, according to the analysts.

    The United Nations lifted economic sanctions against Iraq on May 22, 2003. By following the example of the United Nations, the Bush administration is trying to prompt more countries to get involved in Iraq's reconstruction, the analysts said.

    Meanwhile, the lifting of the sanctions would also boost Bush'scampaign for reelection. Bush needs to shake off the Democratic party's criticism on the deteriorating security situation in Iraq when the Iraq issue has become the biggest obstacle on Bush's way to a triumph in the November presidential election. Enditem