AMSTERDAM (Reuters) – Honduras has withdrawn a case lodged at the UN’s highest court against Brazil as tensions have since eased in a dispute over Brazil’s allowing ousted President Manuel Zelaya to stay in one of its embassies.

The Honduras de facto government started proceedings at the world court in October to stop Brazil giving refuge to Zelaya in its embassy in Tegucigalpa. Brazil had disputed the move, arguing Honduras had no standing to file it. 

But The Hague-based International Court of Justice said yesterday that Honduras had asked for the case to be withdrawn on April 30 and the court granted the request on May 12.

Zelaya had initially taken refuge in the Brazilian embassy in the Honduras capital of Tegucigalpa after a coup forced him from power last year, but he later fled into exile in the Dominican Republic, ending a months-long political crisis.

In January, new Honduras president Porfirio Lobo, an opposition leader elected in November, took office but countries from the Unasur political grouping of South American nations, including heavyweight Brazil, have shunned contact with him.

Lobo has been recognised, however, by the United States, the European Union and most of Central America and although Brazil has not ruled out relations with the new government, it first wants a common position with the region.