Regeanomics: Supporting Iraq

In following up on reading newly de-classified documents regarding US relationships with Iraq in the 1980's, I found this mega-trove. It contains government documents like this one, which states: ...Once the door is opened to dual use items being approved to non-nuclear Iraqi entities, it makes no sense to deny them to nuclear entities... I recommend we begin approving such innocuous exports but delay implementation for a few months so that, at least, Congressional perceptions could be lessened... Selling "innocuous exports" to Iraqi "nuclear entities" was recommended in May 1984. Wonderful. Another revealing document is here, where U.S. interests in improving U.S.-Iraq ties "remain undiminished" despite revelations of Iraq's use of chemical weapons: ...Bilateral relations were sharply set back by our March 5 condemnation of Iraq for CW (Chemical Weapons) use, despite our repeated warnings that his issue would emerge sooner or later...They (SoS Schultz and Undersecretary Larry Eagleburger) emphasized that our interests in (1) preventing and Iranian victory and (2) continuing to improve bilateral relations with Iraq, at a pace of Iraq's choosing, remain undiminished ... This message bears reinforcing during your discussions. We officially condemn chemical weapons use, but this does not deter our desire to improve bilateral Iraqi relations. We also had issued "repeated warnings that this issue would emerge". Why all the assistance and equivocation on Iraq's behalf? Maybe this will help explain: ...Aziz (iraqi official) said that Iraq appreciated US support for increasing Iraq's capacity to export oil. When Heussein heard of the US interest in a pipeline through Jordan, this project began to receive serious attantion...When I (US) reiterated our desire to avoid escalation on the gulf while helping Iraq increase its oil exports, Tariq Azaz restated the Iraqi position and added that before the end of this week an official statement will be issued reiterating Iraq's right to use ALL (my emphasis) of its military capabilities (chemical weapons). Oil again. Be honest - are you really surprised?