European Stars and Stripes (Newspaper) - September 21, 1990, Darmstadt, Hesse                                 s 1980 s tilt to Iraq hell amp a a Cdr yet a a 5mo0lp 66 Thanik kj6-me/ Mosgovi Memeti Ocop 6u 5sf?& e6sioo a the Erna Serene it of by Guy Gugliotta Charles r. Babcock and Benjamin Weiser Washington Post from the Early 1980s until the invasion of Kuwait aug. 2, iraqi Leader Saddam Hussein aggressively courted . Companies and government agencies securing food Loans and technology to help survive a bloody War with Iran and to promote his dreams of iraqi greatness. It was a Mutual seduction. The . Government bitterly opposed to Iran and its Leader Ayatollah Ruhollah Khomeini first tilted toward Iraq to ensure that Iran did not win the War later it became equally interested in iraqi Oil and Trade. Iraq a soviet client was anxious to forge closer ties to the United states after years of anti american rhetoric. The War had drained Iraq s Oil wealth plunged it into debt and left it nearly destitute. Before Iraq invaded Iran in 1980, it was one of the richest nations in the Middle East with hard currency reserves Between $25 billion and $38 billion. By 1982 it was All gone. A i Don t think there a any question he Saddam wanted to establish a much better relationship and get As much Good out of it As possible agricultural and High technology Quot said Richard l. Armitage an assistant Secretary of defense in the Reagan administration. The . Response was schizophrenic military and Trade officials differed sharply on whether to release sophisticated technology to Iraq that might be used to produce chemical or nuclear weapons. Agricultural interests clashed with Israel s supporters and others in Congress Over whether the United states should Export food to a nation that used Poison Gas and harboured terrorists. In the end Iraq largely won out. Presidents Reagan Saddam Hussein at the presidential Palace in Baghdad followed by unidentified iraqi officers while publicly Neutral in the Iran Iraq War the United states was willing to open the door to Iraq and keep it open. And Bush repeatedly opposed Congress proposed Trade sanctions against Iraq a the last time Only two Days before Kuwait was invaded. Between 1983 and 1989, annual Trade Between Iraq and the United states grew nearly sevenfold from $571 million to $3.6 billion. Using Loans from .-based Banks Many guaranteed by the Federal government Iraq during that period bought $5.2 billion in . Exports of food technology and Industrial goods. The United states in turn bought $5.5 billion in iraqi Petroleum Over the same period. Iraq sent High ranking ministers to promote its cause frequently crossing the Atlantic to buttonhole . Government officials and woo Grain company executives and Bankers. It also recruited boosters in the United states former diplomats business executives and a pair of Atlanta Bankers. Quot they sent people around saying they wanted help any kind of help and they set out to create a climate in this City partial to Iraq Quot said rep. Lee h. Hamilton d-ind., longtime chairman of the House foreign affairs subcommittee on Europe and the Middle East. Quot it was a real pitch and we were receptive because we were  the iraqis also benefited militarily from the relationship. While the . Government did not engage in arms sales to Iraq the Commerce department has approved $730 million in exports of sensitive . Technology to Iraq since 1985. Some of it was diverted to Iraq s nuclear chemical and missile programs Pentagon officials believe. A a . Customs agent who has been investigating the Sale of . Technology to Iraq said he has no doubt that such exports have augmented Saddam a military capabilities. Quot if god forbid one of our kids gets shot its going to be done by a soviet Bullet. If they Are exposed to chemical or biological attacks the rocket that delivered that chemical was probably provided by the soviets. But chances Are the trajectory of the rocket was set by an american computer and the design of that rocket was probably done by american technology Quot the agent said. On the Day Saddam a forces invaded Kuwait Iraq had a foreign debt estimated by . Export import Bank sources at $80 billion second in the developing world Only to Brazil a country with 15 times As Many people. Iraq owes Money to several West european countries Japan the soviet Union and most of the rest of the Eastern bloc. Kuwait and saudi Arabia hold half its debt. Iraq had already defaulted on most of its Loans banking sources said but the one country where it never missed a payment a right up to the August invasion a was the United states. Iraqis tilt toward the United states began in the Early 1980s during some of the darkest Days of the Iran Iraq War. Iraq attacked its neighbor in september 1980, but its Early advances had bogged Down resulting in a bloody standoff that favored Iran the More populous nation. Quot we were terrified Iraq was going to lose the War Quot said Geoffrey Kemp then head of the National Security councils Middle East Section. By 1982, Iran had destroyed iraqi Oil facilities at the Faw Peninsula and crossed iraqis Border to attack the port of Basra Iraq s second largest City. Quot our policy was never that we wanted Iraq to win the War Quot Kemp said. Quot it s just that we did t want Iran to  when Syria shut Down Iraq s Oil pipeline through that country iraqis Cash flow was limited to Revenue from its pipeline through Turkey. Quot they ran out of Money Quot said Marshall w. Wiley a former . Ambassador to Oman who formed the United states Iraq business forum in 1985 to promote . Investment in Iraq. Quot so they were looking for  it was an unaccustomed role for Iraq an insular Page 16 a a a the stars and stripes Friday september 21,1990