European Stars and Stripes (Newspaper) - September 21, 1990, Darmstadt, Hesse                                Crisis in the  plated nation that was almost xenophobic about protecting its financial Independence. Before the War Iraq Aid Cash for nearly All its foreign purchases. Quot it was part f their colonial past Quot said James Placke a former Deputy Distant Secretary of state for the Region. Quot they preached debt with the idea that it was  overnight Iraq s debts to other nations exploded $1.5 Jon each to France Italy and Germany almost $1 billion o Japan. Iraq managed to defer payment for two years. The United states escaped this first rude Awakening. Rade was minimal Between the two countries which had Thad full diplomatic relations since the 1967 War in the Iddle East. In Baghdad the . Government was presented by an interests Section in the belgian embassy. Soon the relationship began to change. In Larch 1982, the state department removed Iraq from its Joist of countries supporting terrorism making Iraq eligible for a Fuller Range of Trade and credits with the United states. . Officials justified the action by saying Saddam had diminished his role in International terror. That was a cover according to Noel c. Koch then the defense departments director for counter terrorism programs Quot no one had any doubts about his continued involvement with terrorism Quot Koch said. Quot the real reason was to help them succeed in the War against  it did not take Long for american businesses to make overtures to iraqi officials and for Iraq to respond. One sunday morning in Denver Ghaham Aziz head of Iraq s Grain Board met with . Grain representatives and a department of agriculture official o arrange $300 million in . Guaranteed Loans to buy Rice and wheat. A the told me they wanted to strengthen doth their economic and political ties with the United states Quot recalled Mel Sims the official. Quot they wanted develop into a Long term  Early in 1983, iraqis foreign minister Saadoun Hammadi met with Secretary of state George p. Shultz and other senior state department officials. A it was a very Frank discussion Quot recalled Nicholas a. Veliotes Hen assistant Secretary of state for the Middle East. He said we want help from  Quot Hammadi said he knew the United states was Losely Allied with the saudis. Quot they re our friends too Quot elites recalled Hammadi saying. Quot they have lots of health and Oil. But Don t confuse that with Power. We rave the Power. Quot think of it As a Long term investment Quot Hammadi said. While publicly Neutral in the Iran Iraq War the United states was willing to open the door to Iraq and keep it open. Iraq began treating the . Interests Section in Baghdad As a virtual embassy. In late 1983, Saddam sent Nizar Hardoon to Washington As his diplomatic representative. It was an inspired Choice. Hardoon perfected his English and became a master of the Washington scene. To his own parties he invited policy makers from the state department and the White House As Well As academics journalists jewish leaders and members of Congress. He was Good at promoting the image of a new Iraq modern moderate and pragmatic. Leading newspapers printed glowing profiles of him. In a later article in the Washington Post entitled Quot How to survive in Washington Quot Hardoon wrote that Quot everything and everyone is workable depending on How you approach them and How much time you  on nov. 26,1984, just after president Ronald Reagan was re elected the United states restored full diplomatic relations with Iraq. It was a controversial decision for All iraqis image making there were signs that Saddam Hussein had things other than Grain on his shopping list. Eight months earlier . Customs had seized a half ton of potassium fluoride destined for iraqis Quot ministry of  potassium fluoride is a principal ingredient in nerve Gas. Because there was an embargo on . Arms shipments to Iraq and Iran Iraq could not legally buy .-made weapons. Instead Iraq sought with the approval of . Officials intelligence and american technology. In 1984, Hardoon and other iraqi officials began to hold secret meetings with Cia director William j. Casey who passed along sensitive satellite reconnaissance photographs to assist iraqi bombing raids on key iranian targets according to a 1986 report in the Post. Since 1985, the Commerce department has granted 486 licenses for shipments of sensitive technology to Iraq after being assured that it was intended for nonmilitary purposes. A total of 160 were pending at the time of the Kuwait invasion. Quot the iraqis saw it As in their Long term interest to get As much technology from us As possible Quot said Stephen Bryen a former Pentagon official whose office complained repeatedly that the technology could be National geographic a Monument of Saddam a Qadi Siya martyrs a the 150-foot-High tiled dome split in half is a memorial to iraqis killed during the War with Iran. It also recalls a seventh Century Bathe in which arabs Defeated persians. Used for military purposes. Quot their strategy was to try and have some fail Safe weapons capability so they could pursue expansion without risk of serious  defense department officials repeatedly objected to the Sale of computer technology according to internal government documents. In one Case the Pentagon said it was Quot inclined to deny completely this Export because of the High likelihood of military end  in a second Case defense officials said Quot this system has uses in the production of chemical weapons and we have no credible assurances that it will not be used in that  the department called a third system Quot Ideal Quot for designing and testing weapons and rejected Iraq s Contention that the computers were for bookkeeping As Quot not  the sales went through anyway. Dennis e. Kloske Commerce undersecretary for Export administration said in an interview that his department had no proof that the technology was to be used for military purposes and that in the end defense department officials acquiesced. After years of improving relations the Iraq-. Courtship took a temporary nosedive in november 1986 with the disclosure that the United states had secretly sold arms to Iran. But the damage was repaired when the United states played a major role in the final stages of the Iran Iraq War. In 1987, Iran threatened to attack Oil tankers from Kuwait which was iraqis ally at the time and had Given Iraq huge Loans for the War. To protect the tankers the . Government announced that it would Quot re Flag Quot them and escorted them through the persian Gulf. About the same time an event occurred that could have upset the relationship again. An iraqi Jet hit the Stark with a French made exocet missile killing 37 american sailors. Saddam swiftly apologized called it an Accident and paid $27 million to the victims families. In August 1988, the Long and bloody War Between Iraq and Iran ended in a cease fire. The .-Iraq relationship continued to flourish Iraq still wanted . Technology and know How to promote its Industry and rebuild and develop its military capacity. The United states wanted iraqi Petroleum and Export markets and overlooked warning signals about Saddam s intentions. Immediately after the cease fire Saddam attacked iraqis kurdish minorities with Poison Gas. Then in late 1989, Iraq announced that it had launched a rocket capable of carrying a satellite a or a warhead. Last Spring there were More troubling developments . Customs agents blocked iraqi efforts to Export electrical devices that could be used to trigger nuclear weapons. British authorities seized parts of a huge Cannon that could deliver nuclear or chemical warheads. Saddam executed a British journalist for alleged spying. Some members of Congress pressed for sanctions against Iraq but the Bush administration opposed them. At a congressional hearing last april 26, several lawmakers expressed astonishment at the administrations position. Quot How far must they go before the administration embraces a much tougher policy Quot asked rep. Mel Levine a Calif. Quot what is the positive conduct you Are looking for and what negative conduct would finally trigger an administration in the direction of sanctions Quot testifying was John h. Kelly assistant Secretary of state for near Eastern and South asian affairs Quot you have put your Finger congressman on the dilemma one faces in dealing with a regime like this Quot Kelly replied. A we want to see them Stop violating Laws of the United  Kelly argued throughout the hearing however that sanctions were not the answer. Quot they would Hurt . Exporters and Worsen our Trade deficit Quot he said. In late july As 100,000 iraqi troops massed on the kuwaiti Border Kelly returned to Capitol Hill. He said the administration was Quot profoundly concerned Quot about Iraq but still opposed Trade sanctions. Quot we believe that what you need Are devices that allow you to modulate policies toward countries not a meat a  two Days later Iraq invaded Kuwait. Friday september 21, 1990 the stars and stripes a a a Page 17