and they STILL couldn't defeat them.
Initially, Iraq advanced far into Iranian territory, but was driven back within months.
By mid-1982, Iraq was on the defensive against Iranian human-wave attacks. The U.S., having decided that an Iranian victory would not serve its interests, began supporting Iraq: measures already underway to upgrade U.S.-Iraq relations were accelerated, high-level officials exchanged visits, and in February 1982 the State Department removed Iraq from its list of states supporting international terrorism. (It had been included several years earlier because of ties with several Palestinian nationalist groups, not Islamicists sharing the worldview of al-Qaeda. Activism by Iraq's main Shiite Islamicist opposition group, al-Dawa, was a major factor precipitating the war -- stirred by Iran's Islamic revolution, its endeavors included the attempted assassination of Iraqi Foreign Minister Tariq Aziz.)
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http://www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB82/When the U.S. Senate passed economic sanctions on Iraq in 1988 for using poison gas against the Kurds, U.S. ambassador April Glaspie reported that the U.S. construction company Bechtel planned to employ "non-U.S. suppliers of technology and continue to do business in Iraq," according to a CONFIDENTIAL State Department cable. In April 2003, Bechtel landed the largest U.S. Agency for International Development contract to date for infrastructure repair work in Iraq, with an initial payment of $34.6 million and long-term value of up to $680 million.
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http://www.gwu.edu/~nsarchiv/special/iraq/index.htmpeace