There were few if any reservations evident in the range of weapons which President Ronald Reagan, and his successor George W. H. Bush were willing to sell Saddam Hussein. Under the Arms Export Control Act of 1976, the foreign sale of munitions and other defense equipment and technology are controlled by the Department of State. During the 1980s, such items could not be sold or diverted to Communist states, nor to those on the U.S. list of terrorist-supporting countries. When Iraq came off that list in 1982, however, some $48 million of items such as data privacy devices, voice scramblers, communication and navigation equipment, electronic components, image intensifiers and pistols (to protect Saddam) were approved for sale during 1985-90.
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Through the mid and late 1980s, said Milhollin, the Pentagon, the CIA and the Office Naval Intelligence, among others, continued to warn the White House that Iraq's nuclear, chemical and biological weapons were maturing at a rapid pace, as was work on the ballistic missiles to deliver them. The warnings were falling on deaf ears: in October, 1989, 10 months before the Kuwait invasion, President George Bush signed NSD 26, updating NSDD 114, and again committing the U.S. to normal relations with Saddam Hussein's government.
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But these companies were not, per se, Saddam Hussein's main weapons suppliers: that designation should properly go to Ronald Reagan and George W.H. Bush, the signers, respectively, of NSDD 114 and NSD 26, both of which remain classified. As the primary recipients and ultimate "customers" of the alert memos from the CIA and the U.S. intelligence community, they were currently and fully aware of the use to which the equipment and technology were being put, and of the security policy implications of the process. And the instrument, the person, the envoy, who negotiated the process in the first instance, is the current U.S. Secretary of Defense, Donald Rumsfeld.
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http://www.rense.com/general35/rums.htm