Just reposted on another thread, but it's good for this thread as well....
http://www.casi.org.uk/info/usdocs/usiraq80s90s.htmlU.S. Diplomatic and Commercial Relationships with Iraq, 1980 - 2 August 1990
Prepared by Nathaniel Hurd.
15 July 2000 (updated 12 December 2001 by Nathaniel Hurd and Glen Rangwala).
Before 1980
• Following the 1967 Arab-Israeli War Iraq severed diplomatic relations with the U.S. In late 1979 the State Department (SD) put Iraq on its list of States sponsoring groups categorized by the SD as "terrorist."<1>
1980
• The U.S. Defense Intelligence Agency (DIA) asserted in a report that Iraq has been ‘actively acquiring’ Chemical Weapons capacities since the mid-1970s.<2>
1982
• Despite intelligence reports that Iraq still sponsored groups on the SD's terrorist list, and "apparently without consulting Congress", the Reagan Administration removed Iraq from the State terrorism sponsorship list in 1982.<3> The removal made Iraq eligible for U.S. dual-use and military technology.<4>
1983
• A SD report concluded that Iraq continued to support groups on the SD’s terrorist list.<5>
• Iraq reportedly began using chemical weapons (CW) against Iranian troops in 1982, and significantly increased CW use in 1983. Reagan’s Secretary of State, George Shultz, said that reports of Iraq using CWs on Iranian military personnel "drifted in" at the year’s end.<6> A declassified CIA report, probably written in late 1987, notes Iraq's use of mustard gas in August 1983, giving further credence to the suggestion that the SD and/or National Security Council (NSC) was well aware of Iraq's use of CW at this time.<7>
• Analysts recognized that "civilian" helicopters can be weaponized in a matter of hours and selling a civilian kit can be a way of giving military aid under the guise of civilian assistance.<8> Shortly after removing Iraq from the terrorism sponsorship list, the Reagan administration approved the sale of 60 Hughes helicopters.<9> Later, and despite some objections from the National Security Council (NSC), the Secretaries of Commerce and State (George Baldridge and George Shultz) lobbied the NSC advisor into agreeing to the sale to Iraq of 10 Bell helicopters,<10> officially for crop spraying. See "1988" for note on Iraq using U.S. Helicopters to spray Kurds with chemical weapons.
• Later in the year the Reagan Administration secretly began to allow Jordan, Saudi Arabia, Kuwait and Egypt to transfer to Iraq U.S. howitzers, helicopters, bombs and other weapons.<11> Reagan personally asked Italy’s Prime Minister Guilio Andreotti to channel arms to Iraq.<12>
<more there> fully documented with backing footnotes