How Reagan armed Saddam with
chemical weapons — Part III
By Norm Dixon
According to William Blum, writing in the August 1998 issue of the Progressive, Sam Gejdenson, chairperson of a Congressional subcommittee investigating US exports to Iraq, disclosed that from 1985 until 1990 "the US government approved 771 licenses [only 39 were rejected] for the export to Iraq of $1.5 billion worth of biological agents and high-tech equipment with military application …
“The US spent virtually an entire decade making sure that Saddam Hussein had almost whatever he wanted… US export control policy was directed by US foreign policy as formulated by the State Department, and it was US foreign policy to assist the regime of Saddam Hussein.”
A 1994 US Senate report revealed that US companies were licenced by the commerce department to export a “witch’s brew” of biological and chemical materials, including bacillus anthracis (which causes anthrax) and clostridium botulinum (the source of botulism). The American Type Culture Collection made 70 shipments of the anthrax bug and other pathogenic agents.
The report also noted that US exports to Iraq included the precursors to chemical warfare agents, plans for chemical and biological warfare facilities and chemical warhead filling equipment. US firms supplied advanced and specialised computers, lasers, testing and analysing equipment. Among the better-known companies were Hewlett Packard, Unisys, Data General and Honeywell.
Billions of dollars worth of raw materials, machinery and equipment, missile technology and other “dual-use” items were also supplied by West German, French, Italian, British, Swiss and Austrian corporations, with the approval of their governments (German firms even sold Iraq entire factories capable of mass-producing poison gas). Much of this was purchased with funds freed by the US CCC credits.
The destination of much of this equipment was Saad 16, near Mosul in northern Iraq. Western intelligence agencies had long known that the sprawling complex was Iraq’s main ballistic missile development centre.
Blum reported that Washington was fully aware of the likely use of this material. In 1992, a US Senate committee learned that the commerce department had deleted references to military end-use from information it sent to Congress about 68 export licences, worth more than $1 billion.
In 1986, the US defence department’s deputy undersecretary for trade security, Stephen Bryen, had objected to the export of an advanced computer, similar to those used in the US missile program, to Saad 16 because “of the high likelihood of military end use”. The state and commerce departments approved the sale without conditions.
On March 16, 1988, Iraqi forces launched a poison gas attack on the Iraqi Kurdish village of Halabja, killing 5000 people. While that attack is today being touted by senior US officials as one of the main reasons why Hussein must now be “taken out”, at the time Washington’s response to the atrocity was much more relaxed. Just four months later, Washington stood by as the US giant Bechtel corporation won the contract to build a huge petrochemical plant that would give the Hussein regime the capacity to generate chemical weapons.
On September 8, 1988, the US Senate passed the Prevention of Genocide Act, which would have imposed sanctions on the Hussein regime. Immediately, the Reagan administration announced its opposition to the bill, calling it “premature”. The White House used its influence to stall the bill in the House of Representatives. When Congress did eventually pass the bill, the White House did not implement it.
Washington’s political, military and economic sweetheart deals with the Iraqi dictator came under even more stress when, in August 1989, FBI agents raided the Atlanta branch of the Rome-based Banca Nazionale del Lavoro (BNL) and uncovered massive fraud involving the CCC loan guarantee scheme and billions of dollars worth of unauthorised “off-the-books” loans to Iraq.
BNL Atlanta manager Chris Drougal had used the CCC program to underwrite programs that had nothing to do with agricultural exports. Using this covert set-up, Hussein’s regime tried to buy the most hard-to-get components for its nuclear weapons and missile programs on the black market.
Russ Baker, writing in the March/April 1993 Columbia Journalism Review, noted: “Elements of the US government almost certainly knew that Drougal was funnelling US-backed loans—into dual-use technology and outright military technology. The British government was fully aware of the operations of Matrix-Churchill, a British firm with an Ohio branch, which was not only at the centre of the Iraqi procurement network but was also funded by BNL Atlanta… It would be later alleged by bank executives that the Italian government, long a close US ally as well as BNL’s ultimate owner, had knowledge of BNL’s loan diversions.”
Yet, even the public outrage generated by the Halabja massacre and the widening BNL scandal did not cool Washington’s ardour towards Hussein’s Iraq.
On October 2, 1989, US President George Bush senior signed the top-secret National Security Decision 26, which declared: “Normal relations between the US and Iraq would serve our long-term interests and promote stability in both the Gulf and the Middle East. The US should propose economic and political incentives for Iraq to moderate its behaviour and increase our influence with Iraq… We should pursue, and seek to facilitate, opportunities for US firms to participate in the reconstruction of the Iraqi economy.”
As public and congressional pressure mounted on the US Agriculture Department to end Iraq’s access to CCC loan guarantees, Secretary of State James Baker—armed with NSD 26—personally insisted that agriculture secretary Clayton Yeutter drop his opposition to their continuation.
In November 1989, Bush senior approved $1 billion in loan guarantees for Iraq in 1990. In April 1990, more revelations about the BNL scandal had again pushed the department of agriculture to the verge of halting Iraq’s CCC loan guarantees. On May 18, national security adviser Scowcroft personally intervened to ensure the delivery of the first $500 million tranche of the CCC subsidy for 1990.
According to Frantz and Waas’ February 23, 1992, LA Times article, in July 1990 “officials at the National Security Council and the State Department were pushing to deliver the second installment of the $1 billion in loan guarantees, despite the looming crisis in the region and evidence that Iraq had used the aid illegally to help finance a secret arms procurement network to obtain technology for its nuclear weapons and ballistic-missile program”.
From July 18 to August 1, 1990, Bush senior’s administration approved $4.8 million in advanced technology sales to Iraq. The end-users included Saad 16 and the Iraqi ministry of industry and military industrialisation. On August 1, $695,000 worth of advanced data transmission devices were approved.
“Only on August 2, 1990, did the agriculture department officially suspend the [CCC loan] guarantees to Iraq—the same day that Hussein’s tanks and troops swept into Kuwait”, noted Frantz and Waas.
The News International
Oh dear me, Uncle Sam has been a very very bad boy. First he used Iraq and then abused Iraq.
So why should we now listne to Uncle Sam and believe he’s doing a rightious work in Iraq?