Starting in 1982 with Iranian success on the battlefield, the United States made its backing of Iraq more pronounced, normalizing relations with the government, supplying it with economic aid, counter-insurgency training, operational intelligence on the battlefield, and weapons.
President Ronald Reagan initiated a strategic opening to Iraq, signing National Security Decision Directive 4-82 and selecting Donald Rumsfeld as his emissary to Hussein, whom he visited in December 1983 and March 1984. According to U.S. ambassador Peter W. Galbraith, far from winning the conflict, "the Reagan administration was afraid Iraq might actually lose."
In 1982, Iraq was removed from a list of State Sponsors of Terrorism to ease the transfer of dual-use technology to that country. According to investigative journalist Alan Friedman, Secretary of State Alexander Haig was "upset at the fact that the decision had been made at the White House, even though the State Department was responsible for the list." "I was not consulted," Haig is said to have complained.
Howard Teicher served on the National Security Council as director of Political-Military Affairs. He accompanied Rumsfeld to Baghdad in 1983. According to his 1995 affidavit and separate interviews with former Reagan and Bush administration officials, the Central Intelligence Agency secretly directed armaments and hi-tech components to Iraq through false fronts and friendly third parties such as Jordan, Saudi Arabia, Egypt and Kuwait, and they quietly encouraged rogue arms dealers and other private military companies to do the same:
[T]he United States actively supported the Iraqi war effort by supplying the Iraqis with billions of dollars of credits, by providing U.S. military intelligence and advice to the Iraqis, and by closely monitoring third country arms sales to Iraq to make sure that Iraq had the military weaponry required. The United States also provided strategic operational advice to the Iraqis to better use their assets in combat... The CIA, including both CIA Director Casey and Deputy Director Gates, knew of, approved of, and assisted in the sale of non-U.S. origin military weapons, ammunition and vehicles to Iraq. My notes, memoranda and other documents in my NSC files show or tend to show that the CIA knew of, approved of, and assisted in the sale of non-U.S. origin military weapons, munitions and vehicles to Iraq.