The Iraq–Kuwait dispute also involved Iraqi claims to Kuwaiti territory. Iraq pressured both nations to forgive the debts, but they refused. Iraq's debts to Kuwait amounted to $14 billion. Most of its debt was owed to Saudi Arabia and Kuwait. When Iraqi President Saddam Hussein expelled Abu Nidal to Syria at the US's request in November 1983, the Reagan administration sent Donald Rumsfeld to meet Saddam as a special envoy and to cultivate ties.īy the time the ceasefire with Iran was signed in August 1988, Iraq was heavily debt-ridden and tensions within society were rising. With Iraq's newfound success in the war, and the Iranian rebuff of a peace offer in July, arms sales to Iraq reached a record spike in 1982. The United States remained officially neutral after Iraq's invasion of Iran in 1980, which became the Iran–Iraq War, although it provided resources, political support, and some "non-military" aircraft to Iraq.
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