The classic article on this from 1993 is by Russ W. Baker and appeared in Columbia Journalism Review. It does start out:
"Much of what Saddam received from the West was not arms per se, but so-called dual-use technology -- ultra sophisticated computers, armored ambulances, helicopters, chemicals, and the like, with potential civilian uses as well as military applications. We've learned by now that a vast network of companies, based in the U.S. and abroad, eagerly fed the Iraqi war machine right up until August 1990, when Saddam invaded Kuwait."
But it goes on to state:
"Eventually, it would turn out that elements of the U.S. government almost certainly knew that Drogoul was funneling U.S.-backed loans -- intended for the purchase of agricultural products, machinery, trucks, and other U.S. goods -- into dual-use technology and outright military technology. And that 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 center of the Iraqi procurement network but was also funded by BNL Atlanta.
<snip>
"Meanwhile, The Village Voice published a major investigation by free-lancer Murray Waas in its December 18, 1990, issue. Under the headline GULFGATE: HOW THE U.S. SECRETLY ARMED IRAQ, Waas pulled together a massive amount of information, ranging from senior White House officials' accounts that George Bush was a behind-the-scenes advocate of a pro-Iraq tilt, to an accounting of U.S. trade with Iraq that had a potential military application. 'That American troops could be killed or maimed because of a covert decision to arm Iraq," Waas wrote, "is the most serious consequence of a U.S. foreign policy formulated and executed in secret, without the advice and consent of the American public.' "
http://archives.cjr.org/year/93/2/iraqgate.aspThere's a lot of even weirder stuff associated with this story that involves Wackenhut and a shady character named Ihsan Barbouti. See, for example,
http://www.fiu.edu/~mizrachs/octopus.html (and then Google those names for more, if you're intrigued.)