For Whom the Bell Tolls:
Top Ten Ways the US Enabled Saddam Hussein
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Qasim undertook land reform and founded a new section of Baghdad, in the northeast, which he called Revolution Township, where rural Shiites congregated as they came to the capital seeking work as day laborers (it is now Sadr City, where a majority of Baghdadis live). The US power elite of the time wrongly perceived Qasim as a dangerous radical who coddled the Communists.
1) The first time the US enabled Saddam Hussein came in 1959. In that year, a young Saddam, from the boondock town of Tikrit but living with an uncle in Baghdad, tried to assassinate Qasim. He failed and was wounded in the leg. Saddam had, like many in his generation, joined the Baath Party, which combined socialism, Arab nationalism, and the aspiration for a one-party state.
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2) After the failed coup attempt, Saddam fled to Cairo, where he attended law school in between bar brawls, and where it is alleged that he retained his CIA connections there, being put on a stipend by the agency via the Egyptian government. He frequently visited US operatives at the Indiana Cafe. Getting him back on his feet in Cairo was the second episode of US aid to Saddam.
3) In February of 1963 the military wing of the Baath Party, which had infiltrated the officer corps and military academy, made a coup against Qasim, whom they killed. There is evidence from Middle Eastern sources, including interviews conducted at the time by historian Hanna Batatu, that the CIA cooperated in this coup and gave the Baathists lists of Iraqi Communists (who were covert, having infiltrated the government or firms). Roger Morris, a former National Security Council staffer of the 1960s, alleged that the US played a significant role in this Baath coup and that it was mostly funded "with American money.". Morris's allegation was confirmed to me by an eyewitness with intimate knowledge of the situation, who said that that the CIA station chief in Baghdad gave support to the Baathists in their coup. One other interviewee, who served as a CIA operative in Baghdad in 1964, denied to me the agency's involvement. But he was at the time junior and he was not an eyewitness to the events of 1963, and may not have been told the straight scoop by his colleagues. Note that some high Baathists appear to have been unaware of the CIA involvement, as well. In the murky world of tradecraft, a lot of people, even on the same team, keep each other in the dark. UPI quotes another, or perhaps the same, official, saying that the coup came as a surprise to Langley. In my view, unlikely.
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5) The second Baath regime in Iraq disappointed the Nixon and Ford administrations by reaching out to the tiny remnants of the Communist Party and by developing good relations with the Soviet Union. In response, Nixon supported the Shah's Iran in its attempts to use the Iraqi Kurds to stir up trouble for the Baath Party, of which Saddam Hussein was a behind the scenes leader. As supporting the Kurdish struggle became increasingly expensive, Mohammad Reza Shah Pahlevi of Iran decided to abandon the Kurds. He made a deal with the Iraqis at Algiers in 1975, and Saddam immediately ordered an invasion of Iraqi Kurdistan. The US acquiesced in this betrayal of the Kurds, and made no effort to help them monetarily. Kissinger maintained that the whole operation had been the shah's, and the shah suddenly terminated it, leaving the US with no alternative but to acquiesce. But that is not entirely plausible. The operation was supported by the CIA, and the US didn't have to act only through an Iranian surrogate. Kissinger no doubt feared he couldn't get Congress to fund help to the Kurds during the beginnings of the Vietnam syndrome. In any case, the 1975 US about-face helped Saddam consolidate control over northern Iraq.
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http://www.juancole.com/2006/12/for-whom-bell-tolls-top-ten-ways-us.html