The FAS links are good. One of them, [link|http://www.fas.org/nuke/intro/cw/produce.htm|here] says:
Drums of thiodiglycol, produced in the United States and illegally diverted from their intended recipients, were found by international inspectors after the Gulf War at Iraqi CW production sites.
[link|http://www.cbwinfo.com/Chemical/Precursors/p1.html|This] link lists some of the industrial uses of thiodiglycol. It's perfectly reasonable for the US to have shipped the material to Iraq for peaceful industrial purposes. (The link says 1 M pounds are produced in the US annually and the US no longer produces chemical weapons.) Obviously the people approving the export should have been more congnizant of its potential of being diverted for military uses, and in retrospect the export should have been forbidden.
Tangentially related to this topic is another interesting link on the FAS site [link|http://www.fas.org/irp/gulf/af/970211/970207_aadbc_001.html|here]. It seems to be a DOD cable from CENTAF (US Central Command Air Force) from September 1990 discussing the history of Iraq's unconventional weapons programs. It says they started work on chemical weapons in the 1960s.
2. \t (U) IRAQ'S CHEMICAL PROGRAM
A. \tIRAQ APPEARS TO HAVE INITIATED ITS CHEMICAL WEAPONS'
PROGRAM IN THE 1960'S. BY 1985, IRAQ WAS PRODUCING A NUMBER OF
CHEMICAL AGENTS, INCLUDING MUSTARD GAS AND TWO DIFFERENT TYPES OF
NERVE AGENTS. IT IS POSSIBLE THAT IRAQ HAS DEVELOPED A CHEMICAL
AGENT PRODUCTION CAPACITY OF 700 TONS PER YEAR. SOME OTHER
ESTIMATES HAVE THE PRODUCTION CAPACITY 20 TIMES LARGER.
B. \tTHE CHEMICAL AGENT USED MOST COMMONLY DURING THE IRAN-IRAQ
WAR WAS MUSTARD GAS. BY 1985, AT A SMALL PLANT IN SAMARRA, THE
IRAQIS WERE CAPABLE OF PRODUCING ABOUT 50 TONS OF MUSTARD GAS PER
YEAR. THOUGH ETHYLENE IS THE BASE ELEMENT IN THE PRODUCTION OF
MUSTARD GAS, IT IS THIODIGLYCOL THAT IS THE MOST COMMON PRECURSOR.
INITIALLY, IRAQ HAD TO RELY ON WESTERN EUROPE AND THE UNITED STATES
FOR THIS IMPORTANT PRECUSOR AGENT. HOWEVER, IRAQ NO LONGER RELIES -
ON IMPORTS OF THIODIGLYCOL, DUE TO SELF SUFFICIENCY. ABOUT ONE TON
OF THIODIGLYCOL MAKES ONE TON OF MUSTARD GAS. THE OTHER KEY
INGREDIENT, HYDROCHLORIC ACID, CAN BE OBTAINED ON THE OPEN
MARKET.
(Double-spaced to try to make it easier to read.)
FWIW.
Cheers,
Scott.