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In summary, the U.S. basically strengthened Iraq, although they knew what was going on inside Iraq.Yes, but Iraq was their ally at that time...
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This fits nicely into the "big picture", of the U.S. always watching out for their interests (or what they think is their interest), above all other considerations. I must think about the "Plan Cóndor" or "Operación Cóndor", of which you, as a Brazilian, have surely heard.North America had (has) the "Eagle of Freedom" and the South American had the "Condor of Dictatorships".