The west was cool with Iran's nuclear ambitions when the Puppet Shah was in power.
A little history lesson, hope I am accurate, the Iranian revolution occurred in 1979. Iran shed its western skin and got rid of the Shah. Immediately the US set out to make friends with enemies of Iran and one of them was Iraq.
I have no clue what happened to Iran's nuclear plan's yet one could easily assume that the data was used to begin the program they have today.
Yes when the US utilities wanted to push nuclear on the US they used Iran and the Shah as a poster boy.
I have been aware of this fact for quite some time thus all of this "news" seems rather irrelevant and one sided yet hasnt it always been this way?
Here is the wiki entry which I highly recommend:
Iran - wiki
and here is a very revealing snippet from the side caption showing saddam shaking hands with rumsfeld...
Donald Rumsfeld meets Saddam Hussein on 19 December - 20 December 1983. Rumsfeld visited again on 24 March 1984, the day the UN reported that Iraq had used mustard gas and tabun nerve agent against Iranian troops. The NY Times reported from Baghdad on 29 March 1984, that "American diplomats pronounce themselves satisfied with Iraq and the U.S., and suggest that normal diplomatic ties have been established in all but name."}
Bottom line here is if Iraq had WMD's then the west sold them to him in hopes he would use them on Iran.
Good luck and good night.