It might have been as such until the war started, but then it changed:
"When the Iraq-Iran War broke out in September 1980 it was American policy to let the two nations fight it out. America had turned anti-Iran since the Iranian revolution and its hostage crisis. America had no love for Saddam in Iraq either, at the time he was part of the Soviet sphere of influence and backed terrorist attacks against the US's close ally, Israel.
This all changed when Iran started to make significant gains in the war. President Ronald Reagan saw disaster if Iran's revolutionary government overran Iraq and so Reagan created the National Security Decision Directive 114 on Nov. 26, 1983. This directive changed US policy from neutral observer to active supplier of military supplies, battle field intelligence, and most controversially, dual-use technology that allowed Saddam to create WMDs. Howard Teicher, who served on Reagan's National Security Council described in sworn statements how, "CIA Director Casey personally spearheaded the effort to ensure that Iraq had sufficient military weapons, ammunition and vehicles to avoid losing the Iran-Iraq war" http://www.famouspictures.org/mag/index.php?title=Donald_Rumsfeld_Shakes_Hands_With_Saddam_Hussein
Or lets have a look at some lines of Iran-Iraq war timeline:
"October, 1983. The Reagan Administration begins secretly allowing Jordan, Saudi Arabia, Kuwait, and Egypt to transfer United States weapons, including Howitzers, Huey helicopters, and bombs to Iraq. These shipments violated the Arms Export Control Act."
"November 1983. George Schultz, the Secretary of State, is given intelligence reports showing that Iraqi troops are daily using chemical weapons against the Iranians."
"December 20, 1983. Donald Rumsfeld , then a civilian and now Defense Secretary, meets with Saddam Hussein to assure him of US friendship and materials support."
http://www.iranchamber.com/history/articles/arming_iraq.php
