"Other German firms sent 1,027 tons of precursors of mustard gas, sarin, tabun, and tear gasses in all. This work allowed Iraq to produce 150 tons of mustard agent and 60 tons of Tabun in 1983 and 1984 respectively, continuing throughout the decade. All told, 52% of Iraq's international chemical weapon equipment was of German origin. One of the contributions was a £14m chlorine plant known as "Falluja 2", built by Uhde Ltd, a UK subsidiary of a German company; the plant was given financial guarantees by the UK's Export Credits Guarantee Department despite official UK recognition of a "strong possibility" the plant would be used to make mustard gas."

https://en.wikipedia.org/wiki/Iraqi_chemical_weapons_program...

This looks implicating to me to a degree that there is no doubt in my mind that these governments supported the chemical weapons program of Iraq. I also read that there were actually German soldiers on the ground during the Iran-Iraq war that helped the Iraqis use the chemical weapons correctly, although there is no proof for that other than a few people who testified. I at least believe this is possible.

But yes, they wanted Iraq to destroy Iran, when they saw that they couldn't do it they wanted the weapons gone.