This seems to dovetail in with another one of your translated documents.
"Afghani Taliban Consul Spoke of a Relationship Between Iraq and Bin Laden"
http://www.freerepublic.com/focus/f-news/1597459/posts
From that translation dated Sept 15, 2001 the following seems to have taken place just prior to Sept 11, 2001.
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1. That Osama Bin Laden and the Taliban in Afghanistan are in contact with Iraq and it that previously a group from Taliban and Osama Bin Laden group visited Iraq.
2. That America has proof that the government of Iraq and Osama Bin Laden group have shown cooperation to hit target within America.
3. That in case it is proven the involvement of Osama Bin Laden group and the Taliban in these destructive operations it is possible that American will conduct strikes in Iraq and Afghanistan.
4. That the Afghani Consul heard about the subject of Iraq relation with Osama Bin Laden group during his stay in Iran.
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I am not quite sure what to make of it with your newly translated document. Was Iraq preparing because they thought the USA thought they were involved, or because they knew they were involved?
Exactly.