Yup. And they also sold nuclear technologies (or uranium, or both, I don't remember exactly) to Khadaffi at the end of the 70s. Let's mention however that by this time, Khadaffi and Hussein were not as poorly considered by the West, US included, as they are today. Hussein in particular was seen as an ally against the fundamentalists and especially against Iran.
That's no excuse, but this different context makes the whole thing a little less surprising.