Well, not quite. I am not exactly equating Saddam with America. I doubt Saddam would "liberate" Iran but there is plenty of precedence that America deposed dictators then left the country to the inhabitants, may be too soon in case of Iraq. I am discussing the principle of it. I am pretty sure if instead of Saddam you had Mother Theresa and Bakhtiar had worked with her you'd still be against it.
So saddam never even for second thought about liberating Iran. His whole approach during the war suggests a defensive approach to pressure these IR heyvaanat to come to sense and back off of that sick goal to liberate iraqi people from anti-islamic baathis. What i am trying to say is, this has never been on the table. Saddam was neither able nor willing to liberate a country like Iran so he naturally started to look for some iranian force that could get rid of khomeini and set an end to all that sick things khomeini had started right after he came to power. Saddam basically would have loved to have Shah or someone like Bakhtiar back after just one year of khomeinism because he knew those guys atleast would let him and his country alone and wouldnt try to impose their islam on others.
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