1) Why, in 1984, would Saddam Hussein want to assist the Provos. He had no particular quarrel with Britain at the time, AFAIK. I don't think he was buying British arms, as his armed forces were already committed to Soviet-bloc equpment, but financially he had important links to the West including Britain. The US was supporting him against Iran to some degree.
2) If this arrangement went through, wouldn't there be some knock-on effects before 1991?