These mobile labs were apparently sold to Iraq in the late 80's. That was when U.S. policy was to support Iraq in the Iran-Iraq war. So I don't see why this is explosive news about Germany. But it does serve to corroborate what Powell and the U.S. government have been saying about the mobile labs in Iraq.
Yes, we did support him against Iran. But the difference is that once we discovered how evil he is, we abandoned him as an ally and tried to contain him and limit the damage he could do. Germany didn't.
And as far as us supporting him initially, people forget that there really aren't any "good guys" in power in that region. Our choices were very limited.