You didn't tell the whole story:
During the
First Gulf War, it was revealed that German firms had assisted Iraq with modernizing its ballistic missile and chemical weapon programs, thanks in part to lax enforcement by
German customs, in violation of the
Missile Technology Control Regime protocols which West Germany had acceded to in 1987.
[20] These enhanced missiles brought Israeli cities into Iraqi targeting range for the first time, and the Iraqi weapons research program included factories and necessary supplies for the creation of weaponized
mustard and
nerve gas.
[21][22] Though not a belligerent in the Gulf War, Israeli cities were nevertheless bombarded by these upgraded Iraqi missiles.
[23][24] To compensate Israel for war-related damage and economic losses
[22][25] and keep German shipyards occupied with a high profile project in the post Cold War defense spending downturn,
[26][27] then
Chancellor of Germany Helmut Kohl approved an assistance package to German industry including the construction of two
Dolphin-class submarines.
[28][29]