Also, back then, Saddam Hussein was an effective leader who kept his people in control, and Iraq was one of U.S.'s staunchest allies, it would have been hard to imagine U.S. would be the invaders that would create the power vacuum for rebels launch a civil war.
"Well what happens if we get invaded?"
"Not going to happen while we're U.S.'s best buddies."
"What about a rebellion?"
"With Saddam Hussein? Impossible. Iraq is a stable country."
That's quite an exaggeration. Iraq and the United States didn't even have diplomatic relations from 1967 to 1983. The U.S. did help Iraq when it looked like it was going to lose the war it started with Iran, but it was mostly intelligence aid since Congress refused to lift the arms embargo against Iraq.
Mosul Dam wasn't completed till 1986, and 1983-1986 is the period of time where Mosul Dam was being constructed, and when U.S.-Iraq relations were at their most friendly.
"Well what happens if we get invaded?"
"Not going to happen while we're U.S.'s best buddies."
"What about a rebellion?"
"With Saddam Hussein? Impossible. Iraq is a stable country."