Through Matrix Churchill, intelligence agencies hoped to keep track of what arms Iraq was making or buying.
The company was unaware yesterday that Matrix Churchill had been seized.
Government officials declined to discuss the next steps in their investigation of Matrix Churchill.
Matrix Churchill's key officers in Britain, standing trial for running a front for arms sales to Iraq, were suddenly set free this week.
Matrix Churchill was a company that produced machine tools in Coventry, England.
The executives of the company, Matrix Churchill, were charged with violating the export restrictions.
The company, Matrix Churchill, was under Federal investigation because its operating capital had come from the Atlanta bank.
From 1987 to 1990, Matrix Churchill, which was owned by Iraq, served as the main channel for the acquisition of military technology.
But others argued successfully that stopping Matrix Churchill would mean losing a window on the Iraqi arms network.
In the months after the reports were written, Matrix Churchill continued to buy Western arms-building technology.