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It was an agreement between (former Iraqi president) Saddam (Hussein) and the shah of Iran (ousted in 1979) and not between Iraq and Iran.
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On the Algiers accord document — reported in Agence France-Presse staff (December 26, 2007) "Iran insists on border deal with Iraq", Agence France-Presse.

 

Jalal Talabani

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I despised Saddam Hussein, because he attacked Iran when my hostages were being held. It was President Reagan who established diplomatic relations with Saddam Hussein after I left office.

 

Saddam Hussein

 

I heard the voice of your revolution... As Shah of Iran as well as an Iranian citizen, I cannot but approve your revolution... Let all of us work together to establish real democracy in Iran ... I make a commitment to be with you and your revolution against corruption and injustice in Iran.

 

Muhammad Reza Pahlavi

 

When I wrote it [Star Wars Episode III: Revenge of the Sith], Iraq didn't exist… We were just funding Saddam Hussein and giving him weapons of mass destruction. We didn't think of him as an enemy at that time. We were going after Iran and using him as our surrogate, just as we were doing in Vietnam… The parallels between what we did in Vietnam and what we're doing in Iraq now are unbelievable…

 

George Lucas

 

The images of Saddam Hussein endlessly repeated on our screens before the war (Saddam firing a rifle into the air) made him into some kind of Iraqi Charlton Heston — the president not only of Iraq, but also of the Iraqi Rifle Association. The true interest of these images, however, is that they remind us how the ideological struggle is fought out not only at the level of arguments but also at the level of images: which image will hegemonize a field, and function as the paradigmatic embodiment of an idea, a regime, a problem.

 

Saddam Hussein

 

Most often, our messing around and meddling in the affairs of other countries have unintended consequences. Sometimes just over in those countries that we mess with. We might support one faction, and it doesn't work, and it's used against us. But there's the blowback effect, that the CIA talks about, that it comes back to haunt us later on. For instance, a good example of this is what happened in 1953 when our government overthrew the Mossadegh government and we installed the Shah, in Iran. And for 25 years we had an authoritarian friend over there, and the people hated him, they finally overthrew him, and they've resented us ever since. That had a lot to do with the taking of the hostages in 1979, and for us to ignore that is to ignore history... Also we've antagonized the Iranians by supporting Saddam Hussein, encouraging him to invade Iran. Why wouldn't they be angry at us? But the on again off again thing is what bothers me the most. First we're an ally with Osama bin Laden, then he's our archenemy. Our CIA set up the madrasah schools, and paid money, to train radical Islamists, in Saudi Arabia, to fight communism... But now they've turned on us... Muslims and Arabs have long memories, Americans, unfortunately, have very short memories, and they don't remember our foreign policy that may have antagonized... The founders were absolutely right: stay out of the internal affairs of foreign nations, mind our own business, bring our troops home, and have a strong defense. I think our defense is weaker now than ever.

 

Ron Paul