Posted on 02/16/2006 1:40:18 PM PST by Stellar Dendrite
The Bush administration on Thursday rebuffed criticism about potential security risks of a $6.8 billion sale that gives a company in the United Arab Emirates control over significant operations at six major American ports.
Lawmakers asked the White House to reconsider its earlier approval of the deal.
The sale to state-owned Dubai Ports World was "rigorously reviewed" by a U.S. committee that considers security threats when foreign companies seek to buy or invest in American industry, National Security Council spokesman Frederick Jones said.
The Committee on Foreign Investment in the United States, run by the Treasury Department, reviewed an assessment from U.S. intelligence agencies. The committee's 12 members agreed unanimously the sale did not present any problems, the department said.
"We wanted to look at this one quite closely because it relates to ports," Stewart Baker, an assistant secretary in the Homeland Security Department, told The Associated Press. "It is important to focus on this partner as opposed to just what part of the world they come from. We came to the conclusion that the transaction should not be halted."
The unusual defense of the secretive committee, which reviews hundreds of such deals each year, came in response to criticism about the purchase of London-based Peninsular and Oriental Steam Navigation Co.
The world's fourth-largest ports company runs commercial operations at shipping terminals in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.
Four senators and three House members asked the administration Thursday to reconsider its approval. The lawmakers contended the UAE is not consistent in its support of U.S. terrorism-fighting efforts.
"The potential threat to our country is not imagined, it is real," Rep. Mark Foley, R-Fla., said in a House speech.
The Homeland Security Department said it was legally impossible under the committee's rules to reconsider its approval without evidence DP World gave false information or withheld vital details from U.S. officials. The 30-day window for the committee to voice objections has ended.
DP World said it had received all regulatory approvals.
"We intend to maintain and, where appropriate, enhance current security arrangements," the company said in a statement. "It is very much business as usual for the P&O terminals" in the United States.
In Dubai, the UAE's foreign minister described his country as an important U.S. ally but declined to respond directly to the concerns expressed in Washington.
"We have worked very closely with the United States on a number of issues relating to the combat of terrorism, prior to and post Sept. 11," Sheik Abdullah Bin Zayed al-Nahyan told The Associated Press.
U.S. lawmakers said the UAE was an important transfer point for shipments of smuggled nuclear components sent to Iran, North Korea and Libya by a Pakistani scientist, Abdul Qadeer Khan. They also said the UAE was one of only three countries to recognize the now-toppled Taliban as Afghanistan's legitimate government.
The State Department describes the UAE as a vital partner in the fight against terrorism. Dubai's own ports have participated since last year in U.S. efforts to detect illegal shipments of nuclear materials.
Rep. Vito Fossella, R-N.Y., urged congressional hearings on the deal.
"At a time when America is leading the world in the war on terrorism and spending billions of dollars to secure our homeland, we cannot cede control of strategic assets to foreign nations with spotty records on terrorism," Fossella said.
Critics also have cited the UAE's history as an operational and financial base for the hijackers who carried out the attacks of Sept. 11, 2001.
"Outsourcing the operations of our largest ports to a country with a dubious record on terrorism is a homeland security and commerce accident waiting to happen," said Sen. Charles Schumer, D-N.Y. "The administration needs to take another look at this deal."
Separately, the Port Authority of New York and New Jersey said Thursday it will conduct its own review of the deal and urged the government to defend its decision.
In a letter to the Treasury Department, Port Authority chairman Anthony Coscia said the independent review by his agency was necessary "to protect its interests."
The lawmakers pressing the White House to reconsider included Sens. Schumer, Tom Coburn, R-Okla., Frank Lautenberg, D-N.J., and Chris Dodd, D-Conn., and Reps. Foley, Fossella and Chris Shays, R-Conn.
And Bush's last vestiges of conservatism go right out the window...
I guess you would rather state an opinion before you had any information.
"The Committee on Foreign Investment in the United States, run by the Treasury Department, reviewed an assessment from U.S. intelligence agencies. The committee's 12 members agreed unanimously the sale did not present any problems, the department said."
Obviously this secret committee on foreign investment in the US is made up of arab muslims. Since no red blooded freedom lovin American in his right mind could possibly conceive this sale as not a potential threat to our national security at a time when we are at war with some arab muslims.
beam me up scotty
Even on immigration? How about government spending? The expanded size of government? Do you agree with the continued shrinking of our military personnal?
lol I guess Dane has the day off...
"I wonder how much that cost the Arabs per committee person?"
Dang just when I figured the committe must be made up of arabs you come along with this multi million dollar bribe scheme. yessiree that'll git er done.
JMO, the screeching ones on this thtread are either textbook knee jerkers or chuckie schumer sycophants.
"Does this pose a national security risk? I think that's pushing the envelope," said Stephen E. Flynn, who studies maritime security at the New York-based Council on Foreign Relations. "It's not impossible to imagine one could develop an internal conspiracy, but I'd have to assign it a very low probability."Changing management over the U.S. ports "doesn't offer al-Qaida any opportunities it doesn't have now," said James Lewis, who worked with the U.S. committee at the State and Commerce departments. "It's in Dubai's interest to make sure this runs well. There is strong economic incentive to be sure these worries never materialize."
Flynn and others said even under foreign control, U.S. ports will continue to be run by unionized American employees. "You're not going have a bunch of UAE citizens working the docks," Flynn said. "They're longshoremen, vested in high-paying jobs. Most of them are Archie Bunker-kind of Americans."
Peninsular and Oriental and DP World set approval by the U.S. security committee as a condition for the sale. In regulatory papers, the companies said either the committee must agree not to formally investigate the purchase or Bush must not move to block the sale for national security purposes.
Oh Brother!
Doesn't matter if the Feds run the Port Security or not. I have to disagree with you on this.
NO Foreign country should be running OUR ports in ANY capacity.
The international zone at Jebel Ali is one of the best run ports one could hope to find. These people know how to run a port.
What a disaster this would be to allow our ports to be run by foreign interests. For once I will have to agree with Schumer's comments.
The only reason Schumer, Laut, and the RINOs are upset about this is because the government isn't running the ports.
I am upset for a completely different reason. They don't care WHO it was sold to, they just care that it was sold to a private company.
1. What does "commercial Operations" mean? Is is import/export facilities, warehouses, etc.?
2. Does this in anyway change the Security Operations of the ports involved? If so how?
Thanks if anyone can provide how this process would work.
I would take issue with the representation that there's no way to stop this unless it can be shown that DP World gave false evidence or withheld vital details. Information on the Committee's website states quite clearly that the President retains the authority to make the decision.
http://www.ustreas.gov/offices/international-affairs/exon-florio/
Granted, I gave it a rather cursory reading, and there may be other statutory issues. But, my take is that this Committee is an advisory body who investigates and recommends, but does not issue the actual decision. The President does.
Grover Norquist Jr? Did that Arabist bag man have anything to do with it? He should have been barred from DC back on 9/12/01.
February 12, 2006 - By TED BRIDISFollow the money.Last month, the White House appointed a senior DP World executive, David Sanborn of Virginia, as new administrator of the Maritime Administration of the Transportation Department. Sanborn worked as DP World's director of operations for Europe and Latin America.
http://www.sweetness-light.com/archive/arabs-to-control-six-us-ports/
"the U.S. Committee on Foreign Investment in the United States (CFIUS) meets in secret and is headed by Treasury Secretary John Snow. In 2004, DP World purchased part of the American company CSX [CSX World Terminals, the international terminals business owned by CSX] for over $1 billion. Before he became Treasury Secretary, John Snow was Chairman and CEO of CSX.
LMFAO!!!!!!!!
"Anytime Schumer, Lautenberg and RINOs are opposed to something, I am suspicious."
So Tom Coburn is a RINO now?
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