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To: Txsleuth
... when Sec. Chertoff was asked about the Dubai deal, he was VERY closed mouthed and reinterated over and over how it was classified..and he couldn't talk about it...

Well then, time to move on. If the administreation says it's classified, and germane to national security, well, what's with all the questioning?

BTW, good page with lots of links on news regarding this sale: http://oriental_steam_navigation_co.newstrove.com/

Note too that other countries, notably Australia, need to approve the sale, as it affect ownership rights of container ports there, as well.

A company at the Port of Miami has sued to block the takeover of shipping operations there by a state-owned business in the United Arab Emirates. It is the first American courtroom effort to capsize a $6.8 billion sale already embroiled in a national debate over security risks at six major U.S. ports affected by the deal. The Miami company, a subsidiary of Eller & Co. Inc., currently is a business partner with London-based Peninsular and Oriental Steam Navigation Co., which Dubai Ports World purchased last week. ...

The Miami subsidiary, Continental Stevedoring & Terminals Inc., said the sale to Dubai was prohibited under its partnership agreement with the British firm and "may endanger the national security of the United States." It asked a judge to block the takeover and said it does not believe the company, Florida or the U.S. government can ensure Dubai Ports World's compliance with American security rules.

http://www.newsobserver.com/110/story/402067.html


568 posted on 02/19/2006 9:25:38 AM PST by Cboldt
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To: Cboldt

I'll admit I haven't given this issue a lot of thought yet. While I can see the side of those that argue against this purchase from a security standpoint, I was having a difficult time undestanding on what grounds Congress could getinvolved (I may be missing something, but don't see how they fit in, except if they pass a law that no foreign companies can operate US ports).

This angle makes more sense to me - it appears it could be a breach of contract. I suspect there is non-assignment language in their agreement that specifically spells out that the contract cannot be assigned without their express written approval and/or that it cannot be assigned to certain governments or companies under certain governments. Based on the last sentence below, there is also probably language in it wrt strict security regulations with which they don't feel they comply and thus they would be in breach of contract.

"The Miami company, a subsidiary of Eller & Co. Inc., currently is a business partner with London-based Peninsular and Oriental Steam Navigation Co., which Dubai Ports World purchased last week.

In a lawsuit in Florida circuit court, the Miami subsidiary said that under the sale it will become an "involuntary partner" with Dubai's government and it may seek more than $10 million in damages.

The Miami subsidiary, Continental Stevedoring & Terminals Inc., said the sale to Dubai was prohibited under its partnership agreement with the British firm and "may endanger the national security of the United States." It asked a judge to block the takeover and said it does not believe the company, Florida or the U.S. government can ensure Dubai Ports World's compliance with American security rules."


591 posted on 02/19/2006 9:51:50 AM PST by Seattle Conservative (God bless and protect our troops and their CIC.)
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