Posted on 02/21/2006 3:26:05 PM PST by bikepacker67
WASHINGTON (Reuters) - President George W. Bush rejected congressional pressure to step in and suspend an Arab company's takeover of operations at major U.S. seaports on Tuesday and vowed to veto any legislation to block the deal.
"After careful review by our government, I believe the transaction ought to go forward," Bush told reporters aboard Air Force One. If Congress passed a law to stop the deal, "I'll deal with it with a veto."
The port operations erupted as a major political headache for Bush, whose fellow Republicans on Capitol Hill joined Democrats in questioning the deal.
Senate Republican leader Bill Frist added his voice to Capitol Hill outcry against the decision allowing state-controlled Dubai Ports World of the United Arab Emirates to manage ports in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.
"If the administration cannot delay the process, I plan on introducing legislation to ensure that the deal is placed on hold until this decision gets a more thorough review," Frist, a Tennessean and potential 2008 presidential contender, said in a statement.
Frist's decision to join the fray was significant because as majority leader he sets the Senate's agenda. Other lawmakers from both parties said they already had legislation ready to go to block the decision by a Treasury-led interagency panel known as the Committee on Foreign Investment in the United States.
Along with state and local officials from the affected areas, the lawmakers were indignant about the deal's impact on the ports, considered vulnerable since the September 11 attacks. Dubai Ports World is on the verge of taking over Britain's P&O, which now manages the ports.
"It's hard to believe that this Administration would be so out of touch with the American people's national security concerns, that it would use its first ever veto to save this troubling Dubai ports deal," said New York Democratic Sen. Charles Schumer
Bush said he was trying to conduct a fair foreign policy.
"I want those who are questioning it to step up and explain why all of a sudden a Middle Eastern company is held to a different standard than a great British company," Bush said.
"I'm trying to conduct foreign policy now by saying to the people of the world 'we'll treat you fairly.'"
"And after careful scrutiny, we believe this deal is a legitimate deal that will not jeopardize the security of the country and at the same time sends that signal that we are willing to treat people fairly."
Schumer and Republican Rep. Peter King of New York vowed to try and block the deal legislatively as soon as Congress is back in town on Monday. King is chairman of the House of Representatives Homeland Security Committee.
A similar hail of criticism from American lawmakers last year drove off a bid by China's state-controlled CNOOC Ltd. for American oil company Unocal.
Officials from several Bush administration departments defended the Dubai Ports World decision.
Treasury spokesman Tony Fratto said all the administration members of the committee on foreign investment, including the Department of Homeland Security, agreed the transaction could proceed.
State Department spokesman Adam Ereli said a risk assessment by the U.S. intelligence community and decided there was no objection on national security grounds.
At the Justice Department, Attorney General Alberto Gonzales stressed the deal had only to do with the management of port operations -- not security.
At the Pentagon, Defence Secretary Donald Rumsfeld and Marine Corps Gen. Peter Pace defended the United Arab Emirates as a close ally of the United States.
P&O shareholders last week approved Dubai Ports World's $6.8 billion takeover, which would create the world's third-largest ports group. A British court is expected to give its final approval at a hearing scheduled for February 27.
A UAE government official said the security concerns were unfounded given his country's close ties with Washington and Dubai Ports' record as global operator. U.S. warships often call at the UAE's Jebel Ali port, run by Dubai Ports.
U.S. seaports handle 2 billion ton(ne)s of freight a year. Only about 5 percent of containers are examined on arrival.
Perhaps it also because there has been no refineries built in our country for about 30 years and we are not drilling enough oil for ourselves. So we need their oil. Sadly.
And, U.S military has access to ports and airports in the UAE for our war on terror.
Plus, this deal China made with Iran is a little troubling.
Maybe we need this so called ally more than we want.
Or, Bush is just nut's!
Wow, he is really losing me with this. Sitting out 2006 looks more and more likely.
Nope, perfect timing.
Your citing Saudi Arabia is, I think, not the best example. The fact that the Saudis have allowed us to establish military bases on their soil is fine and dandy. But remember that those bases are on Saudi soil, not U.S. soil. And it does not give the Saudis close proximity to critical U.S. facilities and defense functions as does this dubious plan to put the UAE in charge of the ports.
And what thanks did Israel get when they gave up Gaza to the Palestinians recently. If Bush really thinks generosity will change them, then he needs to review the history books.
And where is this trap going to be placed? Hopefully, not 20 minutes from me where one of the ports islocated.
Do you think that the hatred that the Muslim world harbors for the Christian world, particularly America, is something that can be bought off ? Do you think that 'material self interest' means squat to a suicide bomber ? Do you think that money means anything to religious fanatics ?
Do you know why al-Qaeda loved Afghanistan so much ? It wasn't just the Taliban government. It was because the sheer poverty and backwardness of the country was to them a paradise of rustic purity and virtue. They don't hate poverty. They hate wealth. Why do you think they tried twice to destroy the Twin Towers ? Because it was a symbol of America's wealth.
The British company was not owned by the British government. DP world is one hundred percent owned by the UAE government. That is a HUGE difference.
Didn't Carter "give away" the Panama Canal? Maybe George Bush just doesn't want to be outdone by Carter ;-)
Because a foreign-owned company -- ANY foreign-owned company -- just shouldn't be controlling our ports, ESPECIALLY ports that handle Army shipping!
[And what thanks did Israel get when they gave up Gaza to the Palestinians recently.]
Giving up Gaza and getting NOTHING in return is phenominally stupid.
[Because a foreign-owned company -- ANY foreign-owned company -- just shouldn't be controlling our ports, ESPECIALLY ports that handle Army shipping!]
In general, I support this notion.
...The ones which uphold the liberties of its citizens or move quickly in that direction we should reward...
Sometimes carrots ARE the right lever.
[This thing has been going on since Nov. What happened?]
If we're to depend on members of congress (or worse, journalists) to let us know what's really happening behind the scenes, we'll be waiting a long time.
I don't say this lightly, but I'm afraid that national security has become an issue that congress, the president, both major parties, and the news media have all relegated to spin as a top priority.
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