Posted on 02/22/2006 1:39:33 PM PST by Nasty McPhilthy
Okay, first let’s get a couple of facts straight.
First there is NO American corporation capable of operating our ports. The London based company that was doing this job, Britain’s Peninsular and Oriental Steam Navigation Co. was one of a very few capable of doing it.
Second, the President has no authority to prevent the sale of British P & O to the Dubai State owned corporation, Dubai Ports World. This is a private business deal. However, the President and his administration do have the power to terminate the contracts with this private corporation to operate our ports.
Sometimes good policy is bad politics and when that is true politics will always win out. In my opinion, the President should delay approval of the deal and call for Congressional hearings and recommendations for a solution to this dilemma.
Given that choice, then the question remains, who’s going to run them? Port operations is a highly specialized endeavor and American industry cannot afford to wait for a new company to come up to speed. The same argument holds for Senator “Microphone Moth” Schumer’s suggestion of using the TSA solution (true to his nickname, he was the first to pop up in front of a microphone to protest this sale). How long will it take for a federal organization to hire and train the necessary employees and get the whole operation up to speed?
I don’t know about you, but I don’t want another federal bureaucracy operating facilities which ought to be run by private companies. Haven’t we learned anything from the USPS, Amtrak, and FEMA? Senator Chucky’s dream deal might be a socialist state, but it’s not mine. If you liked FEMA’s handling of the Katrina disaster, just wait till you see “Hurricane Harbor.”
Do we hire Haliburton to perform this function? They are probably the only American Corporation capable of taking up this function, but would require some time before they had that expertise. Besides, I can hear the Liberals howling now…“Cheney’s rich buddies…”…“Bush’s oil field friends enriching themselves…”…“A plot by Rove to get Haliburton another lucrative contract…” I can hardly wait.
By the same token Mr. President:
How can you be SO tone deaf? Did you really not expect this kind of reaction? Are you truly so out of touch with public opinion? Have you no clue what the American people feel about the Middle East?
Tuesday you stated:
“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 . . . British company. I am trying to conduct foreign policy now by saying to the people of the world, ‘We’ll treat you fairly.’”
The answer, Mr. President, is that they ARE different. September 11, 2001 changed ALL dynamics with respect to the Middle East. I am astounded that you of all people don’t understand this. The enemy we are fighting DOES have an Arab face.
If 9-11 changed the dynamics, the wars in Afghanistan and Iraq with the deaths of over 2200 American servicemen and women have cast those changes in concrete. For you not to understand that is a disturbing fact.
I am fully aware that you don’t pay attention to the public opinion polls in making your decisions, and I am in full agreement with that attitude. It worked well for President Reagan and it has, for the most part, worked well for you. Such a philosophy leads to stability in governmental policy compared, for example, to President Clinton’s “finger in the wind” policy. However, there is a difference between independence, which is good, and obtuseness which is destructive.
What are you thinking, Mr. President? After five years you are finally going to use your veto on this? After years of profligate spending bills, only now you are going to use your veto pen?
You need to consider the debt you owe to the Republican Party. I am aware that you have no further political aspirations, but you owe your fellow Republicans some consideration. This may be a business winner, but it is a political loser.
Please wake up. This is not a time for you to stick to your guns. You owe the American people some deference to their feelings on this issue. Even worse, you have provided your political opponents, and those of all Republicans, a ready made issue in this election year.
Mr. President, Lindsey Graham described you as “tone-deaf.” I would describe this decision as your being blind, deaf, and dumb.
Political correctness is preventing our security people from doing their jobs more efficiently by outlawing “profiling.” Now you are allowing your desire to demonstrate your equanimity toward Middle Eastern nations to affect our entire nation’s peace of mind and potentially our security.
I have been an ardent supporter of yours on most issues, but on this issue you are wrong. It is time for you to reconsider and relent. There is nothing in this entire imbroglio that will suffer from a reasonable delay to allow Congress to investigate it.
It would be better, in this case, for America to proceed with a consensus opinion rather that one made unilaterally by your administration.
As for you hyperventilating opponents:
Take a breath, please. Take time to consider what I have stated above, our alternatives in this case are very limited. There are currently no American alternatives to Dubai Ports World. It is easy to criticize the administration on this, but criticism is pointless without a viable alternative, so don’t just whine, offer a solution.
I already know the Microphone Moth’s solution, a new federal bureaucracy like the marginally functional TSA. Do we really want another bureaucratic boondoggle on our hands? I know I don’t.
I also know this, if I were on the Halliburton’s board of directors, I would get my lobbyists activated, and put a team of experts together and come up with a strong port operations proposal immediately.
Who ya gonna call? Port Busters!
"The dopey Washington insiders and apologists like Rush have all said the same thing, there are no American companies that can run a terminal, so how did the USA develop the Manhattan project in WWII?"
Short answer: "cost plus fee contract."
Port operators don't get those.
The problem is that American companies start off at a disadvantage in the global market for ANYTHING because we are (I believe) the only country crazy and stupid enough to tax a company based here on ALL of its income worldwide, instead of just its domestic income.
And don't forget the regulations!
The thought of foriegn ownership is somewhat less than palatable, isn’t it?
However, my only concern is security.
The regulations are the cherry on top of the sundae. The taxes alone ensure that US companies have a lower ROI.
"Impeach" on what grounds specifically - remember the Constitution states: "Treason, Bribery, or other high Crimes and Misdemeanors."
How exactly is Lockheed going to run 7 U.S. ports starting March 2nd?
Hubby is a train buff. He tells me stories and I roll my eyes at the idiot regs that ruined them. Then the Govt took over and discovered the regs meant operating at a loss so they dropped a lot of them. Was there ever a more frightening statement than "I'm from the government and I'm here to help." LOL
"The point is are there American companies that can operate such a venture."
And they declined to submit bids, because running port operations will not generate a sufficiently high ROI to justify the expenditure of money, given the tax and regulatory climate they operate in.
"BTW, on the other point I made, would you resign yourself to defeat? Unless you could get a cost plus fee contract, I think you would."
Developing unknown technology is done under cost plus fee contracts. That's because the level of risk makes it impractical to commit to a fixed fee, because guessing wrong equals bankruptcy.
CHECK AND MATE!!!!
BWAAA-HAAA-HAAA-HAAA!!!!!
You're right. It might be the only way out of this..
sw
I have read that Dubai (all the UAE, for that matter) don't recognize Israel. but don't have a link right now.
IIRC (and I may not in this case), DPW was putting in $200 mil (in cash or equity) and going to the markets (banks syndicates) for the rest. Of course, their (DPW's) balance sheet will be behind most of the borrowing, but no one makes a purchase of this size with cash.
At the end of the day, there will probably even be some unsecured debt issued (junk bonds).
I suspect the rationale for this kind of acquisition is economy of scale related (for the most part). DPW is already in the business and can use its existing system to cut costs. Also, there are plenty of assets that can be sold and leased-back (under a lease purchase arrangement). If I had to guess, I would say that this deal was put together by some London investment bankers...and then taken to DPW.
Joe Lieberman doesn't seem to have a problem with that.
Well, not sure about unions, but regulations and our tax system would apply to any company doing business in the US.
"Well, not sure about unions, but regulations and our tax system would apply to any company doing business in the US."
Except that foreign-based corporations only pay US taxes on their US revenues, while US-based corporations pay taxes on their worldwide revenue.
No need to guess - Citibank and Deutsche Bank put together the deal: http://portal.pohub.com/pls/pogprtl/docs/PAGE/POGROUP_PAGE_GROUP/NEW_POGROUP_WEBSITE/NEW_POGROUP_291105_EMBARGO_PAGE/RECOMMENDED%20CASH%20ACQUISITION%20OF%20P%26O.PDF
"First there is NO American corporation capable of operating our ports."
That statement sounds like the one for immigration. There are jobs Americans wont do.
This thing is becoming more troubling each day. Is it true that the president didn't know about the deal until recently? Yet he has staked everything on this deal going forward.
Unless this is psyops, this is crazy.
Well, to be honest, for the pay offered, there are indeed some jobs American citizens will not do.
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