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Arab Co., White House Had Secret Agreement
AP ^ | 2/22/06

Posted on 02/22/2006 6:19:30 PM PST by iPod Shuffle

Arab Co., White House Had Secret Agreement

Feb 22 9:03 PM US/Eastern

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By TED BRIDIS

Associated Press Writer

WASHINGTON

1d08c5bfc6d0@news.ap.org The Bush administration secretly required a company in the United Arab Emirates to cooperate with future U.S. investigations before approving its takeover of operations at six American ports, according to documents obtained by The Associated Press. It chose not to impose other, routine restrictions.

As part of the $6.8 billion purchase, state-owned Dubai Ports World agreed to reveal records on demand about "foreign operational direction" of its business at U.S. ports, the documents said. Those records broadly include details about the design, maintenance or operation of ports and equipment.

The administration did not require Dubai Ports to keep copies of business records on U.S. soil, where they would be subject to court orders. It also did not require the company to designate an American citizen to accommodate U.S. government requests. Outside legal experts said such obligations are routinely attached to U.S. approvals of foreign sales in other industries.

"They're not lax but they're not draconian," said James Lewis, a former U.S. official who worked on such agreements. If officials had predicted the firestorm of criticism over the deal, Lewis said, "they might have made them sound harder."

The conditions involving the sale of London-based Peninsular and Oriental Steam Navigation Co. were detailed in U.S. documents marked "confidential." Such records are regularly guarded as trade secrets, and it is highly unusual for them to be made public.

The concessions _ described previously by the Homeland Security Department as unprecedented among maritime companies _ reflect the close relationship between the United States and the United Arab Emirates.

The revelations about the negotiated conditions came as the White House acknowledged President Bush was unaware of the pending sale until the deal had already been approved by his administration.

Bush on Tuesday brushed aside objections by leaders in the Senate and House. He pledged to veto any bill Congress might approve to block the agreement, but some lawmakers said they still were determined to capsize it.

Dubai Port's top American executive, chief operating officer Edward H. Bilkey, said the company will do whatever the Bush administration asks to enhance shipping security and ensure the sale goes through. Bilkey said Wednesday he will work in Washington to persuade skeptical lawmakers they should endorse the deal; Senate oversight hearings already are scheduled.

"We're disappointed," Bikley told the AP in an interview. "We're going to do our best to persuade them that they jumped the gun. The UAE is a very solid friend, as President Bush has said."

Under the deal, the government asked Dubai Ports to operate American seaports with existing U.S. managers "to the extent possible." It promised to take "all reasonable steps" to assist the Homeland Security Department, and it pledged to continue participating in security programs to stop smuggling and detect illegal shipments of nuclear materials.

The administration required Dubai Ports to designate an executive to handle requests from the U.S. government, but it did not specify this person's citizenship.

It said Dubai Ports must retain paperwork "in the normal course of business" but did not specify a time period or require corporate records to be housed in the United States. Outside experts familiar with such agreements said such provisions are routine in other cases.


TOPICS: Breaking News; News/Current Events
KEYWORDS: bush; nationalsecurity; ports; uae
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To: BubbaTheRocketScientist
If "free trade" is the answer, why isn't anybody proposing "free trade" as the solution to the Iranian nuke problem?

You're silly.

281 posted on 02/22/2006 8:46:59 PM PST by Darkwolf377 (Dubai-u's fault--The Port Non-Issue is Hillary's Sistah Soulja moment)
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To: Protect the Bill of Rights

--- 6. This entire deal is not extrodinary, not new or unusual, has been known since November, but MSM has not reported on it until now. (A timing issue?) ---

Yes. The timing is not surprising - this has totally swept away the 'Saddam-caught-on-tape-discussing WMD' issue.


282 posted on 02/22/2006 8:47:18 PM PST by rfp1234 (I've had it up to my keyster with these leaks!!! - - - Ronald Reagan)
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To: MillerCreek
Congressman Pete King, NY
283 posted on 02/22/2006 8:48:23 PM PST by hole_n_one
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To: hole_n_one
Is there a clear distinction between the terms review and investigation?

It's toward the bottom. A paragraph above the address at the bottom.

The Exon-Florio statute established a 30-day review following receipt of a notification. For those transactions for which an extended 45-day review (or "investigation") is completed, a report must be provided to the President, who must by law announce the final decision within 15 days. In total, the process can not exceed 90 days. The statute requires the President to inform Congress of his determination of whether or not to take action under section 721.

284 posted on 02/22/2006 8:48:39 PM PST by DJ MacWoW (If you think you know what's coming next....You don't know Jack.)
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To: MillerCreek
unless incentivized and to a degree subsidized by the federal government, American business cannot compete with this Dubai group due to American costs, taxes and regulations

True, to a certain extent, but not for the reasons most frequently stated. Tax and regulatory competition can't be meaningfully compared because DP World is a state-run corporation. What does it mean for the Dubai government to tax itself?

Further, the Dubai government has other interests in subsidizing this transaction. They're using the acquisition to help them jump-start Sharia-compliant securities trading in their financial markets, using instruments compliant with Islamic Law. IMHO, this in itself is a big enough reason to can the transaction. Should we be helping them expand the reach of Islamic Law?
285 posted on 02/22/2006 8:49:20 PM PST by BubbaTheRocketScientist
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To: Do not dub me shapka broham

Not sarcasm. Anybody who has participated in the GWOT knows we have Muslim allies.


286 posted on 02/22/2006 8:49:48 PM PST by Cannoneer No. 4 (Our enemies act on ecstatic revelations from their god. We act on the advice of lawyers.)
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To: Darkwolf377
You're silly.

I assume that means you can't provide a reasonable defense of using "free trade" to make friends in Dubai or Beijing, but not Tehran?
287 posted on 02/22/2006 8:51:15 PM PST by BubbaTheRocketScientist
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To: AmishDude

WEll, I did earlier, too, given that this Republican Senator King was on FOX News earlier today saying that the "investigation" constituted the Cabinet asking Intelligence if they had anything or not on the company and "that was the extent of it" according to this fellow.

And then the user there posted the actual language from the regulation and it brought into discussion the issue of "investigation" being required, AND...

even earlier here I'd made reference to the statement by Rice as to her opinion about the deal which someone reminded me included her words that the arrangement (had been) "fully vetted" prior to approval.

You have to read backwards about fifty or maybe seventy comments but it's there and that's the "thread logic" of the words "investigation" and "vetted(vetting)" and requirements and such.


288 posted on 02/22/2006 8:51:31 PM PST by MillerCreek
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To: mdittmar

And what exactly is wrong with the U.S. having a close relationship with this country?


289 posted on 02/22/2006 8:55:04 PM PST by plain talk
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To: MillerCreek

Thanks!


290 posted on 02/22/2006 8:55:42 PM PST by Fruitbat
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To: AmishDude

There's a pack of lies and liars in this deal, which stinks more today than it did yesterday or the day before.


291 posted on 02/22/2006 8:57:06 PM PST by DoNotDivide (Romans 12:21 Be not overcome of evil, but overcome evil with good.)
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To: DJ MacWoW
I gotcha now.

How do we know that these additional/extended reviews (or "investigation") did not take place?

I'm pretty sure I read that the President did notify Congress (with little fanfare) of his acceptance and approval of the sale.

292 posted on 02/22/2006 8:57:21 PM PST by hole_n_one
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To: MillerCreek

A British company can, why not an American?


293 posted on 02/22/2006 8:59:01 PM PST by Shermy
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To: AmishDude; hole_n_one
Never mind, DJ, I'll go with his.

Still mad? hole_n_one and I are both correct. The one page at Treasury has a LOT of info in a small space.

294 posted on 02/22/2006 9:00:03 PM PST by DJ MacWoW (If you think you know what's coming next....You don't know Jack.)
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To: pierrem15
"The real issue is how we could allow any foreign company to control our ports after 9/11?"

EXACTLY! I agree completely with what you write. I haven't yet used the "smell test" expression but I do recognize why others do, and I understand that response.

I also agree completely that a terrorist tactic is to "hide in plain site" -- in reference to your U.K. "Islamonazis" reference (I'd also include others) -- but the issue of most cocern to ME is that point you made in conclusion... and that is that this "company" (not a company, but a government, O.K. on that correction from someone earlier) is a state owned organization and, in effect, this will place that state (UAE) in access to classified, natioanl security concerns, issues, and provide them with opportunities.

I ALSO agree with the general point that this is a huge political blunder for Bush. AND his Cabinet. It diminishes the credibility of the whole of them in the eyes of many and is just a huge political blunder. Bush could have, at least, eased the issue forward to some degree through certain opportunities, made some attempt to include Congress (I'm trusting that he did not but I do recognize the opportunity to exploit this for political gain by some, especially Hillary and perhaps Shumar)...

The political damage from this Port Deal as it is today is huge.

295 posted on 02/22/2006 9:00:10 PM PST by MillerCreek
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To: Howlin

Howlin: "Yes, isn't it?"

Yes, Howlin, Portgate is stinking more and more every day.

Lies, liars and traitors abounding. Is there going to be a coverup in here too?


296 posted on 02/22/2006 9:01:58 PM PST by DoNotDivide (Romans 12:21 Be not overcome of evil, but overcome evil with good.)
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To: plain talk
And what exactly is wrong with the U.S. having a close relationship with this country?

I won't go there,my comment was from a political standpoint,GW screwed the pooch on this deal.

297 posted on 02/22/2006 9:02:27 PM PST by mdittmar (May God watch over those who serve,and have served, to keep us free.)
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To: DoNotDivide
This whole freaking thing stinks of lies, deceit, corruption and treason.

I don't see any evidence of that. I think what this episode demonstrates is the degree of ignorance throughout our country about who does what in ports and multi-national corporation ownership - including myself. I think we all need an education first off about exactly what this Arab country will be allowed to do and not do as a result of this deal. The truth is starting to emerge slowly. The reporting and government statements on this has been awfully shallow with a lot of people shooting from the hip without knowing what they are talking about.

298 posted on 02/22/2006 9:02:37 PM PST by plain talk
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To: DoNotDivide
Yes, Howlin, Portgate is stinking more and more every day.

Yoohoo! The truth and facts are coming out now.

You're going to look even sillier than you do now.

299 posted on 02/22/2006 9:03:10 PM PST by Howlin ("Quick, he's bleeding! Is there a <strike>doctor</strike> reporter in the house?")
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To: hole_n_one
Bush didn't even know about the sale until the other day when it was already done.
300 posted on 02/22/2006 9:04:05 PM PST by DoNotDivide (Romans 12:21 Be not overcome of evil, but overcome evil with good.)
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