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.
I agree. You don't hear about Dubai residents rioting and doing any terror attacks.
One of the best ways to handle the Islamic "bloc" is to play one country against the other. Dubai is one of the allies. Qatar is another. And Kuwait is one more.
... But as the article notes appropriately, those who attacked us on 9/11 and the money that supported them passed through the UAE; the hijacker who piloted American Airlines flight 175 into the south tower of the World Trade Center was a UAE citizen. What would you have said if, on September 12, 2001, I told you that five years later Bin Laden would still be free, nuclear terrorism would be a top concern, and a panel of political appointees would approve the takeover of our port operations by a UAE company?As a sidenote, 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 for over $1 billion. Before he became Treasury Secretary, John Snow was Chairman and CEO of CSX.
The chairman of DP World is Sultan Ahmed Bin Sulayem. Since this man is about to play a role in protecting our borders from nuclear terrorism and other threats, it's probably worth getting to know him a bit. Here's the link to an interview in which he was asked to rate the corporate threats he faces on a scale of 1-10. His response, in descending order of importance:
- U.S. dollar decline
- Oil shocks
- Stagflation
- Over regulation
- Pandemics
- Terrorism
- Proliferation of weapons of mass destruction
- China
- Climate change
- Natural catastrophes
So the head of a corporation that's about to control the ports of New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia spends his day worrying about currency volatility, oil, stagflation and over-regulation. Terrorism and WMD's rate as only slightly more threatening than that menace we know as "climate change."
How's that for alignment of priorities?
http://www.blogger.com/comment.g?blogID=11246674&postID=113973532275057989
Even without the security threats, I disagree with the foreign sale of resources like our ports.
We must have industry. We must be self-sufficient.
Not calling for total isolationism, just not handing over the keys/cashbox to someone else.
Putting an Arab company in charge of port security; what are they thinking?
Dubai, 24 January 2006: - Global ports operator DP World today welcomed news that one of its senior executives, Dave Sanborn, has been nominated by US President George W. Bush to serve as Maritime Administrator a key transportation appointment reporting directly to Norman Mineta the Secretary of Transportation and Cabinet Member.The White House has issued a statement from Washington DC announcing the nomination. The confirmation process will begin in February. ...
Mr Sanborn, a graduate of The United States Merchant Maritime Academy, joined DP World in 2005. He previously held senior roles with shipping lines CMA-CGM (Americas), APL Ltd and Sea-Land and has been based, besides the US, in Brazil, Europe, Hong Kong and Dubai during his career. He has also served in the US Naval Reserve.
http://www.dpiterminals.com/fullnews.asp?NewsID=39
Dubai, Hong Kong, Jacksonville, FL, 9 December 2004 - Dubai Ports International ("DPI"), one of the world's leading port operators, announces that it has signed a definitive agreement with CSX Corporation (NYSE: CSX) to acquire the international terminal business conducted by CSX World Terminals ("the Company") and other related interests for a cash consideration of US$1.15 billion, subject to customary adjustments.CSX World Terminals is a leading international container terminal developer and operator with operations in Asia , Europe , Australia and Latin America . The Company's container terminal portfolio currently consists of interests in 9 terminals with 24 berths and combined future capacity of 14.6 million teus. All of the terminals are operated by the Company.
Key existing port operations include CT3 and CT8 in Hong Kong , Tianjin and Yantai in China and operations in Australia , Germany , Dominican Republic and Venezuela . In addition, CSX World Terminals has interests in logistics businesses in Hong Kong and China, notably ATL the market leading logistics operator based at Kwai Chung.
As well as an existing portfolio of significant scale and global reach, the Company has a strong pipeline of development projects. In particular, CSX World Terminals has a 25% interest in, and will be the operator of, Pusan Newport, a 9 berth facility with capacity of 5.5 million teus that is currently under development and is expected to commence operations in 2006.
LOL
RUN what? Yea, "unionized Americans" will take care of it! (like GM and Ford?)
Too FReeeePeeee!
And proscription drugs;
and CFR;
and No child left behind,
and not vetoing anything;
and giving up social security reform.
""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"
Yup, the CFR is real trustworthy. /major sarcasm
They also continue to hand out student and other visas to Middle Easterners like candy, especially from Saudia Arabia. Apparently some in our government still haven't learned.
That is a crime. I emailed the Prez and other Pubs crying how insane this is in a time of Muslim terror. It reminds me of Panama and the Chinese interests there.
For Immediate Release
Office of the Press Secretary
January 17, 2006Personnel Announcement
President George W. Bush today announced his intention to nominate ten individuals, appoint four individuals and designate one individual to serve in his Administration. He also recess appointed two individuals: ...
The President intends to nominate David C. Sanborn, of Virginia, to be Administrator of the Maritime Administration of the Department of Transportation. Mr. Sanborn currently serves as Director of Operations for Europe and Latin America at DP World. Prior to this, he served as Senior Vice President for North America Service Delivery at CMA-CGM (America) LLC. Mr. Sanborn also served as Vice President for Network-Operations for American President Lines, Pte. Ltd. Earlier in his career, he served as Director for Operations for Sea-Land Service, Inc. Mr. Sanborn is a retired Lieutenant Junior Grade for the United States Naval Reserve. He received his bachelor's degree from the United States Merchant Marine Academy.
http://www.whitehouse.gov/news/releases/2006/01/20060117-4.html
NOMINATIONS IN COMMITTEE (CIVILIAN)
This document identifies civilian nominations submitted by the President to the Senate for confirmation during the current congress and that are currently undergoing committee consideration. The nominations are listed by committee and in reverse chronological order based on the referral date. ...
In the Committee on Commerce, Science, and Transportation ...
Jan 18, 06 PN1164 Department of Transportation David C. Sanborn, of Virginia, to be Administrator of the Maritime Administration.
http://www.senate.gov/pagelayout/legislative/one_item_and_teasers/nom_cmtec.htm
Geez, might as well put the arabs in charge of our Airports. Is that next? How about Border Points of entry? Blackbird.
I'm shocked...SHOCKED!
(Get a room, you two!)
"Dubai is one of the allies."
Yes, and Russia was one of our allies in WWII!!! Then, we discovered that they were really our enemy.
World Net Daily has something on top of their site today about the Council of Foreign Relations.
The CFR's definitely not secret, but gosh forbid folks even mention it - why who wants to be thrown into the Maha Hush Limbaugh's Kook Bin - He has done a good job along with the rest of them at bullying conservatives into being quiet when anyone dare discuss these things. But as he says "someone's got some splainin to do".
****
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=48852
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"2. Does this in anyway change the Security Operations of the ports involved? If so how? "
If muslims were contracted and in charge of baggage and freight at several of our most busy airports, would that change security operations enough to give you to pause?
"Last month, the White House appointed a senior DP World executive, David C. Sanborn of Virginia, to be the 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.newsday.com/business/investing/wire/sns-ap-ports-security,0,3540656.story?coll=sns-ap-investing-headlines
Grrrr.
What the hell is Bush doing with our security?
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