Dubai threat to hit back (UAE Threatens Against Boeing and US Bases Support)

The Hill.com ^ | March 9, 2006 | Roxana Tiron

[prairiebreeze]

Dubai is threatening retaliation against American strategic and commercial interests if Washington blocks its $6.8 billion takeover of operations at several U.S. ports.

As the House Appropriations Committee yesterday marked up legislation to kill Dubai Ports World’s acquisition of Britain’s Peninsular and Oriental Steam Navigation (P&O), the emirate let it be known that it is preparing to hit back hard if necessary.

A source close to the deal said members of Dubai’s royal family are furious at the hostility both Republicans and Democrats on Capitol Hill have shown toward the deal.

“They’re saying, ‘All we’ve done for you guys, all our purchases, we’ll stop it, we’ll just yank it,’” the source said.

Retaliation from the emirate could come against lucrative deals with aircraft maker Boeing and by curtailing the docking of hundreds of American ships, including U.S. Navy ships, each year at its port in the United Arab Emirates (UAE), the source added.

It is not clear how much of Dubai’s behind-the-scenes anger would be followed up by action, but Boeing has been made aware of the threat and is already reportedly lobbying to save the ports deal.

The Emirates Group airline will decide later this year whether it will buy Boeing’s new 787 Dreamliner or its competitor, Airbus A350. The airline last fall placed an order worth $9.7 billion for 42 Boeing 777 aircraft, making Dubai Boeing’s largest 777 customer.

Dubai in mid-February also established the Dubai Aerospace Enterprise, a $15 billion investment to create a company that will lease planes, develop airports and make aircraft parts to tap into growing demand for air travel in the Middle East and Asia.

The family-ruled sheikhdom may buy as many as 50 wide-body aircraft from Boeing and Airbus during the next four years, according to Aerospace Enterprise officials.

The UAE military also bought Boeing’s Apache helicopters. Meanwhile, Boeing has been in talks with the emirates to try to sell its AWACS planes.

An industry official with knowledge of Boeing’s contracts with Dubai said that the company has been involved in the emirate and that it would take a lot “to knock” those relationships.

“Nothing about the [ports] controversy diminishes our commitment to the region,” said John Dern, Boeing’s corporate spokesman. He added that at this point the company has no indication that there is or will be an impact on the company.

Any repercussion to Boeing could put House Speaker Dennis Hastert (R-Ill.) in a delicate position. Boeing’s decision to move its headquarters to Chicago has been seen as calculated to facilitate a close relationship with Hastert. He is against the ports deal, and his office did not return calls by press time.

Several businesses have expressed concern that the controversy over the $6.8 billion ports deal could damage trade with the UAE. Dubai is one of the seven emirates. The United States and the UAE are meeting next week for a fourth round of talks to sign a free-trade agreement. The American Business Group of Abu Dhabi, which has no affiliation with the U.S. government, said that Arabs may hesitate to invest into the United States, according to a report by Reuters.

A Republican trade lobbyist said that because the ports deal is a national-security issue blocking it would not be in violation of World Trade Agreement rules.

“In terms of them retaliating legally against the U.S. … I don’t think there are many options there,” the lobbyist said.

But when it comes to the emirates’ cooperation in the war on terrorism and in intelligence gathering, there is concern that some help may be pulled.

“If we reject the company in terms of doing the [ports] work, they are going to lose a lot of face. In the Arab culture, losing face is a big deal,” a former government official said. “We risk losing that help. It is not an empty threat.”

Dubai is a critical logistics hub for the U.S. Navy and a popular relaxation destination for troops fighting in the Middle East. On many occasions since the ports story erupted, the Pentagon has stressed the importance of the U.S-UAE relationship.

Last year, the U.S. Navy docked 590 supply vessels in Dubai, plus 56 warships, Gordon England, deputy secretary of defense, said in a Senate hearing last month. About 77,000 military personnel went on leave in the UAE last year, he added.

During the hearing, he warned about the implications of a negative decision on the ports deal: “So obviously it would have some effect on us, and I’d not care to quantify that, because I don’t have the facts to quantify it. It would certainly have an effect on us.”

Although owned by the Dubai government, the company at the heart of this controversy, Dubai Ports World, is trying to distance itself from any kinds of threats, said a lobbyist closely tracking the deal.

Another lobbyist monitoring the controversy said K Street still believes there will be a compromise that allows the Dubai deal to go through while meeting congressional security concerns, even though a bill aimed at that result, put forward by House Homeland Security Committee Chairman Peter King (R-N.Y.), was widely repudiated amongst lawmakers Tuesday.

Senate leaders have indicated that they would wait to take action until the new 45-day Committee on Foreign Investment in the United States (CFIUS) review is completed.

Meanwhile, in London, DP World cleared the last hurdle for its take over of P&O. The Court of Appeal in London refused Miami-based Eller & Co., which opposed the deal, permission to appeal against clearances for the legal and financial measures necessary to implement the takeover.

P&O said it expects to file the requisite court orders, making the takeover terms binding on DP World, according to the Financial Times.

Elana Schor contributed to this report.

[onyx]

Ponder this for a while.

BURNING ALLIES and OURSELVES

http://www.freerepublic.com/focus/f-news/1593651/posts

[samantha]

Here goes... Iris Weinshall is Mrs Chuck Schumer. She was appointed Sept 2000 to be The Commissioner of the NY City DOT. she was so useless/incompetent and cared more about clean restrooms on the Ferry's than Safety that the entire operation was a mess. In October of 2003 there was a horrible accident where 11 people died nd dozens were maimed. Many People were jailed and/or fired and even though Iris was cited by the US Coast Guard Investigation for running such a sloppy Organization that this incident happened she never lost her job. She is still there, and her name and Sen Schumer's are never associated. Mayor Bloomberg's Press Person used to work for Chuckie. Need I go on? She is protected........Sickening is it not?

[lawdog]

So your point is what?.. I couldn't possibly know ??? Jack left town and that left what? I am not trying to convert you or anyone else to be in "lock step" with me.

This site is about is the sharing of news, information and opinion by grass root conservatives that believe in the Constitution...not THEM vs. US... or has the Free Republic degenerated into a virtual Animal Farm ?

[Do not dub me shapka broham]

Ferrous Cranus is utterly impervious to reason, persuasion and new ideas, and when engaged in battle he will not yield an inch in his position regardless of its hopelessness. Though his thrusts are decisively repulsed, his arguments crushed in every detail and his defenses demolished beyond repair he will remount the same attack again and again with only the slightest variation in tactics.

Sometimes out of pure frustration Philosopher will try to explain to him the failed logistics of his situation, or Therapist will attempt to penetrate the psychological origins of his obduracy, but, ever unfathomable, Ferrous Cranus cannot be moved.

Look familiar?

[Dolphy]

That's what it all boils down to for you folks, isn't it? No principle matters other than "winning".

Right, the mass hysteria we have seen out of the Senate and House on this issue is all about principles.

[Junior_G]

Well, if you don't....WIN, that is, I guess you're just reduced to sniping from the sidelines, eh EV?

Like you on the ports issue, I suppose. 62-2.

[Howlin]

The only difference would be that you and all the other Republicans currently defending it would be on our side opposing it.

No kidding?

Can you link me to ALL your posts trashing the China-LA deal?

[A Citizen Reporter]

I thought I remembered you. You've been here before, with a different name, haven't you?

[BigSkyFreeper]

I saw it. Those who were against the Dubai deal and for the Patriot Act smiled the hardest at the Patriot Act Reauthorization signing. They were falling all over themselves jockeying for position behind president Bush.

[A Citizen Reporter]

You want to call this over, Junior? I don't.

[TigersEye]

Sickening but not surprising. Schumer is one of the most despicable Senators there is. I had no idea you would dig up that much info to respond with. Thank you! : )

[lawdog]

No it wasn't baseless and while some posts here are hysterical...mine wer not.

[BigSkyFreeper]

Can you link me to ALL your posts trashing the China-LA deal?

Maybe even the Saudi-NY deal.

[Howlin]

I'm simply saying that, if you don't mind, I'll put more credibility into people who have actually WORKED in the ports and know how they work and in people who have actually BEEN to Dubai.

Don't be offended; I'm funny that way -- I like the facts.

[Junior_G]

Where was all the ruckus when Saudi Arabia invested in ports in New York at the graces of Schumer?

I don't know. Frankly, I think Schumer's opposition to the deal is pure political opportunism and I wouldn't trust him on issues of national security farther than I could throw him.

[Howlin]

Look familiar?

Yeah, it does; it looks like something I saw people posting in the eighth grade.

[lawdog]

Now that is over the top..LOL!!!!!!!!!!!!

[samantha]

If the Dems had won Al Qaeda would be knocking down more of our buildings by the gross by now.

[Do not dub me shapka broham]

http://www.freerepublic.com/~thescourgeofyazid/

[TigersEye]

Familiar? It perfectly describes you and your ilk. You have been dishing it out for hundreds of posts and you get back two or three just like it and start whining like a little girl with a skinned knee.