Libertarian ping.To be added or removed from my ping list freepmail me or post a message here
Posted on 03/09/2006 9:02:17 AM PST by 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.
HINT: to all
Knock off the personal and petty attacks now!!
Carry on
Wow. I never knew that little ole me wielded this much power. But since you granted me such power, I feel a strange compunction to solicit some input for my next omnipotent act. Since the WOT is over, should I go for World Peace; or just fix world hunger? I know there are a lot of our European and Middle-Eastern brethren worried about Global Warming and Bird Flu. Geeze, it is hard to prioritize things with this adrenalin rush from power.
From another thread Rush was wrong President Bush did shake his worthless hand. Sorry,but I cannot stomach that jerk King.
I didn't say your posts were hysterical. I said the hype you based your view on was hysteria.
Schumer doesn't give a rip about national security, and he belongs to one state that got attacked on 9/11. His only interest is himself and the unions that support him. He didn't even support the 45-day review, because frankly, I believe he would have been made a fool, just like the people who sided with him on the Dubai deal. Facts are stubborn things to liberals like Schumer and neo-protectionists here on FR.
Since you know nothing about me how could I be offended ? Now "tiger" calling me the equivalent of the junior Senator from New York was very funny!
Really appreciate your noticing it so fast. /sarcasm
I don't take homework assignments from anybody around here. I was in complete opposition to it at the time. Weren't you?
I know it was just one of many reasons to hate Clinton, but I was definitely aware of it and disgusted by it; and I think it is highly likely that I vocalized that sentiment here.
Libertarian ping.To be added or removed from my ping list freepmail me or post a message here
Tiger your funny but not everyone who doesn't agree with you has an opinion based on "hysteria"..
I thank you. I really didn't think it sounded like something that the President would do. He is not as petty as the congress critters he has to work with.
Which is what makes me so very MAD. This President worked hard to elect these ingrates in their elecitons and to raise money for them.
I'll just put you down under the "I Didn't Say A Word About Any Of this Until Schumer Brought It Up" column.
I agree with that much.
You shouldn't be so obvious.
You seem to have the mistaken perception that I'm against the WOT.
LOL.
;-)
-good times, G.J.P. (Jr.)
Remember back in '98 when Peter King went on all the Sunday talk shows and said that 15 or 20 House Republicans wouldn't vote for impeachment.
That was my R congressman Peter King spouting Clinton push-poll propaganda.
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