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.
What protection do we provide them? Last I checked non. Docking Naval Ships at their port is not providing security.
Who is going to screw around and try to take over a country while our navy is there and our soldiers???
Apparently the UAE doesn't take threats very well either, because they just said the same thing to the US. Happy?
Savage lit a fire, threw gasoline on it and fanned the flames. He didn't bother with facts, educating his listeners or incorporating one iota of responsibility.
Which is why I don't waste my time with him.
I believe it well could have. But, by God, we've taught those A-rabs a lesson....(rolling eyes)
Oh yes, the comments from unions and from the media ABOUT the unions follow here:
{{{crickets}}}
"Actually, Reagan financed Saddam Insane during the Iran-Iraq war after the Iranian Hostage Crisis that Carter couldn't figure out how to resolve."
My MISTAKE. It was Reagan, not Bush Senior.
Thanks!
Correct. We help prop up that dictatorship because the alternatives are not very good at this point. Hopefully, things will change in the future.
We ALL make mistakes from time to time and I am no exception. :)
Yup.....yup.
I always wish there was a way you could INSERT a disclaimer in the post like "Yeah, somebody's already corrected me so YOU don't need to." :-)
You have no idea who you're talking to...."You people....
have been kicked out of the Republican party a long time ago" (?????) I am more anti-political than political.
If you want to amuse yourself with partisan conceits, go right ahead. But look objectively at where we are with ANY political issue, real or pseudo-, and tell me where allegiance to any party, cause or representative has gotten anyone. You have a pretty lofty notion of what partisan politics even CAN accomplish. You sound just like your counterparts on the Left, who think THEY are the ones holding their fingers in the dyke, to prevent the flood that will destroy us all. All I can do is sigh, and say
"You're funny...."
Since this has been discussed many times, I will repost Anitius Severinus Boethius comment on this subject:
Dubai: We will allow you to use our ports, intelligence networks and airfields to fight against terrorism."True Conservative": You are nothing but a bunch of terrorist arab muslim SOB's!!
Dubai: Er, ok. We will open up investment and provide first class service to your military and support personnel.
"True Conservative": You are nothing but a bunch of terrorist arab muslim SOB's!!
Dubai: Hmmmm. We will make major purchases of aircraft from Boeing and provide port facilities in case you need to take action against Iran.
"True Conservative": You are nothing but a bunch of terrorist arab muslim SOB's!!
Dubai: Ok, fine. You don't want us to control port management in your country. Great, we don't want it now. In fact, maybe we don't want to do business with you at all.
"True Conservative": What!?! Way to backstab us!! I told you they are nothing but a bunch of terrorist arab muslim SOB's, didn't I!!
Thanks to the both of you!
Good for you ..... I hope you'll take a few CA FReepers with you so he or his staff get an earful about the utter lowlife he is.
His voting record, his party affiliation, his ties to the unions, his press conferences, and news reports on all the above.
Again, I am not really concerned about the security issue.
Like I said, neither is he.
I am concerned about letting a country who refuses to acknowledge Israel to operate our ports.
Then you are worried about security issue. Make up your mind already.
If you think that 20 or 30 US Navy ships cruising the Persian Gulf, based out of the Port of Dubai, doesn't have a "security effect" that benefits Dubai visa vie Iran, you don't have a brain cell that understands strategery.
"You knee-jerk anti-arabists..... all that matters to you guys is that they are 'sand niggers' and your brain shuts off."
Anti Arabs my @$$. Never once have I used the terms here that you have used. Quit spewing you're xenophobic crap and learn a little about Islam will you?
http://www.nationalreview.com/comment/alexiev200602241620.asp
Drudge isn't even the new media. He provides no alternative to the old media. His website is nothing more than a personal website with a collection of links directed toward the old media, and one link (refdesk.com) directed toward his dad's website.
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