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.
We appear to belong to the same club...minus the blues music. :-)
The State government is outta control there, and it is my birth place.
And FR has it's own ENEMIES WITHIN, who hate the president ( they always HAVE !) and push their favorite fringe parties.
These people who came out against this are dumb as rocks. There is no other explanation.
You're absolutely correct! But, yet again, the overly emotional and uneducated among us, refuse to look at the facts and just wail.
The abject stupidity, shown here these last weeks, is beyond shocking; not to mention depressing.
I don't think I seen you with your blood pressure this high in a while?....:-)
Could have been Beethoven or Bach just as easily.
SMACK!
Bach, for me. :-)
My blood pressure is just fine...what you see is my utter contempt for abject stupidity and my disgust for fools. But, yes, I haven't been this put off, in a rather long time.
Bach doesn't get rid of my fury like Beethoven though. Sometimes I just the Well Tempered Clavier or the Violin Sonatas and Partitas on an just marvel though.
I have to admit, initially I was rather stunned at the viciousness shown here on this subject....the absoluteness of those who refused to study the subject. I thought the left had the market cornered on knee-jerk emotional reaction/opinion. Not so, eh? I will never forget this chapter in FR history nor those who so eagerly jumped onto the SheBeast and Schumer's bandwagon in an attempt to destroy this president.
I guess it was just their bad luck that the American people woke up to the downside of unrestricted globalization right in the middle of their business venture.
Do you have a reading comprehension problem? Or are you being deliberately obtuse?
Where did you get the idea "they" were going to get control of our ports? Oh wait, are you getting all of your news from CNN or MSNBC? Is that where you came up with this idea?
Do you ever do any research on your own or do you simply parrot words you think you hear? Would you mind telling me exactly which ports DPW was going to begin controlling? Please tell me you didn't really think our ports were going to be controlled by DPW.
Oh wait, I think I'm beginning to understand you.
Now I understand! You thought you'd found a website where you could hate Arabs and now you're surprised to find out quite a few of us realize we can have allies in the ME.
What's with the use of butt buddies to describe an important ally in the WOT? Care to explain your use of that particular term?
Hmmm, I'm beginning to think a zot might be an appropriate experience for you. You appear to have issues...
From your posting history:
| Catholic official faces sex-abuse accusation |
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| Posted by Thetaxman to jecIIny On Religion 03/09/2006 9:32:24 PM CST · 10 of 16 |
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Why is it that about every third article on this board concerning the Catholic Church has to do with sex abuse?
I'm beginning to smell ozone.
DPW WOULD NEVER HAVE CONTROL OF OUR PORTS !
I'd rather deal with 'dirty sheets' than with bigots. The only thing you've won is the opportunity to show your ignorance. I must say, you're doing an excellent job.
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