Posted on 02/17/2006 7:51:42 AM PST by presidio9
Two U.S. Democratic senators said on Friday they would introduce legislation aimed at blocking Dubai Ports World from buying a company that operates several U.S. shipping ports because of security concerns.
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Robert Menendez of New Jersey and Hillary Clinton of New York said they would offer a measure to ban companies owned or controlled by foreign governments from acquiring U.S. port operations.
"We wouldn't turn the border patrol or the customs service over to a foreign government, and we can't afford to turn our ports over to one either," Menendez said in a statement.
P&O, the company Dubai Ports World plans to buy for $6.8 billion, is already foreign-owned but the concern is that the purchaser is backed by the United Arab Emirates government.
The UAE company would gain control over the management of major U.S. ports in New York and New Jersey, Baltimore, Philadelphia, New Orleans and Miami, sparking national security concerns.
"I will be working with Senator Menendez to introduce legislation that will prohibit the sale of ports to foreign governments," Clinton said in a statement.
Officials with the United Arab Emirates Embassy in Washington could not be immediately reached for comment.
The Committee on Foreign Investment in the United States, a U.S. inter-agency panel that reviews security implications of foreign takeovers of strategic assets, has already reviewed the transaction and did not object.
Despite that review, some Republicans and Democrats in the U.S. Congress urged the Bush administration to conduct a more rigorous review. They expressed fears that the UAE was used as a conduit for parts used for nuclear proliferation and that the local banking system had been abused by financiers with possible links to terrorist organizations.
U.S. officials have said the UAE has been a solid and cooperative partner in the fight against terrorism, and have praised the UAE for steps to protect its booming financial sector against abuse by terrorism financiers.
Money for the September 11 attacks was wired through the UAE's banking system, according to U.S. officials. Two of the September 11 hijackers were UAE citizens.
U.S. seaports handle 2 billion tons of freight each year but only about 5 percent of containers entering the United States are examined on arrival.
Similar concerns were raised when a China state-controlled oil company tried to acquire the U.S. oil company Unocal. After pressure from American lawmakers, the foreign company eventually dropped out of the bidding.
Good point.
Same here!... but STUPIDITY deserves to be treated this way. It scares the hell out of me, to think that someone on the Republican side can be so incredibly dumb!... even if this company is run by the "Pope" himself... The security of OUR ports, should be in U.S. hands. PERIOD!
yeah. this is a bad deal. Having Hillary and Schumer come to the apparent rescue of American Port security is scary enough, let alone having this Company take over operations, no matter how much oversight (read: our tax dollars) is given.
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