Posted on 02/17/2006 5:46:27 PM PST by Dane
UPDATE 3-US Democrats plan bill to block Dubai port deal Fri Feb 17, 2006 5:57 PM EST
(Recasts paragraph 1, adds UAE government, Rice, analyst)
By Jeremy Pelofsky and Caroline Drees
WASHINGTON, Feb 17 (Reuters) - Two U.S. senators, citing national security concerns, said on Friday they would try to block a company backed by the United Arab Emirates government from acquiring a British firm that runs several U.S. ports.
Sens. Robert Menendez of New Jersey and Hillary Clinton of New York, both Democrats, said they would offer legislation to ban companies owned or controlled by foreign governments from acquiring U.S. port operations, targeting the $6.8 billion purchase of P&O (PO.L: Quote, Profile, Research) by Dubai Ports World.
"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. The Senate Banking Committee also plans to hold a hearing on the issue later this month.
P&O (PO.L: Quote, Profile, Research) is already owned by a foreign company, but is not state-owned, and the concern is that the purchaser is owned by the Dubai government, which is part of the UAE. The Bush administration considers Dubai and the UAE a solid ally in its campaign against terrorism.
The UAE company would control management of major ports in New York and New Jersey, Baltimore, Philadelphia, New Orleans and Miami.
U.S. seaports handle 2 billion tons of freight each year. Only about 5 percent of containers are examined on arrival.
It was unclear whether there was broad support for the new legislation. But objections in Congress to the deal could complicate ties between the United States and the UAE.
Secretary of State Condoleezza Rice said she supported the U.S. government decision to approve the deal and that the administration may need to better explain its reasons to Congress.
"There was a thorough review. It was decided that this could be done and done safely," she said in an interview with Middle East-based media.
Rice plans to meet with some Gulf foreign ministers next week in Abu Dhabi, where the subject could come up.
"I understand the debate in the U.S. on the issue of P&O and Dubai Ports but we would like to emphasize that we have been a strong ally of the U.S. in combating terrorism and will remain so," UAE Foreign Minister Sheikh Abdullah bin Zayed al-Nahayan told Reuters.
A Dubai Ports World spokesman said ports the company managed met international security standards and that it had received all the U.S. regulatory approvals for the deal.
"All Dubai Ports World ports are ISPS (International Ship and Port Facility Security) certified as are the P&O ports in the U.S.," the spokesman told Reuters in Dubai.
The Committee on Foreign Investment in the United States (CFIUS), a U.S. inter-agency panel that reviews security implications of foreign takeovers of strategic assets, reviewed the transaction and did not object.
But both Republicans and Democrats in Congress urged the administration to conduct a more rigorous review. Some 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.
The Senate Banking Committee plans to hold a hearing the week of Feb. 27 to examine concerns about the P&O sale and the U.S. government review process, a panel spokesman said.
"This does not create a train wreck," said Jon Alterman, head of the Middle East program at the Center for Strategic and International Studies in Washington. "But it's not helpful for a huge number of things we do with the UAE, everything from cooperation on money laundering and trafficking to counterterrorism to defense issues and on and on."
U.S. officials have praised the UAE for steps to protect its booming financial sector against abuse by terrorism financiers. Money for the Sept. 11 attacks was wired through the UAE's banking system, according to U.S. officials. Two of the Sept. 11 hijackers were UAE citizens. (Additional reporting by Saul Hudson in Washington, Dayan Candappa and Firouz Sedarat in Dubai)
The above is the lie being parroted by schumer and hillary.
How can one company that operates one terminal of many(with a Danish partner, how's that for irony) in a port be in "control" of management in that whole port.
P & O Ports operates the New York City Passenger Ship Terminal and owns a 50 percent interest in the Port Newark Container Terminal, which is the third-largest cargo terminal on the Port Authority's property. The other half-interest is owned by a subsidiary of Maersk Line, which is based in Denmark
But some on FR will believe hillary(who helped pardon terrorists) and schumer.
BTW when is hillary and schumer going to criticize Tiger Woods for playing golf in the UAE and taking(according to some on FR) tainted money.
Let them do it.
Very clever of the Democrats. Pretend to grab the national security issue by seizing on this non-issue with much appeal to the uninformed.
The way I've been reading FR lately, Hillary will have sizeable support among Freepers for doing this. Fascinating to watch.
This is out and out racism; the UAE is a good and decent country and its not the role of the two racist Democratic senators from New York to intervene in this.
While I don't oppose the Democrats on this, the liberals do need to quit the C3P0-style "We're DOOMED! We SURRENDER!" act on the more serious national security issues.
Hitlary will NEVER, I say again, NEVER be able to get my vote.
Hillary doesn't have my support, but her bill sure does. This isn't a non-issue. Any amount of control of our ports by a muslim nation is a concern to me. I don't trust tribalism.
But not Chinese Gov't. control of the Panama Canal?
P & O did not "control" the East Coast Ports, they have control of specific terminals in these ports that they bought or built.
It might be a shock to some, but Boeing, Grumman and Lockheed are not majority American owned either.
It is always a shock when you get your butt blown up.
You control a terminal, you control access. And I'm against the Chinese onslaught. Sorta got a little jumpy as 911 I guess.
You know, I've been thinking of this and I believe it is a ploy to get money from that UAE company for the Liberal Coffers. What with Gore and Clinton over there and raising money, (certainly some of that must go in to democratic coffers), I can't help but think this is nothing more than a shake down of the UAE for campaign money.
It's like a mini Chinagate.
Speaking of the Chinese, didn't Slick Willy approve of the Chinese taking over or buying out a port in Long Beach or something to that effect? Anyone remember anything about that?
Now, Billary's got her chonies in a bunch about the New york port? I am certainly not for the UAE getting a foothold on our major ports or minor ones for that matter, but Billiary is sure hypocritical if that's what ole Slick did at Long Beach!!
Check it out and help me recall what that was all about. Thanks!
Santorum, Coburn, Peter King - also want this stopped.
momentum is building on this, it will be stopped.
Hillary is riding the national security issue. If she gets on the open border problem and the WOT she might pick up a few votes here and there. Pure opportunism in action.
UAE or any other Arab nation has no business running terminals at our ports period. If they do so it should be only under the constant noses of our security forces.
This is a good political move by the NY senators.
HAHAHAHAHAHAHAHAHAHAHAHA
I just cannot contain myself; what damn hubris!
Isn't it. Especially when they tell US we're not real, true conservatives unless we agree with them and their agenda.
I don't fault Democrats when they are right, only when they are wrong (which is 99.99% of the time). They are right on this. Offering up one measely bill won't a president make.
How can you be "right" when you have an ulterior motive?
You don't really think she gives one big crap about this, do you?
Let's not forget she and her husband practically GAVE this country to the Chinese for votes.
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