Fact Sheet: The CFIUS Process And The DP World Transaction

White House ^ | February 22, 2006 | Office of the Press Secretary

[Cboldt]

For Immediate Release
Office of the Press Secretary
February 22, 2006

Fact Sheet: The United States-UAE Bilateral Relationship

"But I also want to repeat something again, and that is, this is a company that has played by the rules, that has been cooperative with the United States, a country that's an ally in the War on Terror, and it would send a terrible signal to friends and allies not to let this transaction go through."

- President Bush, 2/21/06

"[T]he military-to-military relationship with the United Arab Emirates is superb. ... They've got airfields that they allow us to use, and their airspace, their logistics support. They've got a world-class air-to-air training facility that they let us use and cooperate with them in the training of our pilots. In everything that we have asked and work with them on, they have proven to be very, very solid partners."

- General Peter Pace, Chairman Of The Joint Chiefs Of Staff, 2/21/06

The United Arab Emirates (UAE) Is A Longstanding Friend And Ally Of The United States. The United States and UAE have a longstanding alliance. The UAE is a key partner of the United States in the War on Terror, helping to advance Middle East peace efforts. The UAE is also a vibrant trading partner and has provided critical support in the wake of Hurricane Katrina.

The UAE Is A Key Partner In The War On Terror. The UAE provides U.S. and Coalition forces unprecedented access to its ports and territory, overflight clearances, and other critical and important logistical assistance. Today, the UAE is providing assistance to the missions in Afghanistan and Iraq, combating terrorists by cutting off their financing, and enhancing America's homeland security by actively participating in initiatives to screen shipments and containers.

• UAE Ports Host More U.S. Navy Ships Than Any Port Outside The United States. The UAE provides outstanding support for the U.S. Navy at the ports of Jebel Ali - which is managed by DP World - and Fujairah and for the U.S. Air Force at al Dhafra Air Base (tankers and surveillance and reconnaissance aircraft). The UAE also hosts the UAE Air Warfare Center, the leading fighter training center in the Middle East.
• The UAE Is A Partner In Shutting Down Terror Finance Networks. The UAE has worked with us to stop terrorist financing and money laundering, including by freezing accounts, enacting aggressive anti-money-laundering and counter-terrorist financing laws and regulations, and exchanging information on people and entities suspected of being involved in these activities.
• The UAE Is An Established Partner In Protecting America's Ports. Dubai was the first Middle Eastern entity to join the Container Security Initiative (CSI) - a multinational program to protect global trade from terrorism. Under CSI, a team of U.S. Customs and Border Protection officers is permanently stationed inside Dubai's ports, where they work closely with Dubai Customs to screen containers destined for the United States. Cooperation with Dubai officials has been outstanding and a model for other operations. Dubai was also the first Middle Eastern entity to join the Department of Energy's Megaports Initiative, a program aimed at stopping illicit shipments of nuclear and other radioactive material.
• The UAE Is A Critical Partner In Afghanistan. The UAE extends vital military and political support to Operation Enduring Freedom in Afghanistan and substantial financial and humanitarian support to Afghanistan and its people.
• The UAE Is Supporting The New Iraqi Government. The UAE has provided significant monetary and materiel support to the Iraqi government, including a pledge of $215 million in economic and reconstruction assistance.

The UAE Is Supporting Middle East Peace Efforts. The UAE is a moderate Arab state and a long-time supporter of all aspects of Middle East peace efforts. The U.S. and the UAE are also working together to create a stable economic, political and security environment in the Middle East.

The UAE Provided $100 Million To Help The Victims Of Hurricane Katrina. The UAE was one of the first nations to offer financial aid to the U.S. after Hurricane Katrina struck the Gulf Coast. UAE's $100 million donation was one of the largest by any nation.

# # #

http://www.whitehouse.gov/news/releases/2006/02/print/20060222-10.html

[Cboldt]

More from the White House - a VERY extensive defense.

Published September 20, 2005; Relisted at WH website on Februay 21, 2006
The National Strategy for Maritime Security

Seppech on February 21, 2006
President Discusses Port Security

[BubbaTheRocketScientist]

Didn't have to read past the second sentence to find misinformation. The company is not a private company as implied, it's a branch of a foreign government.

[BubbaTheRocketScientist]

DP World, a UAE-based commercial entity,

Nicely stated. Implies it's a private or publicly owned corporation, when in reality DP World is a state-operated organization, no more than a part of the UAE government.

[Mike Darancette]

The Transaction Is Not About Port Security Or Even Port Ownership, But Only About Operations In Port. DP World will not manage port security, nor will it own any ports. DP World would take on the functions now performed by the British firm P&O - basically the off- and on-loading of cargo. Employees will still have to be U.S. citizens or legal permanent residents. No private company currently manages any U.S. port. Rather, private companies such as P&O and DP World simply manage and operate individual terminals within ports.

We say again:
No private company currently manages any U.S. port. Rather, private companies such as P&O and DP World simply manage and operate individual terminals within ports.

Get it MSM morons?

[Marine_Uncle]

Thanks Cboldt for the comprehensive compilation of facts. I shall bookmark it right now. Hopefully more Freepers shall better understand what the issue involves. To much knee jerking going on at present.

[mnehring]

http://production.investis.com/po/rns/rnsitem?id=1133247817nRNSc8063U
http://production.investis.com/po/rns/rnsitem?id=1133247826nRN2c8063U
http://production.investis.com/po/rns/rnsitem?id=1133247821nRN1c8063U

These are the terms of sale of P&O to DPI.. a lot of myths are busted here.. especially the big one Hannity keeps repeating that this isn't public information..

[jec41]

Try NSCSA.com The whole argument is bogus. National Shipping Company of Saudi Arabia owned by Saudis owns US port terminals and has been doing business in such since 1979. All this political and MSM propaganda.

[BuglerTex]

Absolutely.

This should be on this thread as well: The UAE news of the purchase

This really was recent news; it was just voted.

[Cboldt]

Hopefully more Freepers shall better understand what the issue involves. To much knee jerking going on at present.

"At present"? LOL. Situation normal. I rather enjoy the flame wars. ;-)

[Cboldt]

Good links to the proposed terms of sale and buyout offer of late November ... I'll "liven" them. I found the same thing under different links, and posted some of the language to point out that the deal isn't done until the conditions are satisfied.

http://production.investis.com/po/rns/rnsitem?id=1133247817nRNSc8063U
http://production.investis.com/po/rns/rnsitem?id=1133247826nRN2c8063U
http://production.investis.com/po/rns/rnsitem?id=1133247821nRN1c8063U

... especially the big one Hannity keeps repeating that this isn't public information.

The CFIUS meeting and analysis isn't a public affair, but the proposed buyout is old news.

[BuglerTex]

no more than a part of the UAE government. Which is itself a privately held entity...sort of. Out here.

[MarcusTulliusCicero]

Oddly, not one of the White House's argument in these talking points you have cited addresses any of the criticisms being labeled at the deal.

[BubbaTheRocketScientist]

National Shipping Company of Saudi Arabia owned by Saudis owns US port terminals and has been doing business in such since 1979.

Point being? It's okay to let more foreign governments operate our ports because somebody in the past had the bad judgment to let that kind of thing happen?

All this political and MSM propaganda.

Agreed, too much propaganda being thrown around over this issue. Just like this press release glossing over the fact that a foreign government will be operating our ports.

[Marine_Uncle]

I have been guilty of recommending this site to people. Sometimes I wonder if it was a wise move.

[Marine_Uncle]

"This really was recent news; it was just voted."
Yes but as has been pointed out, the deal was known and fully discussed in public arena since November of 2005. In other words, L/MSM and other sources made public comments on the future deal. Nothing has been done in secret.

[Cboldt]

I have been guilty of recommending this site to people. Sometimes I wonder if it was a wise move.

I still do, with the caveat that signal to noise can be really bad at times. BUt the rule "you can't believe everything you read or hear" applies here too - the benefit of "here" is that both sides are usually argued, which is a stark contrast to most of the media.

That said, the character of FR has changed much, and several times. It's less of a news gathering and serious forum now, and more of an echo chamber with sharply defined factions breaking primarily on party-line.

[Marine_Uncle]

Roger that long timer. I had sensed a shift just since the short time I have been here.

[jec41]

Point being? It's okay to let more foreign governments operate our ports because somebody in the past had the bad judgment to let that kind of thing happen?

Point being we don't own any international shipping lines and if we don't give them access we can't ship. Most don't know the difference between port terminals and seaports. In the NY port of entry (seaport) there are ~102 terminal ports. The two that Dubai are buying are about 2000 ft of docking access. Its the same as a International Land-port or International Airport. If you don't buy or lease a terminal you can't land. American, United, British, France and Dubai Airlines when landing at a Airport have to go to different terminals they have leased or purchased or they can't land at that airport. When leaving the passengers or cargo have to go through airport security before entering any terminal. When arriving the passengers and cargo have to go thorough customs when leaving the terminal. Its the same with port terminals in seaport or land-ports. The security is handled by the sea or air port not by any port terminals.