Posted on 05/04/2006 8:06:30 AM PDT by FerdieMurphy
The silence on Capitol Hill has been deafening.
On April 28, 2006 the White House announced the approval by President George Bush regarding the Committee on Foreign Investments in the United States (CFIUS) of its recommendation that Dubai International Capital LLC (DIC), a subsidiary of Dubai Holding and a Dubai government owned conglomerate, to assume the U.S. operations of Doncasters Group Ltd.
Just seven weeks prior, there was political posturing, grandstanding and outrage expressed by both political parties in the U.S. Congress when it was revealed, through the U.S. media, that Dubai Ports World, also of Dubai Holding, would takeover the United Kingdom company, Pinisular and Oriental Steam Navigation Co. (P&O), and its port operations of six major East Coast ports. It too had been approved by CFIUS. But now, the American public has heard nary a discouraging word, following this latest transaction.
On December 14, 2005, DIC purchased Doncasters, a privately held United Kingdom-based company, for US$1.24 billion. Doncasters is a leader in international engineering, manufacturing precision components and assemblies for the aerospace industry and military aircraft, components for industrial gas turbine engines used in military tanks, in addition to automotive turbochargers and medical orthopaedic devices. Also, DIC manufactures precision parts for defense contractors such as Boeing, Honeywell, Pratt & Whitney and General Electric.
Presently, Doncasters operates 9 industrial plants located in the U.S., which includes manufacture of turbine fan parts for the U.S. Abrams Battle Tank, and sensitive components for the new F-35 Joint Strike Fighter jet. The plants are based in Connecticut which has two factories and two in Alabama, with one each in Georgia, Massachusetts, California, Oregon, and South Carolina.
Connecticut and Georgia, however, are locations where manufacture of most of the sensitive technologies takes place. Georgia is home to Ross Catherall U.S. Holdings Inc., owned by Doncasters, which now must divest its interest to DIC. Ross Catherall supplies turbine engine blades for the U.S. Department of Defense and the military’s tanks. In Connecticut, New England Airfoil Products and Doncasters Precision Castings, manufacture precision alloy parts for both aircraft and tank engine parts.
But the national security implications of a foreign entity operating key factories that are Department of Defense suppliers might well have demanded the same call for scrutiny from the Congress as the P&O deal. According to Senator Charles Schumer, (D-NY), who launched the immediate outcry for the lack of disclosure from both the Bush administration and CFIUS on the ports deal, stated on April 28th that “There are two differences between this deal and the Dubai ports deal. First, this went through the process in a careful, thoughtful way, and second, this is a product not a service and the opportunity to infiltrate and sabotage is both more difficult and more detectable.”
Schumer’s statement, however, is so transparent that it is now clear to those who were skeptical about the theatrics on Capitol Hill over the ports deal, were more right than they were wrong. For example, the only difference between the CFIUS investigation over the ports and Doncasters deals is that the port deal went through a 30-day investigation, rather than both a 30-day and 45-day review as in the Doncasters deal. The contents of the CFIUS review for the ports deal was revealed but to a handful of Congressional leaders and only subsequent to its recommendation to approve it, due to the outcry to the White House, which was so politically overwhelming.
To date, we do know that the President did distribute some of the classified information on the Doncasters deal to House Speaker, Dennis Hastert, and other undisclosed lawmakers on April 28th. Chairman of the House Homeland Security Committee, Peter King (R-NY), also joining Schumer in his relentless criticism over the ports deal, has been brief in his latest statements regarding the Doncasters deal. “This investigation was a significant improvement over what happened before.” But the CFIUS review, presided over by the Secretary of the Treasury, remains a secret process by law, accounting to no party or entity, during its review process. And CFIUS need only enjoin appointed underling representatives of 12 government agencies, including the Department of Defense and the Department of Homeland Security.
Representative John Barrow (D-GA) who represents the Congressional district, in which Ross Catherall is located, has a different point of view than his colleagues in New York, however. “We’ll never know if continuing down this path of selling of our national defense industries will end up hurting us in the long run. We all have to draw the line when it comes to selling our national defense establishment. We don’t want to outsource our military industrial complex one piece at a time.”
Barrow was not satisfied with denial of access as to the status of the CFIUS review or any details forthcoming since the deal has been approved by the President and remains unconvinced that American companies could not make the tank components necessary for the tank engines. He recently visited the Doncasters’ facility in Rincon, Georgia, joined by Rep. Ike Skelton (D-MO), ranking member of the House Armed Services Committee. “Doncasters was more forthcoming than our government,” Barrow commented, with respect to the proposed deal.
Barrow and various other members of the Congress have proposed numerous pieces of legislation, since the ports deal, to provide more transparency between CFIUS and the Congress. This, they believe, would enable more Congressional input as well as oversight on key transactions involving U.S. national security assets and interests. But when and if such legislation will ever be realized remains in question. And the Congress as a governing body does not have a good track record for oversight generally of any legislation it passes, nor does the Congress project commitment in doing so.
The Bush Administration did add some conditions to the agreement with DIC, however. One included that there would be assurances made that there would be no interruption of the supply stream of product, necessary for military operations, especially in a time of war. In addition, all manufacturing is to remain in the U.S. The need for those two agreement amendments alone implies the dangerous precedent being set with foreign entities having control of strategic U.S. assets. The absence of such language in the agreement would have left the flow of supply and the source of manufacture up to Dubai. Yet, the mechanisms in place in the agreement to police such requirements have not been publicly disclosed nor does the public know if the Congress will eventually get access to the agreement’s requirements.
Many U.S. economists project that as long as the U.S. is saddled with an over $800 billion trade deficit as well as being dependent on foreign oil from the Middle East, that more and more U.S. assets, whether strategic or otherwise remain at risk of being sold. While at the moment we do not have any alternatives for direct sources of petroleum, we do have control over which U.S. assets are sold off, keeping in mind the best interests of the American people and the U.S. economy.
But sadly, it appears that the ruckus from Congress over the ports deal not only inflamed the emotions of the American people, with respect to national security being put at risk, but was but a pretense in the name of political expedience. And such equivocation and lack of fortitude from U.S. lawmakers will continue to remain the biggest liability to U.S. national security and for the foreseeable future.
This is the same guy that prefers open borders, no wiretapping for terrorists, closing Gitmo, etc.
I don't know about the rest of the country but I didn't hear about it til the day it was signed over to the terrorists...Apparently our Prez and Congress kept the secret from us...
LOL!! A noob signs up, and all he's done is trash Bush.
DU getting boring for ya???
This Doncasters deal has been in the WSJ and other publications for three months; it was mentioned with the Dubai ports deal as "the next big issue coming down the road."
The fact is, Dubai was slapped down from the port terminals by union-loving Democrats and craven, pandering Republicans who tapped into a nasty nativist streak.
THIS is the extent of the outrage? No Sean Vannity and Michael Slavage rants? No spittle flecked bloggers? No Chuckie Schumer?
...said the Republican Party to its base.
Yep. Nothing but whimpers and sputters.
Even "do not dub me shapka brohman" (or whatever his name is) is too bored to ping the known universe so he can harrumph.
I don't think it's irrational to have a 'fear' of someone or something based on objective facts on record and available to all. It is perfectly reasonable that a minority behaving in an erratic, inhumane and violent way reflects on the majority. In 1940 only a minority of Germans were involved in the holocaust of the concentration camps. Surely we should have had German companies building our subs.
Heyyy, Iscool. Last time I saw your name on FR you were doubting that only one company submitted a bid for the turbine blades Doncasters makes. When I proved that was the case, you never even bothered to respond. Now you are claiming the President and Congress have kept this whole deal secret. It should be incredibly clear now that you really don't know the facts concerning this issue. And now that it is becoming clear how badly (and easily) you were manipulated by the likes of Schumer and our media over the Dubai ports deal, you don't even have what it takes to admit you've been used. Well guess what...you've been used.
Yes, and I have written about that for years. I'm surprised that more people aren;t upset that a country that has nuclear warheads pointed at our country is in control of ports, waterways, and other vital enterprises. And the Saudis should not be allowed ot run ports in our country either, as active supporters of terrorism. Unfortunately, that doesn't make the news nearly as much as the Dubai deal (which happily went Dubai-bye) or even teh Red Chinese situations.
Oh I probably don't know as many facts as you do, but I know a couple of facts...And one fact I know is that the muzlims are robbing us blind with the cost of crude oil...And with the money they're shaking us down for, they're using it to buy up what's left of any industry in the U.S...
Another fact I know is that muzlims are fanatically religious and their religious book says to defeat infidels (that's us) any way they can even if they have to murder us, our wives and children included...
I was just as outraged when the Chinese took over ports in Calif. and when our gov't gave the Panama Canal to the Chinese...
I rarely watch tv and I don't get the local newspaper...If it wasn't for FR, I probably wouldn't know who Shumer is...So he doesn't get any credit for swaying me or probably anyone else...
But then I have to ask you, who convinced you that this is a good move for American citizens???
No they aren't. The companies being acquired are British companies with U.S. subsidiaries.
I'm not even going to attempt to explain supply and demand in the oil market.
"You may step down!"
I don't know where you get this "rest of us" crap from Johnnie, but the majority of Americans want what I do: Aliens deported and no more Muslims running American Security!
Individuals like you, and like the gutless swine that comprise the Political Class, are the problem with American security.
I suppose you see nothing wrong with Jimmy Kahtah and the giveaway of the Panama Canal that is now operated by China. Before we know it we'll be like the lazy Fijians who took frequent naps and before they knew it the alien Indian population had taken over the government.
Granted the Indians aren't as bad as having the killer muslims running America, but it's not a stretch.
How stupid can our government be in promoting these muslim security companies into our country to run things? I guess all those mosques that have been built here will be able to be utilized to the fullest. Some of our cities will be another Marseilles where muslims will be the majority.
Either you're not thinking or you have a vested interest in this folly.
Anyone who, as you put it, crawls under the bed will no doubt find you there someday soon.
May God forbid.
Keep both hands on your "butt", close your eyes and pray that your head doesn't roll out from under that bed.
Great point. We need Dabai like we need another 9-11!
That might be true if the only place we got oil was from the Middle East. But the top two oil importers to this country are Mexico and Canada. In fact, of the top 10 oil importers to this country, only two are Muslim countries. And NOBODY is forcing us to buy oil from anyone. Meanwhile, the world demand for oil is skyrocketing while the supply stays essentially the same. That is despite the fact that we have billions of barrels of untapped oil just off our shores. So once again, you are letting your emotions take the place of facts, and that sets you up for easy MSM manipulation.
"Another fact I know is that muzlims are fanatically religious and their religious book says to defeat infidels (that's us) any way they can even if they have to murder us, our wives and children included..."
Well, that is true. But is has been true for 600 years. They can't even manage that in their own countries. The fact is, most Arab states are in the midst of very radical reforms taking them further away from radical Islam. The only places radical Islamists are finding success are in third world *$&@holes where the people have no reason to live anyway. I don't know about you, but they don't scare me.
"But then I have to ask you, who convinced you that this is a good move for American citizens???"
It is part of the free market. That is the best part of how our system works. No American group of investors was interested in buying Doncaster Inc. Do you suppose the federal government should have forced some American company to buy them out? That isn't how this country works. Nor should it be. American's employed in the factories involved will continue to work doing exactly the same thing they did before the deal was approved. It has ZERO impact on our national security or sovereignty despite the emotional rants you might read on FR.
I applaud your decision to ignore the MSM. But that doesn't absolve you from learning the facts in some other way. If you launch into an emotional rant on some topic without first arming yourself with the facts, you do absolutely nothing useful except burn a few calories and feed a fire that doesn't really care what it's burning.
LOL!! Yeah, sure. Try that BS on somebody else.
So I guess you are suggesting we should stop all our Persian Gulf and Mediterranean Sea operations. That is brilliant. I'm sure we'll have no problems supporting operations in the Middle East if we just limit our Navy to operating in the Atlantic and Indian Oceans.
The ignorance displayed in threads like these is phenomenal.
We need a supply scheme that makes more sense than trusting muslims to help us in our war against their Koran-reading brethern.
What's not brilliant is the blind trust that some appear to have when it comes to the UAE!
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