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.
They have us there, just as with Qatar and Bahrain, because they want our protection from larger Arab countries. This won't change.
They are raising a large stink for Arab consumption.
Just to confirm, is that the extent of your knowledge of the UAE's role in Iraq and their role, with respect to support of US Military operations in the Middle East theatre?
Funny, I wonder why the chairman of Israel's largest shipping company doesn't feeeeel the way you do!
(Feelings, nothing more than feelings!) My goodness, there was a song about feeeeelings! Of course, if I had to guess, I'd take a wild stab and say the chairman actually thinks instead of feeeeels.
http://www.freerepublic.com/focus/f-news/1588659/posts Israeli company endorses port deal Posted on 03/02/2006 12:42:32 PM CST by jmc1969 The chairman of Israel's largest shipping firm has strongly backed a deal that would give a Dubai-based shipping company control of several U.S. port terminals. The revelation comes as Britain's Royal Court of Justice tentatively approved the $6.8 billion merger between DP World and Britain's P&O, the current operator of terminals at six key U.S. ports. But pending an appeal by U.S.-based cargo handler Eller & Co., the judge has stayed that approval until 3 p.m. Friday. Nonetheless, DP World has agreed not to assume control of P&O's port operations until a 45-day security review can take place. In a letter to Sen. Hillary Clinton, obtained exclusively by CNN, Israel's Zim Integrated Shipping Services CEO, Idon Ofer, called DP World a strong business partner, despite the United Arab Emirates' boycott of Israel. "During our long association with DP World, we have not experienced a single security issue in these ports or in any of the terminals operated by DP World," Ofer said in a letter written February 22. "We are proud to be associated with DP World and look forward to working with them into the future." (Excerpt) Read more at cnn.com ... |
Sally, you have been so great with your posts on this subject!
Coming late to this thread I can't read all 1,300+ posts before putting in my 2 cents worth....
Not to worry, all the Dems have to do is pass a law that says Dubai CAN'T do what they want. Problem solved.
Good for you. I am disgusted that others will put profits above national security. No nation should be controlling (or even owning) national security interests. Believing otherwise goes against our national sovereignty.
How is this any different than taking the correct stance on our border issues, even at the expense of Mexican money, investments, etc.?
Right... Do you really think these small Arab countries want to kick us out and take care of their own national security?
BINGO!
From GlobalSecurity.org....
The United Arab Emirates [UAE] has provided valuable support to the United States and coalition operations in the region, allowing the deployment of aircraft and the use of its airspace. This includes facilities for an aerial refueling unit that supports Operation Southern Watch as part of UN sanctions against Iraq, and liberty privileges for US service members at the port of Jebel Ali.
Intensive use has been made of commercial ports, including about 200 calls a year at the Jebel Ali port in the United Arab Emirates. Other important ports [Mina] in the UAE are Abu Dhabi, Al Fujayrah, Khawr Fakkan, Mina Khalid, Mina Rashid, Mina Saqr, and Mina Zayid. The Fujairah to Jebel Ali land link is the Navy’s logistics pipeline to the Gulf should the Strait of Hormuz be closed. Cargo unloaded at Al Fujairah, on the Gulf of Oman, can be subsequently transported via highway to destinations on the Arabian Gulf and hence bypass the need for transit through the Strait of Hormuz.
The United States has enjoyed friendly relations with the UAE since 1971. Private commercial ties, especially in petroleum, have developed into friendly government-to-government ties which include security assistance. The breadth, depth, and quality of U.S.-UAE relations increased dramatically as a result of the U.S.-led coalition's campaign to end the Iraqi occupation of Kuwait. The United States was the third country to establish formal diplomatic relations with the UAE and has had an ambassador resident in the UAE since 1974.
Situated along the Arabian Gulf, Abu Dhabi is the site of an international airport. Urban development projects have relieved a housing shortage caused by rapid growth since the late 1960s. The main thoroughfare is the 7-kilometer (4-mile) long Corniche, a landscaped, seafront promenade. Abu Dhabi was founded in the 1760s and in 1795 became the seat of rulers of the emirate of Abu Dhabi. The town had only local significance until the discovery of oil reserves in the area in the late 1950s and early 1960s. When oil exports began in 1962, the few low-rise dwellings scattered around the Old Fort gradually gave way to 10 - 11 storey tower blocks, and these were subsequently replaced by even larger towers. One of the many unofficial names Abu Dhabi has acquired is - 'Manhattan of the Middle East'. The other common name is - 'Garden City of the Gulf'. In 1971 the city was made the federal capital of the newly formed United Arab Emirates. It is also the capital of the emirate of Abu Dhabi.
Dubai is the second largest of the seven emirates that make up the country of U.A.E. Once a central trading center for the region, the city continues the tradition by offering a host of 'souqs' offering everything under the sun; Gold, persian rugs, antiques and spices are just a few of the goods one encounters while browsing the markets. Aside from the shopping, the surrounding area is also full of interesting places to tour. Desert safaris, canyon hikes and many rounds of golf kept the crew busy during their stay.
Fujairah, the youngest of the UAE's seven emirates, fronts the Gulf of Oman and makes a good base for exploring the eastern coast, regarded as the prettiest part of the country. It boasts a museum showcasing archaeological and ethnographic displays, a spooky old town and a 300 year old fort. Bithna, 12km (8mi) north-west of Fujairah, has several archaeological sites, including the Long Chambered Tomb, thought to have been a communal burial place, and an impressive fort.
Fujairah Emirate is the seventh in the union of U.A.E. It is the bride of the Emirates on the East Coast of the Gulf of Oman. It is the only Emirate on the Gulf of Oman, its area is 1,450 square kilometers. It is characterized by its mountains that have different colors, its fertile valleys that are full of natural water springs and its coastal belt with its clean golden sands extending to more than 90 kilometers. 80% of the population of the Emirate inhabit this coastal belt. The total population of the Emirate is 80,000, according to the last census of the State Ministry of Planning. 20% of the population live in the oasis and mountainous valleys. Al Fujairah was named after a small stream in the Emirate. The Emirate lies in the Eastern part of the Arabian Peninsula. It is considered to be the crossing part to and from the states of the Gulf Cooperation Council, across the Indian ocean to the states of East Asia, Europe and the whole world.
Yes, that's right. It's a good strategic move to let an Arab sheikhdom operate U.S. ports. Stop deluding yourself.
"It is a business deal to "level the playing field" so foreign agents and countries can loot our domestic economy."
How does said looting take place? No money exchanges hands that wasn't already so doing.
I compare these to a food-fight at the family reunion. As much as we love our crazy Aunt Sally; it is FUNNY when the guacomole hits her face! To say nothing about sneaking in an atomic wedgie on Cousin Theron. You still stay a family. Even while planning the SaranWrap commode for next year. The wretched trolls that dare to interlope ar dealt with harshly.
Is the Arab Sheikhdom or the Chinese government better?
"True friends of America support Israel; they don't prohibit goods going to or from Israel from entering or being shipped through the ports they control. Somehow I do not think that America's Jewish population wants people that hate their guts controling American ports."
I understand your sentiment but let's not put this in terms that make it sound like we are blaming Jews for the port deal failure.
Ancient revisionist history?
Hussein took power in 1963!
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