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.
And your point is???????????? LOL, Just kidding! - I've got the point.
I have requested that Peach quit posting to me since all she does is harass me. I avoid her and will continue to do so in the future.
LOL..........probably not.
Kabars response:
"......What did Bush have to do with placing Saddam in power?"
__________________
Unfortunately these America-hating left-wing nutbag assertions go unchallenged and then enter even the conservative mentality as urban legends.
Another one surfaced in the looney geography teacher caper in Colorado. Everyone was all upset about him ranting his "opinion" about the President. But nobody seems concerned about his plain mis-statement of fact. Included was the Urban Legend that during the Iraq -Iran War, we supplied Iraq with, in Mr. Bennish's words, "Airplanes, missles, guns and tanks. Wrong all all 4 counts. But because it goes unchallenged, it's just accepted as "common knowledge.'
"Are there no businessmen on this thread?
I can guarantee you that if the shoe were reversed, our country would do EXACTLY what the UAE is doing."
_____________________________
You are absolutely right!
If I'm denied the opportunity to compete in a specific market. I take my business elsewhere.
On a micro scale, I stopped shopping at Target because of their Christmas policies. Why should a huge nationally owned company be any different?
That might give `em a little "perspective".
Me thinks you have it backwards. They are allowing the use of their country to our military. Arabs only need our protection if they are our friends. Killing this deal will harm our security, not help it.
What evidence is there that we-or anyone else, for that matter-are preparing for a military strike-let alone, the sustained air campaign that disabling a nuclear program that's been in place for over a decade would require-against the IRI?
So much for civility on FR, eh? Well, I guess those folks approve of welching on deals with allies--at this rate, we won't have any left in no time at all. This is not a good time to be making still more enemies in that region. (And anyone thinking that only Dubai will be peeved over this, think again. Our word isn't worth much if we go back on this deal, and don't think it won't be noted.)
we shouldn't have to be drawing up sides like this.
It only benefits people like Hillary and Schumer.
LOL
who is going to take them over?
Oman?
Saudi?
LOL
they're ALL RELATED!!!
The alarmist hysteria over this deal is breathtaking.
I suppose that is their choice to cancel the deal with Boeing. UAE doesn't treat Jews very well I hear. Of course, that comes as no surprise. If Bush does push this through, I think there will be payback come fall elections. Time will tell.
ok call me an appeaser.
That's call you can do. Call people like me appeasers and piss off our allies in a crucial region of the world.
Way to freakin go.
Semper Fi
Dubai presses on with port takeover
http://www.metronews.ca/reuters_international.asp?id=135897
DUBAI (Reuters) - Dubai Ports pressed ahead on Thursday with a takeover that gives it control of six major U.S. ports despite a Congress committee vote to block the deal.
SNIP
"It's American double standards. Do you think that businesses and governments here won't react and even retaliate?" said Wadah Al Taha of the National Bank of Abu Dhabi.
You obviously don't know what "threat" means. UAE remainded the brainless that actions have consequences. Piss on their head and pay a price. Presumably one could piss on yours without consequence since you wouldn't want to "threaten" anyone.
Keep following Chuck the Schmuck's lead HE really has the best interests of the Nation at heart.
You are quite correct. People seem to be missing this from the article:
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.
well when you figure out how to get a deep water port in that area of the world WITHOUT having Arab Muslims as our ally, you tell me.
Those believing that meaningful peace can be "negotiated" prior to reform, containment or defeat of this ideology, are reminiscent of Neville Chamberlain
Had to post it again!!!
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