Port Panic Abates as Reason Returns

Port Deal To Have Broader Review
Dubai Firm Sought U.S. Security Probe

By Jonathan Weisman
Washington Post Staff Writer
Monday, February 27, 2006; Page A01

The Bush administration said yesterday that it has accepted a proposal from a Dubai maritime company to conduct a 45-day review of the national security implications of the company's plans to take control of significant operations at six U.S. ports.

The announcement by Dubai Ports World, brokered by the White House and Senate Majority Leader Bill Frist (R-Tenn.), appears to satisfy the demands of many members of Congress, who had threatened to force a security review if the administration would not conduct one. The deal also offered pledges to reassure the United States that the ports deal would not pose any threats to American safety and security.

The administration had approved DP World's $6.85 billion purchase of London-based Peninsular and Oriental Steam Navigation Co. (P&O) earlier this month without conducting a security review, after a broad interagency panel that looked at the transaction concluded the takeover of port operations in the United States would not affect the nation's safety.

But last week, members of both political parties erupted in furor, questioning the administration's judgment and promising to delay the deal, if not scuttle it. After President Bush vowed to veto any legislation that would thwart the Dubai company's plans, the most public clash between the Republican Congress and the Bush White House seemed in the offing. But yesterday's announcement may have headed off any showdown.

"We recognize that there are concerns regarding DP World's acquisition of P&O's U.S. terminal operations. Despite having already obtained approval by the federal government, we continue to take voluntary steps to assure people that the security of the U.S. will not be harmed as a result of this acquisition," said Edward H. "Ted" Bilkey, DP World's chief operating officer.

White House spokesman Scott McClellan said: "We are pleased that Dubai Ports reached a middle ground with Congress. The transaction was closely scrutinized by the appropriate national security and intelligence officials, and important safeguards are in place. We believe, however, the additional time and investigation at the request of the company will provide Congress with a better understanding of the facts, and that Congress will be comfortable with the transaction moving forward once it does."

Have you recovered from your bout of hysteria yet? Have you awakened to the fact that most of our ports are operated by foreign interests? Are you aware that the United Arab Emirates has been one of the strongest allies of the United States in the war against al Qaeda and international terrorism, one of the first signatories of the shipping container agreement, and a source of intelligence in the war? Have you caught your breath yet? Relax, this company, and the nation, have nothing to hide hear, that is why they have volunteered to delay the take over while the posing and posturing in Congress goes on. Democrats and Republicans alike have to pretend they are concerned with your welfare. They all heard your (and mine, I fear) panicked voices when this was announced and they have moved, motivated by the instinct for self-preservation, to interject themselves in the process.

I have recovered my composure enough to realize that the political effect of this, which so alarmed me, will gradually blow over, and aiding that is the actions Dubai Ports World is now taking. It would be better, as far as I am concerned, for there to be an American company performing this job, but there isn't. Since that is the case I hardly see much difference between DPW running our ports and China COSCO running the a portion of the ports for in Los Angeles. In fact I am more concerned with China than I am with the UAE.

Full Story: Port Takover, Further Investigation

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