Bid to nix port sale is gaining steam

White House Defends Port Sale to Arab Company
White House Defends Port Sale to Arab Company
By Ted Bridis and Devlin Barrett
The Associated Press
Thursday 16 February 2006

Washington - The Bush administration on Thursday rebuffed criticism about potential security risks of a $6.8 billion sale that gives a company in the United Arab Emirates control over significant operations at six major American ports.

Lawmakers asked the White House to reconsider its earlier approval of the deal.

The sale to state-owned Dubai Ports World was "rigorously reviewed" by a US committee that considers security threats when foreign companies seek to buy or invest in American industry, National Security Council spokesman Frederick Jones said.

The Committee on Foreign Investment in the United States, run by the Treasury Department, reviewed an assessment from US intelligence agencies. The committee's 12 members agreed unanimously the sale did not present any problems, the department said.

"We wanted to look at this one quite closely because it relates to ports," Stewart Baker, an assistant secretary in the Homeland Security Department, told The Associated Press. "It is important to focus on this partner as opposed to just what part of the world they come from. We came to the conclusion that the transaction should not be halted."

The unusual defense of the secretive committee, which reviews hundreds of such deals each year, came in response to criticism about the purchase of London-based Peninsular and Oriental Steam Navigation Co.

The world's fourth-largest ports company runs commercial operations at shipping terminals in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

Four senators and three House members asked the administration Thursday to reconsider its approval. The lawmakers contended the UAE is not consistent in its support of US terrorism-fighting efforts.

"The potential threat to our country is not imagined, it is real," Rep. Mark Foley, R-Fla., said in a House speech.

The Homeland Security Department said it was legally impossible under the committee's rules to reconsider its approval without evidence DP World gave false information or withheld vital details from US officials. The 30-day window for the committee to voice objections has ended.

DP World said it had received all regulatory approvals.

"We intend to maintain and, where appropriate, enhance current security arrangements," the company said in a statement. "It is very much business as usual for the P&O terminals" in the United States.

In Dubai, the UAE's foreign minister described his country as an important US ally but declined to respond directly to the concerns expressed in Washington.

"We have worked very closely with the United States on a number of issues relating to the combat of terrorism, prior to and post Sept. 11," Sheik Abdullah Bin Zayed al-Nahyan told The Associated Press.

US lawmakers said the UAE was an important transfer point for shipments of smuggled nuclear components sent to Iran, North Korea and Libya by a Pakistani scientist, Abdul Qadeer Khan. They also said the UAE was one of only three countries to recognize the now-toppled Taliban as Afghanistan's legitimate government.

The State Department describes the UAE as a vital partner in the fight against terrorism. Dubai's own ports have participated since last year in US efforts to detect illegal shipments of nuclear materials.

Rep. Vito Fossella, R-N.Y., urged congressional hearings on the deal.

"At a time when America is leading the world in the war on terrorism and spending billions of dollars to secure our homeland, we cannot cede control of strategic assets to foreign nations with spotty records on terrorism," Fossella said.

Critics also have cited the UAE's history as an operational and financial base for the hijackers who carried out the attacks of Sept. 11, 2001.

"Outsourcing the operations of our largest ports to a country with a dubious record on terrorism is a homeland security and commerce accident waiting to happen," said Sen. Charles Schumer, D-N.Y. "The administration needs to take another look at this deal."

Separately, the Port Authority of New York and New Jersey said Thursday it will conduct its own review of the deal and urged the government to defend its decision.

In a letter to the Treasury Department, Port Authority chairman Anthony Coscia said the independent review by his agency was necessary "to protect its interests."

The lawmakers pressing the White House to reconsider included Sens. Schumer, Tom Coburn, R-Okla., Frank Lautenberg, D-N.J., and Chris Dodd, D-Conn., and Reps. Foley, Fossella and Chris Shays, R-Conn.

What is next the sale of the capital buildings to the Saudis?

President's gone insane' - 9/11 dad






The selling of our ports to the Arabs was a major topic on most of the of the Sunday talk shows. And aside from the Governments man Chertoff it was either negatively questioned or roundly condemned.

The only way this makes political sense is if the administration is trying to keep something even more distasteful off the agenda.

It should be noted that this is the first nonpartisan action to be seen in the nation since bush was elected. It is being questioned and our condemned by members of both political parties. The uniter by his action has finally managed to do some uniting

Firm Sues to Block Foreign Port Takeover
Firm Sues to Block Foreign Port Takeover
The Associated Press
Saturday 18 February 2006

Washington - A company at the Port of Miami has sued to block the takeover of shipping operations there by a state-owned business in the United Arab Emirates. It is the first American courtroom effort to capsize a $6.8 billion sale already embroiled in a national debate over security risks at six major U.S. ports affected by the deal.

The Miami company, a subsidiary of Eller & Company Inc., presently is a business partner with London-based Peninsular and Oriental Steam Navigation Co., which Dubai Ports World purchased last week. In a lawsuit in Florida circuit court, the Miami subsidiary said that under the sale it will become an "involuntary partner" with Dubai's government and it may seek more than $10 million in damages.

The Miami subsidiary, Continental Stevedoring & Terminals Inc., said the sale to Dubai was prohibited under its partnership agreement with the British firm and "may endanger the national security of the United States." It asked a judge to block the takeover and said it does not believe the company, Florida or the U.S. government can ensure Dubai Ports World's compliance with American security rules.

A spokesman for Peninsular and Oriental indicated the company had not yet seen the lawsuit and declined to comment immediately.

The lawsuit represents the earliest skirmish over lucrative contracts among the six major American ports where Peninsular and Oriental runs major commercial operations: New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. The lawsuit was filed moments before the court closed Friday and disclosed late Saturday by people working on the case.

The sale, already approved by the Bush administration, has drawn escalating criticism by lawmakers in Washington who maintain the United Arab Emirates is not consistent in its support of U.S. terrorism-fighting efforts. At least one Senate oversight hearing is planned for later this month.

The Port of Miami is among the nation's busiest. It is a hub for the nation's cruise ships, which carry more than 6 million passengers a year, and the seaport services more than 30 ocean carriers, which delivered more than 1 million cargo containers there last year.

A New Jersey lawmaker said Saturday he intends to require U.S. port security officials be American citizens, to prevent overseas companies operating domestic shipping facilities from hiring foreigners in such sensitive positions. Republican Frank A. LoBiondo, chairman of the Coast Guard and Maritime Transportation Subcommittee, cited "significant" security worries over the sale to Dubai Ports World.

Caught by surprise over the breadth of concerns expressed in the United States, Dubai is cautiously organizing its response. The company quietly dispatched advisers to reassure port officials along the East Coast, and its chief operating officer - internationally respected American shipping executive Edward "Ted" H. Bilkey - is expected to travel to Washington this week for meetings on Capitol Hill and elsewhere.

The Bush administration in recent days has defended its approval of the sale, and has resisted demands by Congress to reconsider. State Department spokesman Sean McCormack described the United Arab Emirates on Friday as a "long-standing friend and ally" and said the United States and UAE had a good relationship.

President Bush visited the seaport in Tampa, Fla., but did not mention the dispute Friday. The president said an important element of defeating terrorism was taking precautions domestically and working with local government officials.

"We've got to protect ourselves by doing smart things in America," Bush said. "I appreciate working with the mayors on homeland security issues."

One of those mayors, Martin O'Malley of Baltimore, on Saturday harshly criticized the president's approval of the ports deal as an "outrageous, reckless and irresponsible decision" and urged the White House to reconsider the sale. Baltimore is one of the affected ports, and O'Malley is co-chairman of the U.S. Conference of Mayors' Task Force on Homeland Security. O'Malley also is running for the Democratic gubernatorial nomination in Maryland.

Dubai Ports World declined through a spokesman to respond to O'Malley's remarks.

In New York, families of some victims from the September 2001 terror attacks planned to criticize the deal during a press conference Sunday with Democratic Sen. Charles Schumer, a leading critic of the sale. Schumer said he is dubious any assurances can justify involvement by the United Arab Emirates in American ports.

Schumer and other critics have cited the UAE's history as an operational and financial base for the hijackers who carried out the attacks against New York and Washington.

"A lot of families are incensed by this, because you're talking about the safety of the country," said William Doyle, whose son Joseph died at the World Trade Center. ""We have a problem already in our ports because all of our containers aren't checked, but now they want to add this unknown? It's not right."

LoBiondo's legislative proposal would amend federal maritime laws to require facility security officers, which operate at terminals in every U.S. port, to be American citizens. LoBiondo said there are presently no citizenship requirements, which he said permits foreign companies who are or become partners in domestic terminal operations to employ security officers who are not Americans.

"We cannot be lax about our nation's security nor fail to recognize that our ports are realistic targets of terrorists," LoBiondo said.

arab business leaders sure are smart . many of them were educated in u.s. and other western universities.
when i see interviews with arab business leaders and arab government officials , i am always astonished - but shouldn't be - by their business savvy.

the arab nations have vast reserves of 'petro dollars' that they have to invest safely .
two recent examples come to mind :
- a large investment in mercedes-chrysler corporation,
-the takeover over the fairmount hotel chain .

since the u.s. $ has been falling recently , it makes only sense for those holding large amounts of united states $ to convert these into 'hard assets'.
i'm sure many of these arab business people see the writing on the wall : they may be toppled and loose all their asset locally. so by spreading their investments around, they are making sure to have 'a safe port' in a coming storm.

let's see :
-they are making money selling the oil,
-they are making money in the refinery process by being shareholders in the petroleum companies,
-now they'll also be making money when the oil arrives in united states ports !

(why couldn't my dad have been a rich sheik ?)

hbg

Congress on both sides of the isle are up in arms regarding the subject sale. Legislation is about to be introduced in congress to stop the sale.. The Governors of the port states are looking for ways to stop the sale. And Bush in his infinite wisdom insists it will become fact and has promised to veto any legislation.

Here we go again, MY way or the highway.

Why wouldn't Bush want to make this deal? He loves sucking deep and hard on that oily arab tit.

I have to wonder whose side is Bush on.

au wrote : "I have to wonder whose side is Bush on. "

au, once you have figured it out, please let your neighbours know . thanks for your consideration ! hbg

White House Says Bush Didn't Know About Port Deal

http://aolsvc.news.aol.com/business/article.adp?id=20060218210909990001&_mpc=business%2e10%2e4&cid=842

From au's AOL link



Now, is it possible to know how cafefully the government has looked it over, and not have been aware of the deal? I suppose - just barely.

Has anyone seen a financial spreadsheet on how and to whom profits from the sale will accrue.

In other words, who gets the big bucks?

BBB
Too bad the legislature and the public failed to get as riled up about the sham of our port security as they have over this deal.

The real problem is that the Bush administration has had nearly four years to beef up our port security, starting will inspecting all foreign shipments bound for our ports.

A lot of our so-called homeland security and the billions spent on it is largely cosmetic. This pro-business administration will never enforce actual laws and rules beyond requiring voluntary compliance.

Bush must compulsively jingle those 30 pieces of silver in his pocket, hoping no one notices his betrayal of the American people.

BBB

White House Has Ties to Dubai Firm
White House Has Ties to Dubai Firm
By Michael McAuliff
The New York Daily News
Tuesday 21 February 2006

Washington - The Dubai firm that won Bush administration backing to run six U.S. ports has at least two ties to the White House.

One is Treasury Secretary John Snow, whose agency heads the federal panel that signed off on the $6.8 billion sale of an English company to government-owned Dubai Ports World - giving it control of Manhattan's cruise ship terminal and Newark's container port.

Snow was chairman of the CSX rail firm that sold its own international port operations to DP World for $1.15 billion in 2004, the year after Snow left for President Bush's cabinet.

The other connection is David Sanborn, who runs DP World's European and Latin American operations and was tapped by Bush last month to head the U.S. Maritime Administration.

The ties raised more concerns about the decision to give port control to a company owned by a nation linked to the 9/11 hijackers.

"The more you look at this deal, the more the deal is called into question," said Sen. Chuck Schumer (D-N.Y.), who said the deal was rubber-stamped in advance - even before DP World formally agreed to buy London's P&O port company.

Besides operations in New York and Jersey, Dubai would also run port facilities in Philadelphia, New Orleans, Baltimore and Miami.

The political fallout over the deal only grows.

"It's particularly troubling that the United States would turn over its port security not only to a foreign company, but a state-owned one," said western New York's Rep. Tom Reynolds, chairman of the National Republican Campaign Committee. Reynolds is responsible for helping Republicans keep their majority in the House.

Snow's Treasury Department runs the Committee on Foreign Investment in the U.S., which includes 11 other agencies.

"It always raises flags" when administration officials have ties to a firm, Rep. Vito Fossella (R-S.I.) said, but insisted that stopping the deal was more important.

The Daily News has learned that lawmakers also want to know if a detailed 45-day probe should have been conducted instead of one that lasted no more than 25 days.

According to a 1993 congressional measure, the longer review is mandated when the company is owned by a foreign government and the purchase "could result in control of a person engaged in interstate commerce in the U.S. that could affect the national security of the U.S."

Congressional sources said the President has until March 2 to trigger that harder look.

"The most important thing is for someone to explain how this is consistent with our national security," Fossella said.

I can't remember the last time I was this disgusted.

The first thing I saw this morning when I logged onto the Internet was the headline:

"Bush threatens to veto any legislation against the Port Deal"

Bush and Company have been spending us into oblivion for the past six years. Mr. Bush has not vetoed a single bill in his entire time in office. Not a single one. So what is he threatening to veto now? One of the endless pork barrel spending bills? Hell No! He is threatening a veto to preserve yet another New World Odor giveaway.

I am just ****ing speechless.

(i already posted this on another thread but think it's more appropriate here - should it be moved ? hbg)
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this article gives some background on "Dubai Ports World" , the corporation ready to take over operations of american ports.
the COO of the corporation , ted bilkey, was interviewed by wolf blitzer on CNN this afternoon. mr bilkey stated that DPW will do everything necessary to make sure the deal is closed.
mr bilkey is the son of former senator bilkey(now deceased ?).
mr bilkey stated that former senator dole has been retained as 'counsel' to DPW.
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Posted: February 20, 2006
1:00 a.m. Eastern


© 2006 WorldNetDaily.com

"DUBAI PORTS WORLD" by jerome r. corsi
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Jerome R. Corsi received a Ph.D. from Harvard University in political science in 1972 and has written many books and articles, including co-authoring with John O'Neill the No. 1 New York Times best-seller, "Unfit for Command: Swift Boat Veterans Speak Out Against John Kerry." Dr. Corsi's most recent books include "Black Gold Stranglehold: The Myth of Scarcity and the Politics of Oil," which he co-authored with WND columnist Craig. R. Smith, and "Atomic Iran: How the Terrorist Regime Bought the Bomb and American Politicians."
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The Dubai Ports World acquisition of the London-based Peninsular & Oriental Steam Navigation is being portrayed as the operation of free markets in which the United States should have no objection or interference. Nothing could be farther from the truth.

DPW was formed by a September 2005 merger of Dubai Port Authority and Dubai Port International. DPW is 100 percent owned by the government of the Emirate of Dubai via a Dubai government holding company called the PCFC (Ports, Customs, and Free Zone Corporation). The government holding company is headed by the ruler of Dubai, Shiek Mohammed bin Rashid Al Maktoum, who took over on Jan. 4, 2006, following the death of his father, Sheikh Maktoum.


The financing for the transaction reveals even more clearly that DPW is a governmental agency fronted as a commercial entity. Barclays Capital, the investment banking division of Barclays Bank PLC and Deutsche Bank AG are organizing an international lending syndicate to create a $6.3 billion term loan and a $200 million revolving facility in a $6.5 billion loan deal to finance the acquisition.

This nearly-100 percent leveraged takeover is possible only because the debt will be backed by A1 Moody's rating of Dubai, one of the seven Emirates comprising the United Arab Emirates. The borrowing entity will be Thunder FZE (Free Zone Enterprise), an acquisition vehicle set up by DPW, with a 100 percent guarantee provided by PCFC. Some 30 international banks are expected to participate in the $6.5 billion acquisition, plus refinancing a $1.65 billion loan DPW raised last year. Debt issues are not foreign to Dubai - last month PCFC issued a separate two-year $3.5 billion Islamic bond, the largest Islamic bond ever raised.

DPW also appears wired into the Bush administration. Last month, George Bush nominated one of DPW's senior executives, David C. Sanborn, to serve as maritime administrator, an important transportation appointment reporting directly to Secretary of Transportation Norman Mineta. Mr. Sanford, a graduate of the U.S. Merchant Maritime Academy, joined DPW in 2005. Before being nominated to be maritime administrator, Mr. Sanford served as DPW's director of Operations for Europe and Latin America.

Dubai has been far from faultless in the War on Terrorism. The 9-11 Commission Report documents how al-Qaida and the 9-11 terrorists who flew the airplanes into the World Trade Center and the Pentagon used Dubai as a banking facility and a country of transit. Dubai continues to work actively with the radical religious clerics ruling Iran, serving both as a vacation home and a capital haven to many of the wealthy mullahs and their families, including former Prime Minister Hashemi-Rafsanjani, who is the first mullah to be considered a billionaire while the Iranian per capita GDP continues to be calculated at around $1,800.

By the end of 2006, Dubai calculates that some $300 billion will have been moved from Iran to Dubai by over 400,000 Iranians. Iranians who travel to Dubai for business are estimated to constitute 25 percent of Dubai's population. The Dubai Chamber of Commerce shows that more than 6,500 Iranian-owned companies are now registered in the UAE under Iranian nationality. Some 10,000 Iranian students live and study in Dubai. Some 20 percent of the investments in Dubai shopping centers are now registered under Iranian names. In one week, at the end of June 2005, Iranians bought 31 percent of the luxurious villas of Al Hamra tourism-residential complex, located in Ras Al Khaimah, north of Dubai. The UAE is a popular tourist location for those Iranians lucky enough to have the funds to travel, with many visiting several times a year, spending considerable sums on shopping, hotels and the beach.

With Iran defiantly pursuing a nuclear program believed to be building weapons, and with Dubai having established financial connections with al-Qaida operatives, is President Bush having another "Harriet Miers moment" in allowing Dubai Ports World to gain operations control over American ports in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia?



Maybe the explanation is that President Bush takes seriously the idea of establishing a Bush-Clinton dynasty and he just seized the opportunity to allow Hillary Clinton to move to the center, leading with Senate hawks who see the Bush administration decision as risking our national security by turning over control of our ports to an Arab Islamic state that is obviously too comfortable with terrorists.

In "Atomic Iran," I specifically chose the scenario that terror sleeper cells in America would seek to obtain an improvised nuclear device manufactured in Iran and shipped into the United States in a container delivered to a New York area port. The Bush administration has been lax in patrolling our porous border with Mexico. Evidently, the Bush administration proposes to deal with our ports with a similar lack of concern that we are turning over operations of key American ports to what amounts to the government of Dubai. The DPW deal is giving me serious concern that we might see yet another prediction I made in "Atomic Iran" become reality.
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This hasn't made any sense to me since I first heard about it. First of all, I had no idea our ports were managed by private companies. Here, we have the Port of Seattle, which is run by commissioners that we elect.

What's the practice in other cities?