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Security of US in danger via seaports

 
 
Reply Tue 21 Feb, 2006 11:50 pm
Right-wing posturing from Congress on Arab firm's role at US portsBy Patrick Martin
22 February 2006

Congressional leaders of both parties are engaged in a cynical publicity stunt in their criticism of the Bush administration for approving the takeover of commercial operations at six Atlantic and Gulf Coast ports by a port management company owned by the government of Dubai, a Persian Gulf sheikdom that is part of the United Arab Emirates (UAE).

For Hillary Clinton and Charles Schumer, New York's two Democratic senators, as well as a dozen other senators, congressmen and governors of both parties, the campaign against the sale of port operations to Dubai provides a welcome opportunity to combine anti-Arab agitation with an attack on the Bush administration from the right. It gives a glimpse of the campaign the Democrats plan to wage in the 2006 congressional elections, avoiding as much as possible any identification with antiwar sentiment or the mass popular opposition to Bush's attacks on democratic rights.

The furor began February 10 when the British-owned Peninsula & Orient (P&O) company, the fourth largest port operator in the world, agreed to be acquired by Dubai Ports World (DP World), the port operator owned by Dubai. P&O currently manages most operations at the ports of New York, New Jersey, Philadelphia, Baltimore, Miami and New Orleans, which account for the majority of the cargo shipped into the eastern half of the United States.

DP World revealed that even before the successful takeover bid, it had consulted with the Bush administration and received approval from the Committee on Foreign Investment in the US (CFIUS), a secretive panel of 12 top US government officials that reviews foreign acquisitions of US properties from the standpoint of their impact on American national security.

There are perfectly legitimate grounds for questioning the unusually swift approval of the Dubai takeover of P&O. US Treasury Secretary John Snow, chairman of the CFIUS, has indirect business ties to the Gulf sheikdom, since his former company, the railroad giant CSX, sold its own port operations to DP World for $1.15 billion in 2004, the year after Snow left the company to join the Bush cabinet.

The revolving door goes the other way too: a top DP World executive, David Sanborn, manager of the company's European and Latin American operations, was named by Bush last month to head the US Maritime Administration, a major unit of the Department of Transportation.

But the Democrats are not focusing their objections to the deal on allegations of cronyism or Halliburton-like sweetheart arrangements among giant corporations. Their professed concern is that control of US port facilities by a company based in Dubai?-even though virtually the entire management and all of the work force will be American?-could undermine US security and facilitate ship-borne terrorist attacks against the United States.

At least one stevedoring company filed suit February 10 in federal court to block the takeover, maintaining that if DP World took over the six ports, the deal "may endanger the national security of the United States." In response, Kim Petersen, the executive director of the Maritime Security Council, which represents 70 percent of ocean shipping worldwide, told CNN that opposition to DP World "comes down to bigotry [against] Arabs."

Senator Robert Menendez, a New Jersey Democrat, announced he would introduce legislation to prohibit companies owned or controlled by foreign governments from running port operations in the United States. "We wouldn't turn the border patrol or the customs service over to a foreign government, and we can't afford to turn our ports over to one either," he declared.

At a press conference Tuesday in Washington, Senator Schumer could barely suppress a smirk as he declared that he opposed the takeover not because Dubai is an Arab country, but because it is a country linked to terrorism.

Schumer's avowals notwithstanding, the obvious subtext of the campaign against DP World is the equation of "Arab" with "terrorist."

It is true, as countless press accounts have now recalled, that two of the 19 hijackers on 9/11 were born in the United Arab Emirates, and that financial support to hijack leader Mohammed Atta was routed through banks in Dubai. But this means next to nothing, since Saudi Arabia, the principal US ally in the region, was home to 15 of the 19 hijackers, and Dubai has become the Persian Gulf's equivalent of Hong Kong, Geneva or New York?-serving as a regional banking center because the sheikdom lacks the oil resources of the Saudis, Kuwaitis or other of the sheikdoms that make up the UAE.

While Democrats like Schumer were the first to take up the anti-Dubai campaign, by Tuesday congressional Republicans and two Republican governors had followed suit. New York Governor George Pataki and Maryland Governor Bob Ehrlich (with jurisdiction over Baltimore), said they would seek to block the takeover using their executive authority.

Senate Majority Leader Bill Frist sent a letter to the White House objecting to the sale of P&O to Dubai and asking for a further investigation. He was seconded by Rick Santorum of Pennsylvania, the Republican widely considered to be the most endangered incumbent senator in the 2006 election. Santorum declared that Philadelphia had been designated a "strategic port" for the movement of military material and sent a letter to Bush urging him to block the sale.

Republican Senator Tom Coburn of Oklahoma, a Christian fundamentalist, noted that the UAE was one of three countries that had recognized the Taliban regime in Afghanistan. "Handing the keys to US strategic ports to a regime that recognized the Taliban is not a sound next step in our war against terror," he declared, tactfully refraining from naming the other two countries that had diplomatic relations with the Taliban: US allies Pakistan and Saudi Arabia.

Many House Republicans voiced similar protests, including several from the greater New York City area, as well as Thomas Reynolds of upstate New York, chairman of the National Republican Campaign Committee. The most vociferous opposition came from Congressman Peter King of Long Island, a Republican who is chairman of the House Homeland Security Committee. King called for an investigation into the hiring practices of DP World, asking "How are they going to guard against things like infiltration by Al Qaeda or someone else, how are they going to guard against corruption?"

In the face of this uproar from both parties, the Bush administration remained adamant that the transfer of the ports to the control of DP World would go ahead, and that the CFIUS had no power to make a second review of the takeover, as several congressmen have demanded. Bush himself defended the administration's approval of the deal, while Secretary of State Condoleezza Rice, who is scheduled to visit the UAE in the coming week, described one of the emirates, Abu Dhabi, as "a very good friend" of the United States.

Presidential communications director Dan Bartlett protested to CNN, "If you start deciding these issues in a guilt-by-association method, you will have a situation which has deep and harmful ramifications to the economic interests of this country." (This remark is quite extraordinary, given the Bush administration's penchant for smearing as an ally of the terrorists anyone who opposes the Iraq war and the buildup of state repression and spying at home.)

In part, Bush's stance reveals a reflexive opposition on the part of the White House to any attempt to impose restrictions on the actions of giant transnational corporations. There are legal concerns as well: The US government made no objection when the British-owned P&O took control the Atlantic and Gulf Coast ports, and discriminating against DP World because it is Arab-owned could well put the United States in violation of its obligations under World Trade Organization agreements, risking punitive sanctions against US exports?-to say nothing of the possible adverse reaction among Arab investors who have poured billions of petrodollars into the purchase of US Treasury securities.

The Bush administration, however, has routinely brushed off considerations of international law in areas of foreign policy which it considers vital, above all in the illegal invasion of Iraq, but also in its attitude to such agreements as the Kyoto Protocol on global warming, nuclear weapons treaties with Russia, anti-torture conventions, and the establishment of the International Criminal Court.

The conclusion that must be drawn is that in the Dubai takeover of the ports, as far as the White House is concerned, nothing very important is at stake. Bush & Co. see no reason to interfere with the everyday commercial motives which underlie the sale.

This posture only underscores the essentially bogus character of the "war on terror," which has become the touchstone of American politics, embraced uncritically by both parties and by the US media. This slogan is useful as a propaganda device to dupe the American people and justify military aggression in Iraq and elsewhere, as well as police state measures at home. But it means nothing at all in terms of taking actual precautionary measures to protect the American people against new terrorist attacks employing nuclear or other non-conventional weapons that could kill tens of thousands.

Since 9/11, for instance, the Bush administration has spent $18 billion on improvements in aviation security. But over the same period, the federal government spent only $560 million on security improvements at seaports, even though the volume of material flowing through seaports is far larger. Barely five percent of the cargo entering the United States by sea is subject to even the most cursory scanning with devices like radiation detectors.
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babsatamelia
 
  1  
Reply Wed 22 Feb, 2006 12:27 am
A toast to George Bush - may he rot in hell AND may his
armpits be infested with the fleas of 1000 camels. He's out of
office after this term, why should he give a damn what the
Americans think of him NOW?
0 Replies
 
pachelbel
 
  1  
Reply Wed 22 Feb, 2006 07:20 pm
Well, the article isn't so much about what Americans think of Bush (most don't think much of him, if polls count) - I think it's more to do with the Bush Adm phony 'war on terror'.

If they were serious they'd have spent $$ on seaport security, given that "material flowing through seaports is far larger" than what comes through airports.
0 Replies
 
pachelbel
 
  1  
Reply Wed 22 Feb, 2006 09:46 pm
Dubai Company Set to Run U.S. Ports Has Ties to Administration by Michael McAuliff

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 department 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 who 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 Sept. 11 hijackers.

"The more you look at this deal, the more the deal is called into question," said Sen. Charles 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-N.Y., said, but insisted that stopping the deal was more important.

The New York Daily News has learned that lawmakers also want to know if a detailed 45-day investigation 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 closer look.

"The most important thing is for someone to explain how this is consistent with our national security," Fossella said.
© 2006 KRT Wire and wire service sources

And the phony 'war on terrorism' -or the war against neo-globalists, continues....... Confused
0 Replies
 
pachelbel
 
  1  
Reply Thu 23 Feb, 2006 01:24 pm
WASHINGTON (AP) - President George W. Bush sought Thursday to calm an uproar over a state-owned company in the United Arab Emirates taking over significant operations at six major U.S. ports, saying "people don't need to worry about security."

Under secret conditions of the agreement with the administration, the company promised to co-operate with U.S. investigations as a condition of the $6.8-billion US deal, according to documents obtained by The Associated Press.

However, the U.S. government chose not to impose other, routine restrictions.

"The more people learn about the transaction that has been scrutinized and approved by my government, the more they'll be comforted that our ports will be secure," Bush told reporters Thursday at the end of a cabinet meeting.

Bush said he was struck by the fact that people were not concerned about port security when a British company was running the port operation, but they felt differently about an Arab company at the helm. He said the United Arab Emirates was a valuable partner in the U.S. war on terror.

Critics in Congress have complained that London-based Peninsular and Oriental Steam Navigation Co., which previously operated at those ports, is a publicly traded company while Dubai Ports World is effectively controlled by the government there.

The deal puts Dubai Ports in charge of major terminal operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

Senator Robert Menendez (D-N.J.) and Senator Hillary Rodham Clinton (D-N.Y.) have said they will introduce legislation to prohibit companies owned or controlled by foreign governments from running port operations in the United States.

Bush said his administration would continue talks with members of Congress - Republicans and Democrats alike - who have rebelled against the takeover. He said the briefings were "bringing a sense of calm to this issue."

"This wouldn't be going forward if we weren't certain our ports would be secure," the president said.

In approving the purchase, the administration chose not to require Dubai Ports to keep copies of its business records on U.S. soil, where they would be subject to orders by American courts. It also did not require the company to designate an American citizen to accommodate requests by the government.

Outside legal experts said such obligations are routinely attached to U.S. approvals of foreign sales in other industries.

Dubai Ports agreed to give up records on demand about "foreign operational direction" of its business at the U.S. ports, according to the documents. Those records broadly include details about the design, maintenance or operation of ports and equipment. It also pledged to continue participating in programs to stop smuggling and detect illegal shipments of nuclear materials.

"They're not lax but they're not draconian," said James Lewis, a former U.S. official who worked on such agreements in the past.

The conditions over the sale were detailed in U.S. documents marked "confidential." Such records are regularly guarded as trade secrets, and it is highly unusual for them to be made public.

Representative Peter King (news, bio, voting record) of New York, Republican chairman of the House homeland security committee, said the conditions show evidence the Bush administration was concerned about security.

"(However) There is a very serious question as to why the records are not going to be maintained on American soil subject to American jurisdiction," King said.

Another critic, Senator Charles Schumer (D-N.Y) added: "These new revelations ask more questions than they answer."

Dubai Ports is lining up powerful supporters to persuade skeptical U.S. legislators the deal is a good idea. Even before the controversy erupted, the company had hired Bob Dole's law and lobbying firm, Alston & Bird LLC, to win approval for the deal. The Albright Group, led by former secretary of state Madeline Albright, also has been trying to speak with members of Congress.

Bush has pledged to veto any bill Congress might approve to block the agreement, but some legislators said they still were determined to block it.

Dubai Port's top American executive, chief operating officer Edward Bilkey, said he will work in Washington to persuade skeptical legislators to endorse the deal; several Senate oversight hearings already are scheduled.

"We're disappointed," Bilkey told The AP in an interview. "We're going to do our best to persuade them that they jumped the gun. The UAE is a very solid friend, as President Bush has said."

The White House has said Bush did not know about the agreement until recently. The AP first reported U.S. approval of the sale to Dubai Ports on Feb. 11, and many members of Congress have said they learned about it from that news report.

"I think somebody dropped the ball," said Representative Vito Fossella (news, bio, voting record) (R-N.Y). "Information should have flowed more freely and more quickly up into the White House. I think it has been mishandled in terms of coming forward with adequate information."
0 Replies
 
pachelbel
 
  1  
Reply Thu 23 Feb, 2006 08:52 pm
Oh, I see, silly me...it's all about MONEY. Should have figured that the US would place MONEY over security Smile

Published on Thursday, February 23, 2006 by Inter Press Service
UAE, Jolted by Port Deal, Is Key Western Arms Buyer
by Thalif Deen

UNITED NATIONS - The United Arab Emirates (UAE), the center of a growing controversy over its proposed management of U.S. port terminals, is one of the world's most prolific arms buyers and a multi-billion-dollar military market both for the United States and Western Europe.

The energy-rich Persian Gulf nation is currently taking delivery of about 8.4 billion dollars worth of military equipment, mostly state-of-the-art fighter aircraft, ordered from the United States (6.4 billion) and France (two billion) over the last five years.

The delivery of 80 U.S.-built F-16 E/F fighter planes -- described as one of the biggest single arms packages to a Middle Eastern nation and finalized back in March 2000 -- is to be completed only in 2007.

U.S. President George W. Bush's threat to veto any attempts to block last week's deal permitting a state-owned UAE company to take over the management of six U.S. port terminals has underlined the significance of the political and military relationship between the two countries.

Despite growing bipartisan opposition to the deal -- mostly prompted by a fear-psychosis that U.S. ports should not be managed by a state-owned Arab company because of possible terrorist infiltration -- Bush says the UAE has been a strong U.S. ally in the fight against global terrorism.

He also sees no risk in a Middle Eastern company overseeing U.S. ports and shipping terminals despite potential terrorist threats.

But an equally significant fact in the longstanding bilateral relationship is that the UAE is a vibrant arms market not only for the United States but also its allies in Western Europe, particularly France and Britain.

"The UAE (arms) market is definitely important to the United States," says Tom Baranauskas, a senior Middle East analyst at the Connecticut-based Forecast International, a leading provider of defense market intelligence services.

"Just the order for 80 of the newest-generation F-16E/Fs" alone was a major buy from the United States, he said.

"Interestingly, there are already upgrades planned for these fighter planes even though they have not completed delivery," Baranauskas told IPS.

The upgrades and maintenance of the already delivered aircraft -- and proposed new arms purchases -- will have to be ensured only by a continued military relationship between the UAE and the United States.

But he also pointed out that the UAE military's procurement priorities are shifting, "and this shift may affect the U.S. competitiveness, and actually benefit Europeans more than the United States".

Besides French Mirage fighter planes, the UAE has also taken delivery of about 36 British Aerospace Hawk 100 trainer/ground attack aircraft, four warships from Germany, and two frigates from the Netherlands. Additionally, France has supplied about 400 battle tanks in a deal worth nearly 3.8 billion dollars.

With an armed force of only about 50,000 to 60,000 troops, the UAE is considered one of the world's best equipped militaries. A country which does not receive any U.S. military aid, the UAE pays hard currency for all its weapons purchases.

Projected orders for military equipment from the United States exceeded 650,000 dollars in 2005, with an anticipated increase to about 1.9 billion dollars in 2006, according to estimated figures released by the U.S. State Department in early February.

According to Forecast International, the UAE's military budget for 2006 is estimated at about 3.7 billion dollars, compared with 20.2 billion dollars by Saudi Arabia, the Middle Eastern nation with the largest single defence budget, followed by Israel (9.9 billion dollars), Iran (7.9 billion dollars) and Kuwait (4.9 billion dollars).

A country with the world's third largest oil reserves and the fifth largest gas reserves, the UAE has a per capita income of over 17,000 dollars, with oil accounting for 30 percent of gross domestic product (GDP) and 75 percent of national revenues.

The unprecedented rise in oil prices in world markets -- from about 12 dollars per barrel in 1998 to 65 dollars last week -- has increased the purchasing power of countries such as the UAE.

Baranauskas said that "looking at the UAE inventory of weapons, particularly fighter planes, it is quite obvious that the Emirates does rely heavily on the U.S. as a source".

But it is also obvious that the UAE does not "put all its eggs in one basket" as evidenced by the procurement of French and British weapons systems.

"If I had to hazard a guess on the potential impact of the current imbroglio, there will be increased interest on the part of the UAE military to move to further arms source diversification" -- and away from relying too heavily on the United States.

"You could already see some UAE unhappiness over a failed deal to buy Hawkeye airborne early warning aircraft due to the U.S. refusal to fully transfer Link-16 secure communications technology," he added.

The Europeans traditionally have been more willing to sell equipment without strictures, and well-equipped militaries with the wherewithal to buy high-tech equipment are not going to settle for systems that cannot be used to their full capabilities because the U.S. refuses to provide the full-up version, Baranauskas said.

"Yet, Israel usually gets such full-up versions. The double-standard here is noted and duly filed away in memory, to possibly rebound in a later competition," he added.
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