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Port Authority

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Earlier this week Dubai Ports World, based in the United Arab Emirates, announced that it would purchase London-based Peninsular and Oriental Steam Navigation Co. (P&O). The deal gives DPW control over commercial operations at six US shipping terminals- New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

This fact has caused a small but growing number of US lawmakers to press the White House and the Treasury Department to review their decision on the grounds that Arab control over American ports could jeopardize national security.

According to the LA Times, this list of lawmakers includes Senators Chuck Schumer (D-NY), Tom Coburn (R-OK), Frank R. Lautenberg (D-NJ) and Christopher J. Dodd (D-CT), and Representatives. Mark Foley (R-FL), Vito J. Fossella (R-NY) and Christopher Shays (R-CT). The Financial Times includes Richard Shelby (R- AL). The Daily Press of Hampton Roads, VA reports that Senator George Allen is opposed. As of Friday morning. Reuters is reporting that Senator's Hillary Clinton (D-NY) and Robert Menendez (D-NJ) are now on board as against the DPW-P&O deal. Here's summary of their objections and positions:

Senator Shelby: In a letter to Treasury secretary John Snow, Senator Richard Shelby, an influential Alabama Republican, stopped short of calling for the deal to be blocked, but said the transaction merited further scrutiny, potentially raising complications for DP World’s bid. Mr Shelby is expected to call for a hearing to discuss the issue in coming weeks.

Sen Schumer: In a separate letter to Mr Snow, New York Senator Chuck Schumer and others said US ports were “the most vulnerable targets for terrorist attack”. They questioned whether DP World, which is owned and controlled by Dubai, should be allowed to take over P&O, charging that Dubai was a “key transfer point” for shipments of nuclear components bound for Iran, North Korea and Libya. ... “After the 9/11 attacks, your department complained of a lack of co-operation by the UAE and other Arab countries as the US was trying to track down Osama bin Laden’s bank accounts,” the letter stipulated. ... "America's busiest ports are vital to our economy and to the international economy, and that is why they remain top terrorist targets," Schumer said. "Just as we would not outsource military operations or law enforcement duties, we should be very careful before we outsource such sensitive homeland security duties."

Sen George Allen (R- VA): "While the United Arab Emirates has been a valuable ally in the War on Terror, there have been past circumstances that should raise concern," Allen wrote to Treasury Secretary John W. Snow, who is overseeing a group that already has approved the purchase. The UAE city of Dubai, Allen said, "has been a transfer point in the proliferation of nuclear components." Also, he added, "the September 11th terrorists spent time in UAE and utilized its banking system in carrying out their attacks."

Senators Robert Menendez (D-NJ) and Hillary Clinton (D-NY) said they would offer a measure to ban companies owned or controlled by foreign governments from acquiring U.S. port operations. "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," Menendez said in a statement. ... "I will be working with Senator Menendez to introduce legislation that will prohibit the sale of ports to foreign governments," Clinton said in a statement.

Rep Fosella: Fossella 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."

Sen Chris Dodd (D-CT): ''Our ports are major potential terrorist targets," said Senator Christopher Dodd, a Democrat of Connecticut. ''I strongly urge the administration to thoroughly investigate this acquisition."

Sen. Tom Coburn (R-OK): ''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."

Rep Peter King (R-NY)
, House Homeland Security Committee Chairman, speaking of the Committee on Foreign Investment in the United States (CFIUS) stated that "I am not convinced that the system that's used is satisfactory in a post-9/11 world. They just seem to do an analysis of what's known about the company -- is there anything known showing that they're a threat?" said King, who met with Baker and other administration officials yesterday. "To me, much more of an investigation is required. If someone was nominated for a sub-Cabinet post in this administration, they would get far more scrutiny than this company, which will be running major ports in this country."

Though it is staunchly defending the deal, the Bush Administration seems to have been caught off-guard both by resistance to the DPW take-over, if not by the bi-partisan nature of it:

Taken aback by the uproar, administration officials defended approval of the deal by the Committee on Foreign Investment in the United States (CFIUS), a panel with representatives from 12 U.S. agencies that reviews foreign takeovers of U.S. companies or possible risks to national security.

"This company will be subject to any U.S. laws that apply to port security, and will be obliged to have a port security plan that we will review," Stewart A. Baker, the assistant secretary for policy at the Department of Homeland Security, said in a phone interview. "So if there's a falloff in compliance on security here in the United States, we're not completely lacking in ability to respond to that."

"We have a relationship with this company because they have been a participant in some of our cargo and port security measures," Baker said. "Remember, our interest in port security extends well beyond the United States. If we discover weapons of mass destruction inside a U.S. port, we've already lost. So we do a lot of screening abroad, and our general experience with this company has been positive."

Commentary

A few important themese emerge here. Recall that the the six cities where ports are to be controlled by DPW are New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. No surprise then that lawmakers whose states are home to or neighbor those cities are leading the charge.

Also worthy of note is Sen. Schumer's lame attempt to resurrect the even lamer anti-outsourcing rhetoric that faired so poorly in Kerry's 2004 failed presidential bid. I have a feeling it won't serve the Democratic party any better in this situation, not will it help underscore the important issues surrounding this deal.

One more thing about the outsourcing rhetoric I might add is this: I know who is partial to it and who thinks their interests are served by it the International Longshore and Warehouse Union...

John Kerry, ILWU’s choice for president: Kerry is very concerned about the outsourcing of American jobs. He has vowed to stop tax breaks to companies that send American jobs overseas and create tax incentives to keep good jobs at home. Kerry also advocates denying government contracts to companies that move offshore. The American labor movement, and the ILWU in particular, cannot survive another four years of George W. Bush and his band of megalomaniac advisors.

...and the AFL-CIO affiliated International Longshoremen's Association who is on record with its concerns about the impact of port security issues on its membership:

House Debates Port Security Issues (Summer 2002): While the ILA is fully on board in support of security measures to protect our ports against attacks by terrorists, we continue to insist those actions not infringe upon the individual liberties and privacy of our members.

As Fox News notes, longshore unions are cleary worried about the prospect of the DPW managing these six ports, but not necessarily for reasons related to national security:

" (Stephen) Flynn (maritime security analyst at New York-based Council on Foreign Relations) and others said even under foreign control, U.S. ports will continue to be run by unionized American employees. "You're not going have a bunch of UAE citizens working the docks," Flynn said. "They're longshoremen, vested in high-paying jobs. Most of them are Archie Bunker-kind of Americans."

Well Flynn has got that one right. There is no way in the world Archie Bunker has to worry about losing his job to Abu Bakr, Abu Bilal or Abu Anybody. One thing you quickly learn when moving to the UAE is that the nationals don't do the tough manual labor. What Archie Bunker might have to worry about is that DPW might not be as easy to negotiate with when contract renewal time comes around. But that's the nature of business and for that the unions have many options at their disposal

All this leaves me with the distinct impression that the US lawmakers aren't aware of how dependable an ally they have in the UAE. Call me cynical but my hunch is that the all-of-a-sudden concern about an Arab company running the ports is less out of bi-partisan concern over national security and more motivated by other factors. On the left-side we have lawmakers beholden to longshore unions and looking, as always, to score cheap political points against the President.

On the right are lawmakers holding grudges about who did and didn't do what in the period before and immediately after 9/11, who discount to heavily the current cooperation that is now being rendered, and who are, perhaps, a bit unnerved about the Mohammed cartoon-Danish boycott controversy. What both groups should recognize is that this hardly the time to be decreasing economic ties with any of the few friends we have in the region and putting at risk the prospect of further political and economic cooperation at time when it is most needed.

My other hunch is that someone is going to explain it all to the lawmakers pretty soon and that this story will blow over rather quickly. This is not the stuff of which a "gritty film-noir" or even a Michael Moore documentary is made.

Update I: One of my American University of Sharjah students, Nazia Moghul, who was raised in Dubai, has some thoughts about the P&O deal. You can find them on here blog, A Guiding Star.

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Comments

Cartoon Sparks Union Riots

A Lot More Port Stuff at Limbaugh Site

And Here

Down at the bottom of both pages are lots of links, also more on his home page.

Starling,
This is from yesterday.
Check later today, Rush has lots of new stuff.
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http://www.rushlimbaugh.com/home/daily/site_022106/content/america_s_anchorman.guest.html

Maybe Mark Foley was influenced a bit by these guys!
---
A Miami company, Continental Stevedoring & Terminals Inc., has filed suit in a Florida court challenging the deal. A subsidiary of Eller & Company Inc., the Miami company maintains it the suit disclosed Saturday evening that it will become an "involuntary partner" with Dubai's government under the sale. (Related story: Miami firm protests deal)

I would give the benefit of the doubt for good intentions to Mark Foley and Tom Coburn, whether their concerns are valid or not I don't know.
Leave it to the good Doctor to be more concise and to the point than his lesser educated blowhards!
---
Sen. Tom Coburn (R-OK):
''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."

Evidently they also do NOT recognize Israel.

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