http://www.dailykos.com/story/2006/2/17/104325/112
 

Bush Administration Sells Port Security To Highest Foreign Bidder 


by georgia10 <http://georgia10.dailykos.com/>  


Fri Feb 17, 2006 at 08:43:25 AM PDT


The Bush administration has granted access to
<http://www.nytimes.com/2006/02/17/nyregion/17ports.html> our most important
ports to the government of the United Arab Emirates:


The Bush administration dismissed the security concerns of local officials
yesterday and restated its approval of a deal that will give a company based
in Dubai a major role in operating ports in and around New York City. 



Representatives of the White House and the Treasury Department said they had
given their approval for Dubai Ports World to do business in the United
States after a rigorous review. The decision, they said, was final.

Dubai Ports World is buying the British company that currently operates the
cruise-ship terminal on the West Side of Manhattan, one of the biggest cargo
terminals in New York Harbor, and terminals in Philadelphia, Baltimore and
other big ports.

Dubai Ports World is controlled by the UAE royal family. The decision to
grant the $6.8 billion sale to Dubai was made by the
<http://www.treas.gov/offices/international-affairs/exon-florio/> Committee
on Foreign Investments in the United States .  Who sits on the committee?
The Director of the Office of Science and Technology Policy, the Assistant
to the President for National Security Affairs, the Assistant to the
President for Economic Policy, the Department of Homeland Security, the
Secretaries of State, Defense, and Commerce, the Attorney General, the
Director of the Office of Management and Budget, the U.S. Trade
Representative, and the Chairman of the Council of Economic Advisers. The
Committee is chaired by the Secretary of the Treasury.

So Gonzales, Rice, Rumsfeld, Snow, and an other Bush administration
officials conducted a security review and decided--unanimously--that the
sale did not post a national security threat.  How thorough was their
investigation? They did not conduct background checks on senior managers of
the company, nor did they ask how the company screens its own employees. You
know, just in case a terrorist wants to infiltrate the company that now has
unprecedented and unfettered access to our ports. More below...

*       :: 

*       

Outrage at the deal is bipartisan
<http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=FT&Date=
20060216&ID=5515390> :


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. 



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.

And from yesterday's
<http://www.whitehouse.gov/news/releases/2006/02/20060216-1.html> press
briefing:


Les. 



Q Scott, I have a two-part. The government's Committee on Foreign Investment
in the United States has approved a deal that will put six major ports in
the United States under the control of a state-sponsored company based in
Dubai, the United Arab Emirates. And my question: Knowing, as we do, that
the Arab Emirate was tied in many ways to the 9/11 hijackers and their
deeds, and knowing the critical nature of port security and protecting the
nation, will the President step in and stop this deal from going into effect
March 2nd?

MR. McCLELLAN: Well, my understanding, Les, is that this went through the
national security review process under CFIUS, at the Department of Treasury.
That is the agency that is responsible for overseeing such matters. And this
includes a number of national security agencies -- the Department of
Homeland Security, the Department of Defense, the Justice, among others, and
there is a rigorous review that goes on for proposed foreign investments for
national security concerns. And in terms of specifics relating to this,
Treasury is the chair of this and you should direct those questions to
Treasury. 

That question, by the way, wasn't asked by Helen Thomas or David Gregory. It
was posed by Les Kinsolving, right-wing reporter for WorldNutDaily.  

Republicans feel betrayed that their President would make such a foolish
national security move. Even Rick Santorum (R-PA) has sent
<http://santorum.senate.gov/public/index.cfm?FuseAction=PressOffice.View&Con
tentRecord_id=1681&Region_id=0&Issue_id=0> a letter to the President
protesting the deal.  Also, Republican
<http://www.americanchronicle.com/articles/viewArticle.asp?articleID=5908>
Congressman Mark Foley had this to day:


"Six of our largest commercial ports are being handed over to a country that
is seeking to be Iran's free trade partner and has been linked to the
funding and planning of 9/11. If our ports are the most vulnerable targets
for terrorism and if we are at war, as the President says, we should be
overly critical of handing over management of our ports to any foreign
countries, post 9/11. Instead, this was done in the dead of night."

Besides Schumer, (who was quoted above and who sent a letter to Treasury
Secretary Snowe), other Democrats are shocked at the deal--and are taking
<http://www.forbes.com/entrepreneurs/feeds/ap/2006/02/17/ap2534556.html>
action:


Sen. Robert Menendez, D-N.J., told The Associated Press he will introduce
legislation to prohibit companies owned or controlled by foreign governments
from running port operations in the United States. Menendez said his
proposal would effectively block state-owned Dubai Ports World from
realizing gains from its purchase of London-based Peninsular and Oriental
Steam Navigation Co. [...] 



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. 

So conservatives, moderates, liberals, and basically everyone on the
political spectrum opposes this deal. About the only people who like the
deal are those who enjoy walking
<http://www.whitehouse.gov/news/releases/2005/04/images/20050425-8_hw9v0295j
asjpg-1-515h.html> in wildflower meadows hand in hand with super-rich royal
families whose countries may incubate terrorists. 

Ahem.

The bipartisan concern here is that we are handing the key to our nation's
security to just such a foreign government. Not to a private corporation,
but to a company controlled by a foreign state. No matter how good our
relations are with that country, how can we ever justify letting another
government control the security of our citizens?

Anthony R. Coscia, the chairman of the Port Authority of New York and New
Jersey, has repeatedly contacted the administration to get answers to his
concerns. The Bush administration has refused to respond. 



[Non-text portions of this message have been removed]



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