Dubai port deal generates legislative conflict

Sarah Lightman
Staff Writer

For the first time in President George W. Bush's time in office, he is threatening to veto an upcoming bill. Legislature is attempting to pass a bill which would block a deal for a state-owned company in Dubai to take over the management of port terminals in several U.S. cities.

Republican Bill Frist, the Senate majority leader, and Republican J. Dennis Hastert have made it known that they do not agree with this deal. They feel that further review is necessary to ensure that terrorists could not use the American ports to bring weapons into the country.

However, Bush feels that these objections may be based on a bias against a company from the Middle East. The president noted that the company in question was an ally of the United States in fighting terrorism.

"If there is any chance that this transaction would jeopardize the security of the United States, it would not go forward," Bush said.

Among several Democrats who oppose the deal, White House officials were surprised to find that many prominent Republicans also joined in their opposition.

Mayor Michael R. Bloomberg of New York is asking the government to stop the deal from closing as scheduled.

"We have not received the necessary assurances regarding security concerns," Bloomberg said in a letter to Bush.

Bloomberg and New York's two Democratic senators are calling for a 45-day investigation of the deal under a federal law that governs the review of foreign investments.

Representatives from the White House said they consider this deal routine because several foreign firms run major terminals in the United States and have for many years. But that statement was not good enough for Senator Charles E. Schumer.

"I don't think China or Britain or many of the others have the nexus with terrorism that Dubai has. Schumer said "What kind of controls do they have to prevent infiltration?"

Some believe Dubai's record is not exactly clean. Two of the hijackers in the Sept. 11 attacks came from the United Arab Emirates and laundered some of their money through its banking system. Opponents of the deal refer to these circumstances as support for their concerns.

Pennsylvania Governor Ed Rendell, a democrat, is concerned for his state's safety if the port deal would go through, since one of the major ports is located in Philadelphia. Rendell warned that Pennsylvania may have to take matters into its own hands if the deal to sell a port terminal to a company based out of the United Arab Emirates moves forward.

"The Port of Philadelphia is a critical infrastructure," Rendell said. "I believe securing our borders is vital and we must avoid taking any actions that degrade port security."

While the opposition and push for a bill blocking the agreement continue to wage on, Dubai Ports World has taken steps in agreement to tighten security of things coming into the United States.

The company volunteered to allow goods headed to the United States to be screened before they left a port it operates at its home base in Dubai.

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