Thoughts on Port's Aquisition?

[kite]

TweetWhite House: Bush Didn't Know About Port Deal

Wednesday, February 22, 2006



WASHINGTON — President Bush was unaware that a controversial deal to sell shipping operations at six major U.S. seaports to a United Arab Emirates-owned firm was in the works until it was approved by his administration, the White House said Wednesday.

After Bush repeatedly defended the deal in recent days and threatened to use his veto power against any congressional legislation aimed at stalling it, the administration also said that it should have briefed Congress sooner about the transaction, which has triggered a major political backlash among both Republicans and Democrats.

"He became aware of it over the last several days," White House spokesman Scott McClellan told reporters Wednesday. Asked if Bush did not know about it until it was a done deal, McClellan said, "That's correct."

"The president made sure to check with all the Cabinet secretaries that are part of this process, or whose agencies or departments are part of this process," the spokesman said. "He made sure to check with them — even after this got more attention in the press, to make sure that they were comfortable with the decision that was made."

"And every one of the Cabinet secretaries expressed that they were comfortable with this transaction being approved," he said.

The Senate Armed Services Committee will get a briefing from Defense Department officials on Thursday afternoon about the decision by a 12-member government panel to approve the sale of London-based Peninsular and Oriental Steam Navigation Co., which runs commercial operations at the six U.S. ports, to Dubai Ports World, a company owned by the United Arab Emirates.

In announcing the briefing, Committee Chairman John Warner, R-Va., said Wednesday he met with Defense Secretary Donald Rumsfeld, Deputy Secretary Gordon England, and Joint Chiefs of Staff Chairman Gen. Peter Pace at the Department of Defense a day earlier to discuss DP World's acquisition of P&O.

Warner said that while it's important to ensure that any foreign acquisition doesn't threaten U.S. national security, "we must also recognize the importance of making fair and objective decisions in working with our allies, especially those which are actively supporting the coalition of nations engaged in fighting the global War on Terror."

Warner said the UAE "has played a key role" in support of the War on Terror by providing logistical assistance to the U.S. Armed Forces in Afghanistan and Iraq, particularly through docking support for naval ships and providing airfields for the U.S. Air Force.

Warner's comments come after the White House has gone on the offensive in support of the pending sale, which will lead to DP World's owning the contract for operations in New York, New Jersey, New Orleans, Baltimore, Philadelphia and Miami.

On Tuesday, President Bush said objections to the deal are unfair, and DP World, the 7th largest international port operator in the world, deserves to be judged by the same rules as the British-owned P&O.

"I think it sends a terrible signal to friends around the world that it's OK for a company from one country to manage the port, but not a country that plays by the rules and has got a good track record from another part of the world can't manage the port," Bush said.

Bush said he's not sure about the need for congressional briefings on a company whose record is well established and who he called an ally in the War on Terror.

"I can understand why some in Congress have raised questions about whether or not our country will be less secure as a result of this transaction. But they need to know that our government has looked at this issue, and looked at it carefully," he said.

Speaking to reporters on Wednesday, Treasury Secretary John Snow said failing to let the transaction go through would send a terrible message overseas.

"The implications of failing to approve this would be to tell the world that investments in the United States from certain parts of the world aren't welcome," Snow said following a speech in Connecticut to a fuel cell manufacturer.

Presidential adviser Dan Bartlett said that security for the ports will remain with the United States.

"The physical security of the ports is at the charge of the Coast Guard. The actual cargo that comes in on the ships, is ... charged to the United States Customs Service. So it's critically important for America to understand that doesn't change — not today, not tomorrow, not next week, not six months from now. They are in charge of the security of our ports," Bartlett said.

"The country in question has been a strong partner in the War on Terror. They are helping us cut of financing. They are working side by side with military. They are sharing intelligence. If we are going to win this ... we have to be adding partners in the Middle East, not subtracting," he added.

Dennis Rochford, president of Maritime Exchange for Delaware River and Bay, told FOX News that DP World, like P&O, would function as terminal operators or stevedoring companies. They load or offload cargo. They are not responsible for port security. As a business or a vendor, they must operate by security rules already in place and must comply with port facility security plans submitted to, approved and enforced by the Coast Guard.

"If you have a problem with port security as it is, and think the regulations should be changed, then you should take it up with the entire maritime system. But using this company as a scapegoat is pushing the envelope," he said.

Rochford argued that DP World is "extremely well-respected" internationally for its operations, and if the United States relied on American ships and port companies to run the shipping industry, the ports would shut down.

"2,700 ships come up the Delaware River each year; 2,500 are flying foreign flags," he said, explaining that the United States dropped out of shipping operations by the 1970s as international consolidations increased.

Strength in Opposition

To assuage concerns, the administration has disclosed some assurances it negotiated with Dubai Ports. It required mandatory participation in U.S. security programs to stop smuggling and detect illegal shipments of nuclear materials; roughly 33 other port companies participate in these voluntarily. The Coast Guard also said it was nearly finished inspecting Dubai Ports' facilities in the United States.

A senior executive from Dubai Ports World pledged the company would agree to whatever security precautions the U.S. government demanded to salvage the deal. Chief operating officer Edward "Ted" H. Bilkey promised Dubai Ports "will fully cooperate in putting into place whatever is necessary to protect the terminals."

Bush on Tuesday brushed aside objections by House and Senate leaders, both Democrat and Republican, that the $6.8 billion deal could raise the risk of terrorism at U.S. ports or allow terrorists to slip into the country unnoticed. He said he will object to any legislation that is offered to stop the deal.

"There's a mandated process we go through. ... They ought to listen to what I have to say to this. I'll deal with it with a veto," Bush told reporters after an unusual decision to call media aboard Air Force One to the airplane's conference room.

But the opponents of the sale say they can count enough votes in Congress to override a veto.

"I will fight harder than ever for this legislation, and if it is vetoed I will fight as hard as I can to override it," said Rep. Pete King, R-N.Y., chairman of the Homeland Security Committee. King and Democratic Sen. Charles Schumer of New York said they will introduce emergency legislation to suspend the ports deal.

Another Democrat, Sen. Bob Menendez of New Jersey, urged his colleagues to force Bush to wield his veto, which Bush — in his sixth year in office — has never done. "We should really test the resolve of the president on this one because what we're really doing is securing the safety of our people."

Menendez added that the UAE may be an ally now, but that doesn't mean their support is guaranteed.

"The administration says that the United Arab Emirates is an ally. Fine. But we also supported Saddam Hussein at one time and the reality is that it became one of our biggest nightmares," he told FOX News.

But Sen. Joseph Biden, D-Del., said the bipartisan opposition to the deal indicated "a lack of confidence in the administration" on both sides. "Sure, we have to link up with our Arab friends but ... we want to see and those in Congress want to know what ... safeguards are built in," Biden said on ABC's "Good Morning America."

In a break from most lawmakers, Sen. John McCain, R-Ariz., said the public and Congress should not rush to judgment.

"The president's leadership has earned our trust in the War on Terror, and surely his administration deserves the presumption that they would not sell our security short. Dubai has cooperated with us in the war and deserves to be treated respectfully," McCain said, adding that due diligence is necessary, but a conclusion about the sanctity of the deal shouldn't be reached before lawmakers have all the pertinent facts.

"Until then, all we can offer is heat and little light to the discussion," McCain said.

Lawmakers from both parties have noted that some of the Sept. 11 hijackers used the United Arab Emirates as an operational and financial base. In addition, critics contend the UAE was an important transfer point for shipments of smuggled nuclear components sent to Iran, North Korea and Libya by a Pakistani scientist.

CFIUS approved the sale last Monday and Bush has until March 2 to decide whether to reject it. Without action, the deal will go into effect automatically. Lawmakers have asked him to delay approval until the multi-agency task force can take a closer look at the sale.

CFIUS is headed by Treasury Secretary John Snow and comprised of members of the departments of State, Justice, Commerce, Defense and Homeland Security reviewed the transaction and said it posed no national security threat.

On Wednesday, Sen. John Kerry, D-Mass., wrote Snow asking him to disclose how CFIUS concluded that approval should be granted, suggesting that CFIUS "approved the sale as expeditiously as possible, without even using the additional 45 day investigation process that was clearly warranted under the circumstances."

Kerry also said that ties between the Bush administration and DP World raise suspicions about the basis for approval. For instance, CSX rail corporation, of which Snow served as chief executive officer, sold its port operations to DP World in 2004. Moreover, David Sanborn, the president's nominee to be head of the U.S. Maritime Administration headed DP World's operations for Latin America and Europe.

"In light of these connections, Congress needs to learn more about the relationship between CFIUS members and DP, and whether Administration officials could have unduly influenced CFIUS's approval process," Kerry wrote.

FOX News' Trish Turner and Kelly Wright and The Associated Press contributed to this report.

[daved150]

TweetSPEECHLESS....

[supasaiyan99]

TweetDoesn't suprise me!

[solidground]

Tweetthey all work together (nwo)..not the least bit suprised

[trip]

Tweetat first I was enraged and mystified

thinking it through, I was calmed somewhat

then I thought bush has it hard world wide, yes we want our national companies to come into your place and buy your assets and do biz, yet, when you come here even if you comply with all laws and standards we might say, bugger off

so, that's seeing it through the world's eys, not an american

in summary 100 times more complex than it looks on surface, and probably no right or wrong answers

pretty sure a month or two from now it will be only a whisper though

[kite]

TweetAnd in a few years, freedom will be only a whisper as well.

[trip]

Tweetlol, doubt that one kite

democracy freedom has been definitely shown to be the most effective form of govt throughout history

third world countries have been moving towards democracies for decades

the more information is dispersed through the internet, television etc., the stronger it becomes

yes, all good things can be used for bad, so yeah terrorists use inet also

russia and the berline wall fell because of television and radio free europe and the wide dispersement of idea's and books and knowledge

i don't think freedom will die any time soon, a fight or two yeah

[kite]

TweetI don't know, I think it depends on future presidents. If things keep going the way that they are, our freedoms will be slowly stripped away in the name of Homeland Security.

[Merc]

Tweetdemocracy seems to implode when the wrong leaders are put into place.

[supasaiyan99]

Tweet

democracy seems to implode when the wrong leaders are put into place.

True!

[trip]

Tweet

democracy seems to implode when the wrong leaders are put into place.

can you sight some examples?

thanks

[trip]

Tweetlet me try a different take here

world politics and events are really no different than personal goals for bodybuilding

think of your own training and goals and what is has taken to get there, fall back, recoup and go on further, fall back further, get up off the ground and finally get it all together

the history of man can be summed up in one word: PROGRESS

Which is supported by FACTS, ie, just check out life expectancy

Now while we are training increasing our nutrition if we freaked out about every single gram of protein, every darned rep, etc. etc. etc., and I mean freak out, like hey we did are best and oh my god the scale is the same, or cutting hard as hell and the scale has not budged in two weeks

So, in the short term you can get freaked out over every little thing, yet, in the long term if you're eating right, training right, and resting right it all adds up to progress, and big progress if you stick to the game plan for years


Here's are choices today, Democracy or Monarchy, Despot, Communism, etc.

Democracy:

YOU get to choose where you will work
YOu get to negotiate you're worth by how much you are paid
YOU get to choose where you will live
YOU get to choose who you will vote for

And then at the end of the week

YOU get to walk into any store and BUY whatever you want to fullfill your hearts desire

All other forms:

I choose what you will study
I choose what you will be paid
I choose where you will work
I choose that you're vote has already been cast, for me of course, lol

and the end of the week

I give you coupons
I choose which store you can use those coupons at
I choose what coupons can be redeemed for

at the end of the night: I vow and make a promise to you that I have your best interest and the interest of all others, and if you trust me, I will never let you down

at the end of the night in a democracy: You lay your head down knowing there is no doubt you have your own best interest at heart


Now, if I had a bunch of folks that didn't like how I was running their lifes, I would get out the playbook on what play to run when. I open the playbook and by gosh each page is the same, 100% exactly the same. All I have to do is get up and make a speech and make YOU FEEL FEAR, and if I can do that you will be too scared to change anything, and we will keep the status quo.

I instill FEAR, firstly by constantly talking about it. I instill FEAR by using OPINONS liberally, opinions are the lowest form of information yet the most quickly transferable because they are easy to remember because we have a mind that remembers pain by a factor of 10 to pleasure.

If I can get a bunch of folks to talk about and scream about FEAR, I know the propaganda machine is in good order.

And I go to bed at night satisfied, fear and opinions my constant companions to keep me ruling over YOU.

dats the game, you'se takes your side

Hoped That Helped
Good Luck

[kite]

TweetRoutine Requirements Excluded In UAE Ports Deal

Thursday, February 23, 2006



WASHINGTON — A new government agency created in October reviewed the Dubai Ports World deal to manage commercial operations at six U.S. ports, a senior administration official told FOX News.

But documents surfaced late Wednesday that showed approval of the transaction excluded some routine requirements.

Meanwhile, administration officials continued to defend the deal Thursday, saying it will not threaten U.S. port security and that it's not unusual for the president to not know about such deals until they are completed, unless there is an unresolved security risk. They also stress that the United Arab Emirates is a strong U.S. ally in the War on Terror.

The Intelligence Community Acquisition Risk Center (CARC), created as part of ongoing reforms in the intelligence services and overseen by Director of National Intelligence John Negroponte, now reviews foreign investments along with the U.S. Committee on Foreign Investments in the United States (CFIUS).

Last Monday, CFIUS signed off on the deal for DP World to purchase the London-based Peninsular and Oriental Steam Navigation Co., which operates terminals in the major U.S. ports of Baltimore, Miami, New Jersey, New Orleans, New York and Philadelphia.

The deal approved by CFIUS required DP World, which is wholly owned by the United Arab Emirates, to cooperate with future U.S. investigations, read documents obtained by The Associated Press. To win permission of the $6.8 billion purchase, DP World had to agree to reveal records on demand about "foreign operational direction" of its business at U.S. ports. Those records broadly include details about the design, maintenance or operation of ports and equipment.

Under the deal, the government asked DP World to operate American seaports with existing U.S. managers "to the extent possible."

However, the papers show CFIUS did not require DP World to keep copies of business records on U.S. soil, where they would be subject to orders by American courts. Foreign telecommunications companies are usually required to store their business records in the United States.

The documents also say DP World must retain paperwork "in the normal course of business" but did not specify a time period or location where they need to be held, a decision that troubled outside experts who call such agreements routine

"There is a very serious question as to why the records are not going to be maintained on American soil subject to American jurisdiction," said Rep. Peter King, R-N.Y., chairman of the House Homeland Security Committee and a leading critic of the sale.

A senior U.S. official said the Bush administration considers shipping manifests less sensitive. The documents detailing the deal are marked "classified," a designation often given to information that is considered trade secrets to be protected from public release.

Another detail revealed in the documents shows the administration required DP World to designate an executive to handle requests from the U.S. government, but it did not specify citizenship of that individual. Several of the company's top executives are Americans while others are Arab, Dutch and Indian.

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

"They're not lax but they're not draconian," said James Lewis, a former U.S. official who worked on such agreements. If officials had predicted the firestorm of criticism over the deal, Lewis said, "they might have made them sound harder."

Administration: We Won't Outsource Security

Administration officials say the company has made available sensitive trade secrets, documents and other concessions as part of the deal. White House spokesman Scott McClellan repeatedly stated Wednesday that DP World was required to go the extra miles to win approval of the deal.

CARC reviewed the deal in November. DP World promised to take "all reasonable steps" to assist the Department of Homeland Security in any security questions that arose, and pledged to continue participating in security programs to stop smuggling and detect illegal shipments of nuclear materials.

Secretary of State Condoleezza Rice, on her way from Riyadh to Beirut Thursday, said while there is increased scrutiny of who the America deals with since the Sept. 11, 2001, attacks, the system is not set up to prevent a country in the Middle East from doing business with the United States. Rice repeated that the deal was thoroughly vetted and noted that the UAE is a very good ally in the War on Terror.

Fran Townsend, assistant to the president for homeland security and counterterrorism, told FOX News that not one federal agency raised an objection to the deal when it was going through the review process, therefore, it was not unusual for the president to not know about such deals until it was complete.

"Rarely do these wind up on the president's desk and that's only after there has been an investigation and there is some disagreement," Townsend said. "This didn't get there because none of the agencies who reviewed it had any objection and any security concerns the Department of Homeland Security addressed in a security agreement with DP world.

She stressed that the United States is not outsourcing port security, only some port operations.

"Port security will continue to be in the very capable hands of the Coast Guard, and Customs and Border Pontrol," she said. "This is really a commercial deal. There are commercial deals in U.S. ports around the country with other companies, other foreign companies and we address those commercial concerns and the security arrangements because we continue to control security. Security arrangements in U.S. ports won't change regardless of whether this deal goes through or not."

DHS issued a release of port security activities it conducts independently of terminal operators that noted that funding for port security has increased by more than 700 percent since September 11, 2001, from $259 million in 2001 to about $1.6 billion in fiscal year 2005.

The White House late Wednesday also issued a fact sheet that described the CFIUS review process. It said the Treasury Department, which chairs the 12-member panel comprised of officials from the departments of Defense, State, Homeland Security, Commerce and Justice, received notices of transactions, served as the contact point for the private sector, established a calendar for review of each transaction and coordinated the interagency process.

During the 30-day review, each member of the 12 agencies involved conducted internal analyses of the national security implications of the deal, consulted with the intelligence community and brought in officials from the departments of Transportation and Energy. All CFIUS decisions were made by consensus of the entire panel, the White House stated.

'When in Doubt, Cut it Out'

That process, however, does not satisfy Congress.

"Current law dealing with approval of foreign investment needs to be revised. Right now, it's a 12-member committee headed by the Treasury secretary," said Sen. Susan Collins, R-Maine, chairwoman of the Senate Homeland Security and Governmental Affairs Committee, adding, "Congress is really cut out of the loop.

"I think that law should be revised ... I understand the need for confidential review to protect classified information as well as to protect proprietary information. Once the decision is made, Congress should be informed so we can exercise our oversight responsibility," Collins said.

Others contend that the review process at the administration level was incomplete, especially because the panel did not use the entire 45 days allotted to review the sale.

"Outsourcing the ownership of this critical homeland security priority to Dubai Ports World without a thorough review makes no sense at all," added Sen. Patty Murray, D-Wash., who appeared with Collins.

The deal also stinks to several lawmakers who say the UAE's past linkages to the Sept. 11, 2001, hijackers and other international relationships are suspect.

"The wisdom of the American people should be taken into account here. ... It is not as I have seen reported in some corners some form of Islamophobia. That entire description would indicate some sort of irrational fear," said Rep. J.D. Hayworth, R-Ariz., who noted that the UAE was the birthplace of two Sept. 11 hijackers and was used as an operational and financial base for some of the hijackers.

Critics argue the UAE was an important transfer point for shipments of smuggled nuclear components sent to Iran, North Korea and Libya by a Pakistani scientist. The UAE also refuses to recognize Israel and considers the Taliban the rightful government in Afghanistan.

"The bottom line is this: When in doubt, cut it out," Hayworth said.

"In regards to selling American ports to the United Arab Emirates, not just NO, but HELL NO!" Rep Sue Myrick, R-N.C., wrote to Bush in a letter posted on her Web site.

'The UAE is a Very Solid Friend'

Officials counter that the U.S.-UAE alliance goes far deeper than this port deal as part of ongoing reforms in the intelligence services. DHS argued that the UAE gives U.S. and coalition forces "unprecedented access" to its ports and territory, overflight clearances and other logistical assistance. It also provides support for U.S. Navy ships that dock in Jebel Ali and Fujairah, both in the UAE and managed by DP World, and for the U.S. Air Force at Al Dhafra Air Base in the UAE.

DHS also submitted that the UAE has frozen accounts of suspected groups linked to terrorists and has enacted aggressive anti-money laundering and counter-terrorist financing laws. The country allows Customs and Border Protection agents in its ports in Dubai, where they inspect cargo departing for the United States.

"The UAE was one of the first nations to offer financial aid to the U.S. after Hurricane Katrina struck the Gulf Coast. UAE's $100 million donation was one of the largest by any nation," DHS adds.

Former Central Command chief Tommy Franks told FOX News that not only is the UAE a great ally in the War on Terror, but there are more American Navy ships in Dubai's port than any other in the world. He also said the port is run in excellent fashion.

Sen. Joseph Biden, D-Del., agreed that the U.S.-UAE relationship is a decent one but added, "they have been an ally but just as the Colombian government has been an ally with us in terms of fighting narcotics. We wouldn't put the Colombian government in charge of a border control spot. They are an ally, they should be treated fairly. [But] it looks like commerce has been put in front of security."

He added: "If the president pushes this, the Congress will stop it."

Many lawmakers say they have enough support to override a presidential veto, which Bush has promised if a bill passes trying to halt the deal.

Senate Armed Services Committee Chairman John Warner has organized a briefing Thursday for his panel by the by six individuals representing the departments that performed the CFIUS review. Warner, R-Va., told FOX News that after long discussions with Defense Secretary Rumsfeld and other administration officials, "I left with the feeling that the administration had conducted, under the law — as required — a careful review, that the security feature was looked at scrupulously, and that they decided it was not a security risk."

Warner said the UAE is a "valuable ally" and he has seen nothing to indicate the administration didn't do a "careful and thorough job."

DP World is the seventh largest terminal operator in the world, operating 23 facilities in 13 countries. It has terminal contracts in countries including: Germany, Australia, India, South Korea, China, Saudi Arabia and Venezuela.

If it does win U.S. approval for the deal, a condition for the sale, the company will own the contracts for terminals now run in the United States by P&O.

Outside of cruise ship terminals in those ports, operations include two of the 14 terminals in Baltimore's port, one of three terminals in the Miami port, one of five terminals in Newark, two of five terminals in New Orleans, one of five terminals in Philadelphia. DHS officials also note that the deal lets DP World run four of 12 terminals in Houston and allows it to be involved in stevedoring for all five terminals in Norfolk, though DP World would not manage any specific terminal.

The company's retiring chief operating officer, American Edward H. Bilkey, said the company will do whatever the Bush administration asks to enhance shipping security and ensure the sale goes through. Bilkey said Wednesday he will work in Washington to persuade skeptical lawmakers they should endorse the deal; 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."

[trip]

TweetI am impressed sounds like all the government workers did their jobs.

Plus, security at ports has increased 700%, from 256 mil, to 1.6 billion.

Words have bias, first line "CONTROVERSIAL DEAL" , lol

As the reporter reported the deal was explicitly not controversial, that is why is passed all approval process.

First line of any news story is CRAFTED TO GET AN EMOTIONAL RESPONSE, a reporter does that by putting in the first line the most opinon oriented and fearful word they can that passes their legal requirements.

Controversial it is.....( now, that they deemed it so ) note they did not call it hmmmm illegal, backdoor deal, a payoff scandal, etc. etc.

[solidground]

TweetNot only are Bush cronies personally making millions upfront by this deal, but , the UAE is the Middle East's main money launderer and drugs smuggler.
Think about it:
1. Bush Sr is CIA.
2. CIA has been caught over and over smuggling illegal drugs into the US (mostly to finance covert black-ops).
3. Afghanistan's heroin production skyrocketed after we kicked the Taliban out.
4. 100% of Afghani heroin goes through the UAE.