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Author: Subject: US port security turned over to Arab firm
BDx13
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[*] posted on 2-20-2006 at 11:16 PM
US port security turned over to Arab firm


How do you feel about that one?!

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http://www.cnn.com/2006/POLITICS/02/20/port.security/index.h...

Bush faces pressure to block port deal
Lawmakers voice concerns about takeover by Dubai-based firm

Monday, February 20, 2006; Posted: 9:57 p.m. EST (02:57 GMT)

WASHINGTON (CNN) -- President Bush on Monday faced political pressure to block a deal that would give a United Arab Emirates-based company management of six major U.S. seaports.

The Republican chairman of the House Homeland Security panel said the deal should not go through without a complete investigation.

"I would urge the president to freeze the contract, hold this contract, until a full and thorough and complete investigation can be conducted," said New York Rep. Peter King, who has been briefed on the transaction.

He said Americans can't have faith in the company involved because "there was never a thorough investigation done of Dubai Ports."

The deal -- which will affect the ports of New York and New Jersey; Philadelphia, Pennsylvania; Baltimore, Maryland; Miami, Florida; and New Orleans, Louisiana -- has triggered security concerns among some members of Congress and the public.

The Bush administration has said the UAE is a key ally in the war on terror.

Others, however, point out that two of the September 11, 2001, hijackers were from the UAE. In addition, most of the hijackers received money channeled through various sources based in the UAE, according to the Justice Department and the 9/11 commission.

Earlier this month, shareholders of the U.K.-based Peninsular and Oriental Steam Navigation Company (P&O) approved the company's acquisition by Thunder FZE, a subsidiary of Dubai-based Dubai Ports World.

P&O directs commercial operations at the six U.S. ports. The takeover by DPW means that the Dubai company will be in charge of those operations.

On Sunday, Sen. Charles Schumer, a New York Democrat, held a news conference with relatives of some of those killed in the terrorist attacks, and denounced the takeover. (Watch lawmakers call for deal to be stopped -- 2:55)

"Outsourcing the operation of our largest ports to a country with long involvement in terrorism is a homeland security accident waiting to happen," he said.

Deal 'by the book'

Administration officials Monday sought to downplay the deal, saying it was done properly and that they would not jeopardize the security of American ports.

Bush was unaware of the deal until he heard reports of the congressional uproar, presidential adviser Dan Bartlett told CNN.

"The process was done by the book," Bartlett said. "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."

A Dubai Ports World spokesman told CNN that the firm has received all the necessary regulatory approvals, and that the security systems in place at the ports would only get better under the new management.

"All DP World ports are [International Security Port System] certified, as are any P&O ports in the U.S.," the spokesman said. "We intend to maintain or enhance current security arrangements, and this is business as usual for the P&O terminals."

Michael Seymour, the president of P&O's North American operations, said the company "has long worked with U.S. government officials in charge of security at the ports to meet all U.S. government standards."

"We are confident that the DP World purchase will ensure that our operations will continue to meet all relevant standards," he said.

Industry official alleges 'racism'

A port security expert, meanwhile, told CNN that fears that the agreement will reduce U.S. security are based on "bigotry" and that "shameless" politicians are creating an issue they think will resonate with the public.

Kim Petersen, head of SeaSecure, a U.S.-based maritime security company, and executive director of the Maritime Security Council -- which represents 70 percent of the world's ocean shipping -- told CNN, "This whole notion that Dubai is going to control or set standards for U.S. ports is a canard ... is factually false."

Dubai Ports World, like all port owners, must abide by the Maritime Transportation Security Act passed by Congress in 2002 and International Ship and Port Facility Security codes enacted in 2004, he said. Both sets of security measures are enforced in the United States by the U.S. Coast Guard.

Petersen said DPW will be under "identical" security obligations, and said opposition to the purchase "comes down to bigotry [against] Arabs."

Petersen said the company has an "exemplary" record of security compliance certification.

Ridge: 'Legitimate' concerns

Homeland Security secretary Michael Chertoff defended the deal in appearances on talk shows Sunday. He said federal law required a review of the sale by a committee that includes officials from the Homeland Security, Treasury and Commerce departments, along with the FBI and the Pentagon.

"We look at what the issue of the threat is. If necessary, we build in conditions or requirements that, for extra security, would have to be met in order to make sure that there isn't a compromise to national security," Chertoff said on CNN.

Sen. Robert Menendez, a New Jersey Democrat, pounced on Chertoff, who is already under fire for his agency's response to Hurricane Katrina.

"You can't just simply tell us, 'Trust us,' " Menendez told reporters. "We trusted the government response to Hurricane Katrina -- and the people of the Gulf were largely left on their own."

Menendez has proposed a new law prohibiting the sale of operations at U.S. ports to companies owned by international governments, noting 95 percent of cargo reaching U.S. ports is not inspected.

Chertoff's predecessor, Tom Ridge, said that during his tenure as secretary from October 2001 to February 2005, he sat in on deals with similar national security concerns, and that he believes U.S. officials would not jeopardize national security.

But he also told CNN, "I think the anxiety and the concern [over the deal] that has been expressed by congressmen and senators and elsewhere is legitimate."

But Ridge said, "The bottom line is, I think we need a little bit more transparency here. There are some legitimate concerns about who would be in charge of hiring and firing, security measures, added technology in these ports that we'll need to upgrade our security.

"So I think it's very appropriate for the administration to go to the Hill and explain why they think they have not compromised security and, in fact, as they've announced, they will enhance and improve security," he said. "It's tough to see that right now on the surface."





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clevohardcore
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[*] posted on 2-20-2006 at 11:40 PM


I heard of this on Friday and this is a way for government officials to let important things fall to the wayside and dissapear from the public eye. I am glad to hear more about this. THIS IS FUCKED UP!!!!!!!!!!!!!!!



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[*] posted on 2-21-2006 at 12:16 AM


what I ment is they release a news story on a friday so the public will not notice it since most people are doing other things rather than watching the news etc...



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[*] posted on 2-21-2006 at 12:26 AM


I don't know, doesn't bother me too much. Definitely no more than a bullshit war that only exacerbates the situation does, or the whittling away of the Bill of Rights and what not. Could be dangerous, but so could occupying foreign lands under false pretenses...



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[*] posted on 2-21-2006 at 12:54 PM


I think you guys are better off outsourcing your whole government.:P



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[*] posted on 2-23-2006 at 12:34 AM
You knew there had to be a reason, right?


Arab Co., White House Had Secret Agreement

By TED BRIDIS, Associated Press Writer2 hours, 14 minutes ago

The Bush administration secretly required a company in the United Arab Emirates to cooperate with future U.S. investigations before approving its takeover of operations at six American ports, according to documents obtained by The Associated Press. It chose not to impose other, routine restrictions.

As part of the $6.8 billion purchase, state-owned Dubai Ports World agreed to reveal records on demand about "foreign operational direction" of its business at U.S. ports, the documents said. Those records broadly include details about the design, maintenance or operation of ports and equipment.

The administration did not require Dubai Ports to keep copies of business records on U.S. soil, where they would be subject to court orders. It also did not require the company to designate an American citizen to accommodate U.S. government requests. Outside legal experts said 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."

The conditions involving the sale of London-based Peninsular and Oriental Steam Navigation Co. 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.

The concessions ? described previously by the Homeland Security Department as unprecedented among maritime companies ? reflect the close relationship between the United States and the United Arab Emirates.

The revelations about the negotiated conditions came as the White House acknowledged President Bush was unaware of the pending sale until the deal had already been approved by his administration.

Bush on Tuesday brushed aside objections by leaders in the Senate and House. He pledged to veto any bill Congress might approve to block the agreement, but some lawmakers said they still were determined to capsize it.

Dubai Port's top American executive, chief operating officer 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."

Under the deal, the government asked Dubai Ports to operate American seaports with existing U.S. managers "to the extent possible." It promised to take "all reasonable steps" to assist the Homeland Security Department, and it pledged to continue participating in security programs to stop smuggling and detect illegal shipments of nuclear materials.

The administration required Dubai Ports to designate an executive to handle requests from the U.S. government, but it did not specify this person's citizenship.

It said Dubai Ports must retain paperwork "in the normal course of business" but did not specify a time period or require corporate records to be housed in the United States. Outside experts familiar with such agreements said such provisions are routine in other cases.

Bush faces a potential rebellion from leaders of his own party, as well as a fight from Democrats, over the sale. It puts Dubai Ports in charge of major terminal operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

Senate and House leaders urged the president to delay the takeover, which is set to be finalized in early March. Senate Majority Leader Bill Frist of Tennessee said the deal raised "serious questions regarding the safety and security of our homeland." House Speaker Dennis Hastert, R-Ill., asked the president for a moratorium on the sale until it could be studied further.

In Saudi Arabia, Secretary of State Condoleezza Rice said the agreement was thoroughly vetted. "We have to maintain a principle that it doesn't matter where in the world one of these purchases is coming from," Rice said Wednesday. She described the United Arab Emirates as "a good partner in the war on terrorism."

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

"I think somebody dropped the ball," said Rep. 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."

At the White House, spokesman Scott McClellan said Bush learned about the deal "over the last several days," as congressional criticism escalated. McClellan said it did not rise to the presidential level, but went through a government review and was determined not to pose a threat.

McClellan said Bush afterward asked the head of every U.S. department involved in approving the sale whether there were security concerns. "Each and every one expressed that they were comfortable with this transaction going forward," he said.

Commerce Secretary Carlos Guiterrez told the AP the administration was being thoughtful and deliberate approving the sale.

"We are not reacting emotionally," Guiterrez said in an interview Wednesday. "That's what I believe our partners from around the world would like to see from us is that we be thoughtful. That we be deliberate. That we understand issues before we make a decision."





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