California Conservative

Dubai Ports World said Thursday it would give up its management stake in the controversial ports deal. Dubai Ports World announced just hours after Republican leaders warned President Bush that the House and Senate appeared ready to block Dubai from taking over some terminal operations at six U.S. ports.

“Because of the strong relationship between the United Arab Emirates and the United States and to preserve that relationship, DP World has decided to transfer fully the U.S. operation of P&O Operations North America to a United States entity,” DP World’s chief operating officer, Edward H. Bilkey, said in a statement.

The company said its decision was “based on an understanding that DP World will have time to affect the transfer in an orderly fashion and that DP World will not suffer economic loss.”

The announcement was somewhat of a blow for Democrats, who were pushing for a Senate vote on an amendment that would halt the deal. The Senate later voted 51-47 to ignore GOP requests to wait until a 45-day review of the deal is completed before they try to stop it. Republican leaders needed 67 votes to stop debate on the measure.

“This should make the whole issue go away,” said Senate Majority Leader Bill Frist. “Dammit,” said Democratic Senators.

Democrats were pushing for an amendment to ensure that no UAE-related company has any control over U.S. port operations. The amendment, sponsored by Dem. Sen. Chuck Schumer, would not only have blocked the Dubai deal, but also other U.S. ports deal with any company wholly owned or controlled by any foreign government that recognized the Taliban in Afghanistan from 1996-2001.

However, the UAE cut all ties of support with the Taliban after Sept. 11, 2001. The message was clear: the UAE condemned the terrorist attack on the US and would work to support the war on terror.

If the Democrats succeeded in forcing a vote on the amendment, Democrats could then claim a big election year win in the area of national security — an area Republicans generally have a stronger track record on.

“The bottom line is, security has to come first. We know that this deal would not bring security,” Schumer, D-N.Y., told reporters Thursday. “We had to force this vote, it’s unfortunate that we did but now the handwriting is on the wall and that is that the UAE will not operate ports in the United States of America, plain and simple.” (Right… this is why Schumer opposes the President’s surveillance program, because security has to come first.)

Members of Dubai’s royal family were said to be furious on Thursday over U.S. plans to reject their bid to operate terminals at U.S. ports - and they’re threatening to cancel American business deals and perhaps even boot U.S. military forces from strategic bases in the UAE.

“They’re saying, ‘All we’ve done for you guys, all our purchases, we’ll stop it, we’ll just yank it,’” a deal insider told the Hill newspaper.

The source said that Dubai’s royals were “furious” at both Republicans and Democrats over the rebuff.

At stake are two major U.S. bases in the UAE. The port of Jebel Ali docked over 500 Navy warships last year, and played host over 70,000 American troops.

The Air Force flies reconnaissance and refueling missions out of the Al Dahfra airbase, which played a critical role in the air wars over Iraq and Afghanistan.

A harsh reaction from Dubai could impact a pending decision for the Emirates Group airline to purchase Boeing’s new 787 Dreamliner - or go with the European competition, the Airbus A350.

Last fall, the Hill said, Dubai ordered 42 Boeing 777’s in a deal worth $9.7 billion.

AND…

The United States and United Arab Emirates have postponed free trade talks, the U.S. Trade Representative’s office said on Friday, a day after a Dubai state-owned company said it would sell U.S. port management operations to calm a political furore.

Bill Reinsch, president of the National Foreign Trade Council, said the ports episode would make it harder for Bush to accomplish his goals in the Middle East.

“The message is that we’re not distinguishing between countries that help us in the war on terrorism and countries that don’t. So the obvious question is why cooperate with the United States, if we’re going to treat you as a terrorist anyway?” Reinsch said.

Cathy Novelli, former chief U.S. negotiator for the UAE talks, said she thought the two countries would get past the episode.

“This is one very unfortunate incident and that should not be the determining factor in a very robust overall economic relationship,” Novelli said. But “I think it’s very understandable that this would upsetting to them.“

Got that right.

Homeland Security said of the port deal prior to Thursday:

“DP World will not, nor will any other terminal operator, control, operate or manage any United States port. DP World will only operate and manage specific, individual terminals located within six ports.”

(read the full security measures and who actually secures US ports)

I wonder if Schumer will author an amendment banning these countries from currently operating in US ports?: China, Hong Kong, Japan, South Korea, Singapore and Taiwan.

Way to go, Senators.

Cross-posted at Amy’s Blog

This entry was posted on Saturday, March 11th, 2006 at 4:11 pm and is filed under Author: Amy Proctor, Domestic Policies, Homeland Security, Middle East, Terrorism. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.