White House: Bush Didn't Know About Port Deal

Discussion in 'General Discussion' started by E.L., Feb 22, 2006.

  1. E.L.

    E.L. Moderator of Lead Moderator Emeritus Founding Member


    White House: Bush Didn't Know About Port Deal
    Wednesday, February 22, 2006


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    •Transcript: President Bush Conference •Transcript: Lawmakers on 'FNS'•Firm Sues Over UAE Port Plan•Lawmakers Urge Greater Review of UAE Firm's Deal to Run Six U.S. Ports•Administration OK With UAE Running Six Major U.S. Ports
    WASHINGTON — President Bush was unaware that a controversial deal to sell shipping operations at six major U.S. seaportsto 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.

    (Story continues below)

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    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 a London-based firm that runs 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 Peninsular and Oriental Steam Navigation Co.

    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 commercial 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.

    On Wednesday, 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.

    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."

    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."

    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.
  2. ColtCarbine

    ColtCarbine Monkey+++ Founding Member

  3. E.L.

    E.L. Moderator of Lead Moderator Emeritus Founding Member

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