".......I love it....... I'm a staunch Republican - but, this USA ports situation sucked.............
Dubai Company Gives Up Stake in U.S. Ports
By Edwin Chen, Times Staff Writer - 11:43 AM PST, March 9, 2006
WASHINGTON -- Amid unyielding congressional opposition, Dubai Ports World, a company partly owned and operated by the United Arab Emirates, today announced that it would divest itself of all operational roles in U.S. port facilities.
But it was not immediately clear whether that concession alone would appease the bipartisan chorus against a Bush administration-brokered arrangement to let the Middle Eastern firm manage port facilities in New York, Newark, Philadelphia, Baltimore, Miami and New Orleans.
Dubai Ports World's decision was announced by Sen. John Warner (R-Va.), chairman of the Senate Armed Services Committee, during a floor speech this afternoon in which he read from a document that he identified as a statement by Dubai Ports World's chief operating officer, Edward Bilkey.
"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," Warner said, quoting from Bilkey's statement.
Reuters new service reported that an unnamed DP World spokesman declined to elaborate on what Warner had read: "His announcement says everything we have to say at this point."
The latest development in the political firestorm, which threatened to create problems for GOP lawmakers in the November elections, came shortly after the White House, facing a Republican uprising on Capitol Hill, sought to play down President Bush's threat to veto any attempt by Congress to scuttle the deal.
After the arrangement became public, lawmakers threatened to block Dubai Ports World's purchase of the Peninsular & Oriental Steam Navigation Co., a private British firm, in a $6.8-billion deal.
The opposition focused on the security of the ports, with critics noting that UAE once backed the Taliban regime in Afghanistan and remains hostile toward Israel. UAE also is where two of the Sept. 11 hijackers once were based. Dubai's supporters contended that it is a dedicated U.S. ally with deep involvement in Western businesses.
DP World said it would transfer all interest in U.S. port operations to an American-based company, but the announcement did not explain how DP World would manage the divestiture. The firm indicated that details of the surprise deal were still being worked out.
Warner said Sheikh Mohammed al Maktoum, prime minister of the United Arab Emirates, "advised the company ... that this action is the appropriate course to take."
Sen. Charles Schumer (D-N.Y.), a chief critic of the deal, was cautious.
"This is obviously a promising development, but the devil's in the details," Schumer said. "Those of us who feel strongly about this issue believe that the U.S. part of the British company should have no connection to the United Arab Emirates or DP World."
Today's unfolding developments came a day after a major House committee overwhelmingly voted to nullify portions of the deal.
latimes.com
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