Dubai company agrees to postpone US port takeover
Photo: AFP
WASHINGTON (AFP) - A United Arab Emirates company has agreed to postpone its plans to take over management of six US ports after the proposed deal ignited harsh criticism from both Democrats and Republicans on national security grounds.
In a written statement released late Thursday, the state-owned Dubai Ports World said it will not assume control of the terminals until US lawmakers have time to study the deal.
"The reaction in the United States has occurred in no other country in the world," DP World chief operating officer Ted Bilkey said in the statement. "We need to understand the concerns of the people in the US who are worried about this transaction and make sure that they are address to the benefit of all parties. Security is everybody's business."
The company statement came hours after Deputy White House Chief of Staff Karl Rove said in a radio interview that President George W. Bush, who has vowed to veto any move by lawmakers to block the deal, might consider a postponement after all.
"Look, there are some hurdles, regulatory hurdles ... that are going to be concluded next week. There's no requirement that it close, you know, immediately after that," Rove told Fox News Radio.
The conciliatory words came as officials from a dozen federal agencies took part in a US Senate briefing on plans for DP World to acquire the British firm P and O which currently manages the six US ports.
US Senator Chuck Schumer welcomed he Bush administration's olive branch.
"A small delay is an excellent idea and would give a chance for a solution amiable to all sides to follow," the New York Democrat said in a statement.
The parade of officials on Capitol Hill sought to allay lawmakers' outrage at not having been notified in advance about the plan, which they said could leave America exposed to future acts of terror.
The administration has found few congressional allies in the controversy which analysts said could lead not only to the first veto of the Bush presidency, but to an almost certain override by Congress -- potentially a major setback for the president.
Administration officials testified that the UAE has been a stalwart ally in the US-led war on terror, and was worthy of being trusted to manage US seaports, but Senator Carl Levin, the top Democrat on the committee, deemed Dubai's record to be lacking.
"The UAE was apparently one of only a handful of countries in the world to recognize the Taliban regime in Afghanistan, whose support of Osama bin Laden and Al-Qaeda led to the events of 9/11," Levin said, referring to the September 11, 2001 terror attacks.
"Millions of dollars in Al-Qaeda funds went through UAE financial institutions," Levin said.
Deputy Secretary of Defense Gordon England told lawmakers however that the fears have been overblown, assuring them the UAE is "a friend and an ally of the United States."
He added that the vetting process for the deal "was not cursory and was not casual," but rather was "in-depth and comprehensive" and expressed concern that the outcry over the sale would be perceived as "paranoid and isolationist."
President Bush said Thursday that an improved flow of information with members of Congress likely would help to dispel doubts.
"The more people learn about the transaction that has been scrutinized and approved by my government, the more they'll be comforted that our ports will be secure," Bush told reporters as he met with his cabinet.
"We will continue to talk to people in Congress and explain clearly why the decision was made," said Bush.
The White House also stressed that security at the ports will still fall to the US Coast Guard, US Customs, and US Border Patrol.
Unless delayed or blocked, the transaction is to be finalized on March 2, and the ports affected are in New York; Miami; Newark, New Jersey; Baltimore, Maryland; New Orleans, Louisiana; and Philadelphia, Pennsylvania.
Meanwhile, Dubai Ports World has undertaken its own public relations offensive, hiring former US Senator Bob Dole to help salvage the 6.8 billion dollar deal, according to media reports.
Analysts think a delay in implementing the deal is necessary to defuse a political confrontation between Bush and Congress and permit the administration time to allay public fears.
A delay of up to 60 days would "get people to back off the ledge here and give everybody a chance to back down," said Republican consultant Rich Galen.
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