President Bush is naive to think Americans will be comfortable with a deal he approved that would put a company from the United Arab Emirates in charge of seaport operations in New York and five other U.S. cities.
Opponents from both parties want to block the purchase by Dubai Ports World of a British company that now runs port operations in New York, Newark, Philadelphia, Baltimore, Miami and New Orleans. DP World is owned by the UAE, a union of seven oil-rich Arab emirates including Dubai.
The arrangement has raised security concerns among governors and members of Congress, given that two of the Sept. 11, 2001, hijackers were from the UAE and that most of the hijackers received funds channeled through the UAE, according to the Justice Department and the Sept. 11 commission.
An inter-agency panel from the departments of Homeland Security, Treasury, Defense, State and Commerce signed off on the recent transaction. Secretary of State Condoleezza Rice, speaking with Arab journalists last week, said of the deal, “There was a thorough review. It was decided that this could be done and done safely.”
If the deal goes through, the Denver Tech Center and the Meridian Business Center would also become holdings of the Persian Gulf monarchy. The business parks are small pieces of London’s Peninsular & Oriental Steam Navigation Co.
“We believe this is a legitimate deal that will not jeopardize the security of the country and at the same time send out a signal that we’re willing to treat people fairly,” Bush told reporters Tuesday.
The UAE has been a solid ally in the war on terror, but the nation’s well-meaning leadership cannot safeguard hiring and security decisions in the U.S.ports.
Sen. Charles Schumer, D-N.Y., framed the concern, saying, “Outsourcing the operation of our largest ports to a country with long involvement in terrorism is a homeland security accident waiting to happen.” Peter King, R-N.Y., chairman of the House Homeland Security Committee, said, “This was a very compressed investigation – at most 20 to 25 days, and only a few days was spent looking” at security aspects. Senate Majority Leader Bill Frist said if the deal isn’t delayed until a more thorough review can be done, he’ll introduce legislation to stall it. Bush vowed to veto any such bill. The acquisition is to close on March 2.
Lawmakers are right to be skeptical. The Sept. 11 commission identified U.S. seaports as a major point of vulnerability, and the Coast Guard inspects only 5 percent of incoming cargos. Port managers are responsible for commercial operations, including hiring.
It’s not unrealistic to imagine the worst. As King noted, securing the nation’s ports is difficult enough. Why add to the danger by exposing them to a “company which could have an al-Qaeda infiltration”?
