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THE TALK SHOW AMERICAN: Coast Guard Has Port Co. Intel Gaps

Tuesday, February 28, 2006

Coast Guard Has Port Co. Intel Gaps

Citing broad gaps in U.S. intelligence, the Coast Guard cautioned the Bush administration weeks ago that it could not determine whether a United Arab Emirates-based company seeking a stake in some U.S. port operations might support terrorist operations.

The disclosure came during a hearing Monday on Dubai-owned DP World's plans to take over significant operations at six leading U.S. ports.

The Bush administration said the Coast Guard's concerns were raised during its review of the deal, which it approved Jan. 17, and that all those questions were resolved.

The port operations are now handled by London-based Peninsular & Oriental Steam Navigation Co.

"There are many intelligence gaps, concerning the potential for DPW or P&O assets to support terrorist operations, that precludes an overall threat assessment" of the potential merger, the unclassified Coast Guard intelligence assessment said.

"The breadth of the intelligence gaps also infer potential unknown threats against a large number of potential vulnerabilities," the assessment said.

The Coast Guard said the concerns reflected in the document ultimately were addressed. In a statement, the Coast Guard said other U.S. intelligence agencies were able to provide answers to the questions it raised.

"The Coast Guard, the intelligence community and the entire CFIUS (Committee on Foreign Investments in the United States) panel believed this transaction received the proper review, and national security concerns were, in fact, addressed," the Coast Guard said.

That multi-agency government panel reviews foreign purchases of vital U.S. assets.

The report raised questions about the security of the companies' operations, the backgrounds of people working for the companies, and whether other foreign countries influenced operations that affect security.

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