The Talk Show American

THE TALK SHOW AMERICAN: 02/19/2006 - 02/26/2006

Friday, February 24, 2006

Chertoff unaware of ports deal until after OK

Homeland Security Secretary Michael Chertoff was not aware a Dubai-owned company was seeking to operate terminals in six U.S. ports and that his agency was leading the review until after the deal's approval, an administration official said yesterday.
Mr. Chertoff's spokesman, Russ Knocke, told The Washington Times the issue rose no higher than the department's assistant secretary for policy, Stewart Baker.
"[Chertoff] was not briefed up to this until after this story started appearing in the newspapers," Mr. Knocke said.
Mr. Chertoff is the third Cabinet official to acknowledge he did not know his agency had signed off on the plan as a member of the interagency Committee on Foreign Investments in the United States (CFIUS). Both Defense Secretary Donald H. Rumsfeld and Treasury Secretary John W. Snow have publicly said they were unaware of the deal.
But Mr. Chertoff's exclusion is more noteworthy because his department headed the CFIUS review and is in charge of security at all U.S. ports.
Mr. Knocke said the reason Mr. Chertoff was not informed was because CFIUS canvassed scores of government agencies and none objected to Dubai Ports World's (DPW) bid to buy terminal operations on national security grounds.
If there had been an objection, the committee would have conducted a more extensive 45-day investigation and notified Cabinet secretaries. The 12-member committee, which includes six Cabinet secretaries, on Jan. 17 approved the company buying a British firm that runs terminals at the ports.

U.A.E. Company Agrees to Delay Ports Takeover

A United Arab Emirates company offered Thursday to delay part of its $6.8 billion takeover of most operations at six U.S. ports to give the Bush administration more time to convince skeptical lawmakers the deal poses no security risks.

The surprise announcement relieves some pressure from a standoff between President Bush and the Republican-controlled Congress, which has threatened to block the deal because of the UAE's purported ties to terrorism.

Under the offer coordinated with the White House, Dubai Ports World said it will agree not to exercise control or influence the management over U.S. ports pending further talks with the Bush administration and Congress. It did not indicate how long it will wait for these discussions to take place.

The Dubai-based state-owned company said it will move forward with other parts of the deal affecting the rest of the world.

"It is not only unreasonable but also impractical to suggest that the closing of this entire global transaction should be delayed," Dubai Ports said in a statement.
"The reaction in the United States has occurred in no other country in the world," the company's chief operating officer, Ted Bilkey, said in a statement. "We need to understand the concerns of the people in the U.S. who are worried about this transaction and make sure that they are addressed to the benefit of all parties. Security is everybody's business."

Nuclear Reactors Top Dubai Ports' Cargo List

Nuclear reactors are among the most significant U.S. exports shipped out of five of the six ports slated for takeover by a Dubai company next week.

According to U.S. Transportation Department numbers cited Thursday by Newsday, the two "top products" shipped in and out of the Ports of New York and New Jersey are "mineral fuel [and] nuclear reactors." The New York-New Jersey ports handle 4,862 ships each year.

The Port of Baltimore processes 1,747 ships each year, where the top two products, according to Newsday, are "vehicles [and] nuclear reactors."

The Port of Miami unloads 1,247 ships annually. There the two top products are "apparel [and] nuclear reactors."

The Port of New Orleans processes 4,612 ships each year, where the top cargo is reportedly "machinery [and] nuclear reactors."
Of the six ports slated for takeover by Dubai Ports World, only Philadelphia does not count nuclear reactors as one of its "top products," with "precious stones [and] mineral fuel" leading the cargo list there.

Shipping numbers cited by Newsday are for 2004.