21.2.06

Congressmen worry about ports deal with Dubai firm

Top News Article | Reuters.com

NEW YORK (Reuters) - U.S. lawmakers will seek quick action in Congress to block a deal under which a state-owned Dubai company would manage major U.S. seaports, they said on Tuesday. IMPEACH BUSH

Democratic Sen. Charles Schumer and Republican Congressman Peter King, who is chairman of the House of Representatives Homeland Security Committee, would push the legislation as soon as Congress resumes on Monday, Schumer's office said in a statement.

King said on Sunday the Bush administration had failed to put adequate security conditions on the deal, which has raised concerns about the safety of strategic facilities considered vulnerable since the September 11 attacks.

King said that before the administration approved the sale of British firm P&O, which manages six U.S. ports, to Dubai Ports World of the United Arab Emirates, it failed to determine whether the company could be trusted.

The UAE company would control management of ports in New York and New Jersey, Baltimore, Philadelphia, New Orleans and Miami.

"In light of these critical functions being transferred from a private company based in Britain to a United Arab Emirates government-owned company based in Dubai ... Sen. Schumer and Congressman Peter King will announce their emergency legislation to suspend the Dubai port deal," the statement said.

FULL INVESTIGATION

It said the legislation would require a full investigation by the Committee on Foreign Investment in the United States and Congress would have authority to stop the sale.

Congressman Mark Foley, a Florida Republican, and Rep. Vito Fossella, a New York Republican, were to hold a news conference at the Port of Miami on Tuesday with a spokesman for the shipping firm suing to stop the ports' operations from being sold to Dubai Ports.

New York City Mayor Michael Bloomberg also backed calls by Schumer, a Democrat, and other legislators for further review of the contract, a spokesman said. "Their concerns need to be met and addressed," the spokesman said.

Homeland Security Secretary Michael Chertoff has defended the deal, saying the administration approved it after a classified review and included provisions to protect national security.

New York's other U.S. senator, Democrat Hillary Clinton, said last week she planned legislation to ban companies owned or controlled by foreign governments from acquiring U.S. port operations, and Republican Gov. George Pataki has also criticized the deal.

U.S. seaports handle 2 billion tonnes of freight each year. Only about 5 percent of containers are examined on arrival and since September 11, 2001, security experts in New York have been particularly concerned about ports' vulnerability to attack.

U.S. officials have praised the United Arab Emirates for steps to protect its booming financial sector against abuse by terrorism financiers.
Money for the September 11 attacks was wired through the UAE's banking system, according to U.S. officials. Two of the September 11 hijackers were UAE citizens.

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