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Dubai firm safe to run ports: Bush

Julian Borger

Congress fears terrorism risk in the deal

Washington: George Bush was on Wednesday struggling to fend off a political crisis over the pending sale of shipping operations at six major U.S. ports to a company owned by the United Arab Emirates, after senior Republicans pledged to block the agreement despite the threat of a presidential veto.

The White House said President Bush had not known about the $6.8 billion sale of the British company P&O, which manages the eastern U.S. ports, to Dubai Ports World before it was agreed, but he rejected suggestions that it might endanger U.S. security.

Congressional leaders, both Republican and Democratic, have expressed concern about the deal, pointing out some of the hijackers in the September 11 attacks used the UAE as a financial and operational base. It was also alleged to have been a transfer point for nuclear components smuggled to Korea and Libya by Pakistani scientist Abdul Qadeer Khan. Furthermore, Congress has complained that it was not consulted over the deal.

A determined Bush said on Tuesday he would use his first presidential veto in more than five years in office to stop any congressional attempt to block the sale. He insisted U.S. authorities would remain in control of security at the six ports — Baltimore, Miami, New Orleans, New York, New Jersey, and Philadelphia — and that there was no difference between a British and a UAE firm owning the port operations.

Terrible signal

``I think it sends a terrible signal to friends around the world, that it's OK for a company from one country to manage the port, but not a country that plays by the rules and has a good track record from another part of the world,'' the President said. But in an editorial the New York Times wrote: ``The issue is not, as Mr. Bush is now claiming, a question of bias against a Middle Eastern [West Asian] company. The United Arab Emirates is an ally, but its record in the war on terror is mixed.'' The Washington Post, on the other hand, accused critics of spreading ``prejudice and misinformation.'' Opposition to the deal has united left and right. Democrats such as Senators Harry Reid and Charles Schumer have denounced the agreement, as have Republican Senate leader Bill Frist who is considering a run for the presidency in 2008, and Rick Santorum, a rightwing Senator from Pennsylvania fighting to hold his seat in congressional elections this November.

- Guardian Newspapers Limited 2006

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