Bush faces battle over port deal

A security guard patrols shipping containers at the Port of Miami as US Republican congressmen Mark Foley of Florida and Vito Fossella of New Jersey (not shown) speak at a press conference about the recent purchase of the port on Tuesday in Miami, Florida. PHOTO: AFP

US George W. Bush yesterday faced a split with key congressional allies after he backed a deal that will put an Arab company in charge of operations at six major US ports and threatened to veto a congressional measure threatening it.

Weighing after a long silence on a topic that has roiled Washington for several days, Bush made his veto threat on Tuesday, after top US lawmakers vowed to block the contract until a thorough vetting of United Arab Emirates ports operator Dubai Ports World has been completed.

"The transaction should go forward in my judgment," Bush told reporters.

"If there were any chance that this transaction would jeopardize the security of the United States, it would not go forward," he added.

Unless US lawmakers prevent it, Dubai Ports World's acquisition of the British firm which currently manages the ports is to be finalized on March 2.

Ports by the deal are in New York; Miami; New Jersey; Baltimore, Maryland; New Orleans, Louisiana; and Philadelphia, Pennsylvania.

Arrangement

Bush suggested that going back on the arrangement would be viewed dimly by US allies in the Middle East, given that the ports for years have been operated by another foreign company -- Britain's Peninsular and Oriental Steam Navigation Co.

"I think it sends a terrible signal to friends around the world," the president said.

Answering about the risks entailed by allowing US ports to be managed by a Middle Eastern company, Defense Secretary Donald Rumsfeld praised the United Arab Emirates as a reliable ally in the war on terror, "a very, very solid partner in our workings in the Gulf."

The administration's endorsement put it at odds with a nearly unified bloc of Democratic and Republican lawmakers, who held a succession of press conferences and statements on Tuesday condemning the deal. Many criticized what they describe as the United Arab Emirates' spotty record on combatting terror.

Even erstwhile staunch Bush allies complained that the administration did not consult with lawmakers before allowing the sale to proceed.

"This White House did nothing to communicate with Congress about this deal," Republican Representative Curt Weldon told CNN television on Tuesday. "We're not going to allow this to happen."

Racism

Arab-American groups claimed that the controversy smacks of racism. The American-Arab Anti-Discrimination Committee issued a statement charging "rhetoric and bias" during the debate.

"Those who purport that ports can be run securely by a British company, but not by an Arab one, are engaging in racial profiling on the corporate level," the group said.

Senate Majority Leader Bill Frist, a staunch Republican, said the contract raised "serious questions regarding the safety and security of our homeland."

"The decision to finalize this deal should be put on hold until the administration conducts a more extensive review," Frist said in a statement, adding that the deal could have "a major impact on America's security."

And most powerful Republican in the House of Representatives, Dennis Hastert, wrote to the White House calling for an "immediate moratorium" delaying the contract.

The US business community has also joined the debate: the Miami, Florida-based Continental Stevedoring and Terminals Inc -- an affiliate of Peninsular and Oriental Steam Navigation Co -- complained in a court filing that the takeover would force it to become an "involuntary partner" with Dubai's government and "may endanger the national security of the United States."