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Washington Post- Dubai Firm Cleared to Buy Military Supplier
Saturday April 29, 2006From Washington Post:
By Paul Blustein
Saturday, April 29, 2006; A06
President Bush yesterday approved the takeover by a
The approval allows Dubai International Capital LLC, which is owned by the
The move comes seven weeks after Dubai Ports World, another government-owned company, abandoned plans to take over terminal operations at several
Lawmakers said the Doncasters deal underwent a lengthier, full investigation by the Committee on Foreign Investment in the United States (CFIUS), a secretive interagency panel charged with screening foreign takeovers for national security problems. The committee, which is chaired by the Treasury Department, includes representatives from the Pentagon, the Homeland Security Department and a number of other agencies.
"This investigation was a significant improvement over what happened before," said Rep. Peter T. King (R-N.Y.), chairman of the House Homeland Security Committee, in a statement.
Sen. Charles E. Schumer (D-N.Y.), who spearheaded opposition to the ports takeover, agreed, saying in a statement: "There are two differences between this deal and the Dubai Ports deal. First, this went through the process in a careful, thoughtful way; and second, this is a product, not a service, and the opportunity to infiltrate and sabotage is both more difficult and more detectable. Unless new information comes out, I will not oppose this deal."
Administration officials contend that the investigation of the ports deal was thorough. But they took care to put the Doncasters transaction through a longer series of formal hurdles, including a full 45-day review that requires submission of findings to the president for a final decision. They also briefed congressional leaders in advance.
As is common in CFIUS reviews of foreign purchases, the committee demanded certain conditions for approval. In a statement, presidential spokesman Scott McClellan said the panel carefully considered the fact that the plants owned by Doncasters are the Pentagon's sole source of supply for turbine-engine blades. "While the Committee did not find credible evidence" to suggest that the new
Doncasters has nine plants in the
At least one lawmaker dissented. Rep. John Barrow, a Democrat whose
Still unclear is the fate of another
The transaction has aroused little alarm among port security experts, and a spokesman for the
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