NY Post- NEW 'DESERT' STORM OVER DEFENSE-PARTS SALE

Friday March 03, 2006

From the NY Post:

NEW 'DESERT' STORM OVER DEFENSE-PARTS SALE

By GEOFF EARLE Post Correspondent

WASHINGTON - The feds are investigating whether a United Arab Emirates company's effort to take over military-parts factories in the United States should be stopped for national-security reasons.

 

An administration panel informed congressional committees on Monday that the government wants to review Dubai International Capital's $1.2 billion offer to take over Doncasters Group Ltd., congressional sources confirmed.

The British-owned firm makes tank engines and aircraft parts at plants in Georgia and Connecticut. The company makes gas turbines, high-tech alloys and casings for most of the major defense contractors.

The feds called for an additional 45-day review of the purchase.

The new scrutiny comes amid a continued political uproar over Dubai Ports World's efforts to take over operations at six U.S. ports for $6.8 billion.

"Why did they do a 45-day review for tank engines in a box, but not for potential nuclear weapons in a ship's container?" asked Sen. Charles Schumer, a leading critic of the port deal.

Schumer said he is continuing to consult with Rep. Peter King (R-L.I.), chairman of the House's Homeland Security Committee, and that the two will press on with legislation to give Congress greater review power over foreign companies purchasing sensitive U.S. operations. Under bipartisan pressure, the port deal is getting its own 45-day review.