NY Daily News- Face-saving Dubai deal

Sunday February 26, 2006

From NY Daily News:

Face-saving Dubai deal
in the works, pol sez
BY MICHAEL McAULIFF
DAILY NEWS WASHINGTON BUREAU
Sunday, February 26th, 2006

WASHINGTON - The Dubai-owned company trying to take over six U.S. ports was finalizing an agreement yesterday to allow for a more thorough investigation before the sale can go forward, Rep. Pete King said.

The Bush administration set off a political firestorm after it decided quietly that there would be no security threat if Dubai Ports World bought the British company now running the ports, which include Manhattan's cruise ship terminal and Newark's container port. Critics were quick to point out that Dubai is part of the United Arab Emirates - home to two of the 9/11 hijackers.

The agreement between the administration and Dubai Ports World aims to calm angry lawmakers and head off deal-killing legislation by calling for a deeper 45-day probe - something the White House had refused to consider as recently as Friday.

"If it proves true, that's a positive thing," said King (R-L.I.), chairman of the House Homeland Security committee. "But we have to wait and see what the details are."

News of a possible compromise came as The Associated Press reported that the Department of Homeland Security - one of 12 federal agencies on the Committee for Foreign Investment in the U.S. - initially objected to the sale but decided it was fine during the committee's 23-day review.

King and Sen. Chuck Schumer (D-N.Y.) proposed an emergency law to stop the sale, as have other legislators, including Sen. Hillary Clinton (D-N.Y.). President Bush insists the sale poses no threat and has vowed to veto any law against it.

DP World agreed last week to delay its takeover while the White House and Congress hash out the dispute.

A source aware of the negotiations said the in-depth probe could avert a showdown.

"It makes it look like the administration isn't backing down," the source said. "It saves face."

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