Israel a factor in ports deal

BY CRAIG GORDON
NEWSDAY WASHINGTON BUREAU

March 1, 2006

WASHINGTON -- Senate Democrats yesterday opened a new line of attack against the controversial Dubai ports deal, challenging a top executive of the United Arab Emirates firm to explain that nation's support of a boycott against Israel.

But President George W. Bush showed no signs of backing down, voicing renewed support for the deal yesterday even as a new poll shows seven in 10 Americans oppose it.

An embattled Bush also hit an all-time low approval rating amid the port controversy, with just one in three Americans saying he's doing a good job.

Dubai Ports World is seeking to take over some terminal operations at six major U.S. ports. The company Sunday agreed to an added 45-day security review but that has done little to quell the controversy.

At a Senate Commerce Committee hearing, DP World chief operating officer Edward "Ted" Bilkey said the same U.A.E.-owned holding company that owns DP World also owns a Dubai customs office that enforces the U.A.E.'s participation of an Arab League boycott of products made in Israel.

Bilkey insisted that would have nothing to do with DP World operations in the United States or elsewhere. "The largest shipping company in Israel is one of our clients," he said.

But Democratic Sens. Bill Nelson of Florida and Barbara Boxer of California questioned whether the shared parent would influence DP World policies.

"You can't just sit here and divorce yourself from the fact that they set up a holding company ... that does nothing but move forward with a boycott of Israel," Boxer said.

Even committee chairman Sen. Ted Stevens (R-Alaska), who spoke favorably of the deal, joined in, asking Bilkey at the hearing's close, "Do you have any Jewish members of your board?" Bilkey said no. Stevens said, "I didn't expect any."

The United States has criticized the boycott as an impediment to free trade, but also has noted that the U.A.E. and other nations haven't enforced it as strictly as in the past.

Earlier in the day, Bush again spoke in favor of the deal, urging Congress, "Please, look at the facts."

But a new CBS News poll suggests Bush is paying a political price, with his approval rating now at 34 percent. That's down from 42 percent last month, also amid growing public pessimism about the Iraq war.

At the hearing, senators also grilled U.S. officials on why they didn't know the Coast Guard warned about "many intelligence gaps" in the ports deal.

The Coast Guard acknowledged yesterday that even after signing off on the deal in December, it continued investigating Dubai Ports World.

Rep. Peter King (R-Seaford) cited the Coast Guard report as a reason for introducing his bill yesterday to require congressional approval of the deal.

Glenn Thrush of the Washington bureau contributed to this story.

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