For Immediate Release                                  

March 10, 2006                                       

Preventing Another Dubai Ports Fiasco: New Legislation to Toughen Foreign Acquisition Review Process, Safeguard National Security

Reps. Maloney, Shays, Gutierrez and Frankintroduce bipartisan bill

WASHINGTON, DC - Now that the Dubai ports deal seems to be dead, members of the House Financial Services Committee want to create a stricter foreign acquisition approval process so that the United States does not go down the same road again. New bipartisan legislation (H.R. 4915) would strengthen the national security component of the Council on Foreign Investment in the United States review process. Rep. Carolyn Maloney (D-NY), Ranking Member of the Subcommittee on Domestic and International Monetary Policy, Trade and Technology; Rep. Christopher Shays (R-NY); Rep. Luis Gutierrez (D-IL); and Rep. Barney Frank (D-MA), Ranking Member of the Financial Services Committee, are the lead sponsors of this legislation.

Among other provisions to strengthen national security, the bill would:

• Add the Director of National Intelligence to CFIUS,
• Mandate a 45-day investigation and a CFIUS recommendation to the president for all acquisitions by foreign governments,
• Require CFIUS to report regularly to Congress, and
• Require CFIUS to consider the effect on critical infrastructure as a national security factor.

“If we learn one lesson from the Dubai ports fiasco, it ought to be that the review system needs a major change,” said Maloney. “Most Members of Congress were not only surprised that our ports were being sold to a foreign government, we were shocked that the deal was done under little sunlight and without any red flags being raised. The process must change.”

“The port sale issue has shined the light on the problem with our current foreign acquisition review process,” Shays said.  “It's simply common sense that national security would be a strong component of our review process when we're looking at foreign companies buying U.S. assets.”

“This legislation will help make certain that the Dubai Ports debacle never happens again,” said Gutierrez. “Our bipartisan bill will provide increased transparency, promote an open review process and ensure that foreign investments in the United States do not compromise our national security.”

“I am pleased that broad Congressional reaction has stopped the Dubai port deal, but we should not rely on an ad-hoc response to such an important matter.  I am pleased that we are now working in a bipartisan manner to revise the CFIUS process and substantially reduce the likelihood of a repeat performance,” said Congressman Barney Frank.

Click here for text of the legislation: http://www.house.gov/maloney/issues/banking/030906CFIUSbill.pdf.

Congressman Luis Gutierrez, U.S. House of Representatives  2367 Rayburn Building Washington, DC 20515  (202) 225-8203 (202) 225-7810 Fax 3455 W. North Avenue Chicago, IL 60647 (773) 384-1655 (773) 384-1685 Fax 1310 W. 18th Street Chicago, IL 60608 (312) 666-3882 (312) 666-3894 Fax

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