FOR IMMEDIATE RELEASE 
February 23, 2006
Contact:  Rachel Kleinman
(202) 225-3772
 

Ross Statement re: Port Deal with a United Arab Emirates Owned Company
 
(Washington, D.C.)  U.S. Rep. Mike Ross (AR-04) Thursday reacted to the sale of shipping operations at six major United States seaports to Dubai Ports World.  The United Arab Emirates (UAE) owned company recently received approval from the Administration to purchase Peninsular and Oriental Steam Navigation, a London company which manages shipping operations at United States seaports including ports in Baltimore, New York, New Jersey, Philadelphia, Miami and New Orleans. 

“As a result of September 11, 2001, our enemy has changed, our world has changed, and our approach to national security must also change.  In the post 9-11 era, homeland security and safeguarding the American public are prevalent concerns throughout America.  Not only did two of the 9-11 hijackers reside in the UAE, but a majority of the funding for the attacks came from a UAE owned bank.  Unbelievably, the President has threatened to use veto authority for the first time in his presidency on proposed legislation intended to delay the sale and ensure the safety of the American public.  

“The Committee on Foreign Investment in the United States (CFIUS) failed to include basic evaluations, such as background checks of senior managers of Dubai Ports World or a study of how the company screens its workers, and recommended agreement approval to the White House without an in-depth investigation of the company.  Furthermore, I find it appalling a decision of this magnitude that directly impacts major U.S. cities on both the Eastern seaboard and on our Gulf Coast, was made without the President having any prior knowledge of the agreement, which he openly admitted this week.

“Our government has a responsibility to protect its citizens by thoroughly evaluating an agreement with a company owned by a nation known to have ties with 9-11 terrorists.

“This is not a Democratic issue or a Republican issue.  Members of Congress on both sides of the aisle are calling on the Administration to delay the sale until a thorough investigation has been conducted.  America continues to exist in a state of elevated security threats and we must not rush into a situation that could jeopardize national security or the safety of the American people.  We should utilize the channels instituted by Congress in 1975 to thoroughly review the proposed transaction instead of blatantly bypassing them.

“This sale of operations of United States seaports to a company owned by the UAE should be delayed until all security concerns by both the Administration and Congress have been sufficiently addressed and the American public can rest assured this sale will not hamper national security or public safety,” said Ross.

In 1975, Congress created the Committee on Foreign Investment in the United States (CFIUS) and established a process to thoroughly review foreign investment which included a 30-day review followed by a 45-day investigation if deemed necessary.   CFIUS found no security threats in their initial 30-day review of the port deal with Dubai Ports World and sent their recommendation for approval to the Administration.  Subsequently, the agreement received the necessary White House endorsement to complete the sale without conducting an in-depth 45-day investigation.   


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