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Washington, DC -- Today during the House Financial Services Committee hearing on foreign investments in U.S. ports, U.S. Rep. Ron Klein held Administration officials accountable in the wake of the Dubai Ports Deal and in an environment of continued security concerns at our Nation’s ports.
One year after the Dubai Ports World deal fiasco, when the Bush Administration was on the verge of selling off critical U.S. ports to a foreign company based in the Middle East, the Financial Services Committee, under the leadership of Chairman Barney Frank, held hearings to discuss how the U.S. Treasury Department’s Committee on Foreign Investment in the United States can be reformed to better protect our critical infrastructure while promoting positive foreign economic investment.
In a hearing entitled “Committee on Foreign Investment in the United States: One Year After Dubai Ports World,” Klein, a member of the Subcommittee, challenged the Administration’s procedures in reviewing and approving foreign investment in the United States.
Concerned with the national security implications this deal would have had on South Florida if Dubai had been successful in its attempted purchase of the Port of Miami, Klein asked Assistant Secretary of Treasury Clay Lowery the following question: “How does the Committee on Foreign Investments in the United States (CFIUS) balance the need for foreign investment in the United States with real national security concerns?”
Lowery responded by stating that he was not aware of the security process at our ports, saying it is up to the U.S. Customs and Border Protection, the Port Authority, and the Coast Guard to handle national security concerns.
Klein was astounded that the Department charged with overseeing the foreign investment process for our ports would not have knowledge of the process for securing our ports. Klein said this is a fundamental piece of information, and expressed his concern that there is a severe lack of communication between the agencies that oversees different aspects of our port security.
After the committee hearing Klein followed, “One year later, we should be sure that the federal government is not approving sales of businesses that operate national security interests to foreign investors. I’m not certain that the Treasury Department’s process for evaluating these sales has been up to speed.”
In response to this exchange Chairman Frank asked Assistant Secretary Lowery to send a mock up to members of the Financial Services Committee of how CFIUS addresses national security concerns, and how CFIUS communicates with other agencies. This report is due before the Financial Services Committee marks up HR 556, the National Security Foreign Investment Reform and Strengthened Transparency Act of 2007, of which Rep. Klein is an original co-sponsor. | 
