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February 26, 2006 Sunday Muharram 27, 1427





White House welcomes delay in UAE ports deal


WASHINGTON, Feb 25: Stung by a showdown with Congress, the White House on Friday welcomed what it said was a “slight” delay in the takeover of six US ports by an Arab firm.

Dubai Ports World, from the United Arab Emirates, said late Thursday it would hold off on US aspects of a $6.8-billion global deal while the administration consulted outraged Republican and Democratic critics.

The move eased the outcry slightly, but the White House said the deal should still go ahead and “nothing has changed” in President George W. Bush’s vow to veto any legislation blocking the transfer.

It would be helpful to have some additional time to brief members of Congress, said White House spokesman Scott McClellan.

We believe, as they learn more about the facts, that they will feel more comfortable with the transaction proceeding.

McClellan declined to say how long what he insisted what was a “slight” delay would last, saying it was up to the company when to press forward.

He did not confirm that the White House had asked for more time, but implied it had suggested such a step would be “helpful” in consultations with the company.

The proposed deal has angered critics who say it threatens port security. They also charged the White House failed to properly consult Congress.

Opponents have pointed out that some of the financing for the September 11, 2001 attacks was funnelled through the UAE.

Bush has said the deal would not go ahead if it posed a security risk, but he argued that US agencies are responsible for safeguarding US ports and that blocking the deal because the buyer was an Arab firm would send a “terrible” signal abroad.

Defense Secretary Donald Rumsfeld defended the UAE as a firm ally in the US anti-terror campaign.

Ports affected by the deal are in Baltimore, Maryland; Miami; New Jersey; New Orleans, Louisiana; New York; and Philadelphia, Pennsylvania.

The ports are currently operated by another foreign firm, Britain’s Peninsular and Oriental Steam Navigation Co (P and O).

Security analysts have long feared that foreign terror groups could exploit gaps in port security to smuggle in a bomb or weapons of mass destruction.

State-owned Dubai Ports World said it was willing to let US lawmakers have more time to study the proposed deal.

We need to understand the concerns of the people in the US who are worried about this transaction and make sure that they are addressed to the benefit of all parties, said DP World chief operating officer Ted Bilkey. Security is everybody’s business.

The acquisition of the British firm was to be finalized on March 2.

Senator Carl Levin, a top Democrat and outspoken critic of the deal, said before the delay was announced that the UAE had not earned sufficient trust to be allowed to go through with the acquisition of US ports.

Arab-American groups have warned that the controversy smacks of racism. The American-Arab Anti-Discrimination Committee issued a statement charging “rhetoric and bias” during the debate.—AFP






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