Failed UAE bid worries Bush

Published March 11, 2006

WASHINGTON, March 10: US President George W. Bush said on Friday that he was concerned about the ‘broader message’ that the failed port operation deal with a United Arab Emirates company sent to other Arab allies in the US war on terrorism.

“To win the war…., we’ve got to strengthen our relationships and friendships with moderate Arab countries in the Middle East,” Mr Bush told a meeting of the National Newspaper Association in Washington.

“The UAE is a committed ally in the war…. They are a key partner for our military in a critical region.”

After weeks of political debate, the UAE-owned Dubai Port World said on Thursday it would transfer its operations of American ports to a US entity.

The proposal to have an Arab state-owned company manage operations at six US ports opened a rift between President Bush and the lawmakers of his Republican Party that touched on issues such as national security, the president’s plunging approval ratings and upcoming congressional elections.

President Bush, however, said that despite the failure of the port deal, he would not pull back from relations with the UAE.

“Outside of our own country, Dubai (the emirate where the DP World is based) services more of our military ships than any country in the world,” Mr Bush said.

“We’re sharing intelligence so we can hunt down the terrorists. ... I’m committed to strengthening our relationship with the UAE and explaining why it’s important to Congress and the American people.”

Republicans in Congress said they had received overwhelmingly negative comments from constituents about the port deal, while Mr Bush had said any effort to stall or kill it would strain ties with a vital Arab ally.

On Wednesday, the House Appropriations Committee voted 62-2 to thwart the deal.

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