Port Deal Delayed

Feb. 27, 2006 — -- This morning, the White House and Congress can claim a partial victory as a United Arab Emirates' company delays a takeover of operations at six U.S. ports while the administration conducts a 45-day security review. The deal was brokered between the White House, congressional officials and the company.

"We believe … the additional time and investigation will provide Congress with a better understanding of the facts and … will be comfortable with the transaction moving forward," the White House said in a statement.

Critics of the deal say that the UAE has questionable relationships. Two of the Sept. 11, 2001, hijackers came from the UAE and many of the hijackers traveled to the United States though that nation. In addition, the UAE is one of three governments that recognizes the Taliban. But some have charged that the fervent opposition really stems from racism, not security concerns.

"The opposition stems from the fact that the UAE has a relationship, a nexus with terrorism," said Sen. Charles Schumer, D-N.Y., a member of the Senate Banking Committee, which is holding hearings on the ports deal later this week. "If this was Chechnya, if this was East Timor, we'd have the same veracity."

Schumer said he was concerned that the deal would make it easier for enemies to infiltrate the port system.

If the deal goes through, the company, Dubai Ports World, would control terminals in six major ports -- New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia -- and 40 million tons of cargo a year. Earlier this month, Dubai Ports World bought London-based Peninsular and Oriental Steam Navigation Co. for $6.8 billion. The British company previously controlled the ports.

A bipartisan group of senators, led by Schumer, plans to introduce emergency legislation today that would give Congress, not the administration, the final say on whether the deal goes through. When he announced the bill, Schumer said the legislation wouldn't be necessary if the government decided to conduct an investigation on its own.