Dems Call Ports Acquisition a 'Backroom Deal'

March 1, 2006 — -- A "backroom deal" -- that's what House Democrats are calling the United Arab Emirates' acquisition of a company that managesoperations of six major U.S. shipping ports.

The sale of British company P&O to Dubai Ports World, a company based in the U.A.E., has raised concerns that national security could be compromised.

House Minority Leader Rep. Nancy Pelosi, D-Calif., called the $6.8 billion port deal "an example of cronyism" by the Bush administration.

"The American people don't understand why we can't operate our own ports," she said.

The six ports affected by the deal are located in New York; Newark, N.J.; Baltimore;Miami; New Orleans; and Philadelphia.

Rep. James Clyburn, D-S.C., chairman of the Democratic Caucus, said the proposed takeover had "caused a tremendous amount of anxiety among Americans."

Under pressure from Congress, Republicans and Democrats, the Dubai-based company is not expected to assume operating control of the ports until the Bush administration conducts a 45-day review of the transaction.

During that period, Democrats hope to keep the spotlight on the port security issue.

"We have to use that time to show not only the fact that it was wrong to have a backroom deal of this kind, but also to make sure the American people know who really is with them on protecting them," Pelosi said.

Rep. Bennie Thompson, D-Miss., the ranking Democrat on the House Homeland Security Committee, also promised legislation that would review any leasing of existing ports and that would make sure the "cronyism that is creeping into the existing leasing process will not go forward."

Bush said he would stand by the deal, telling ABC News in an interview, "The only way it won't happen is if there is a true security threat to the United States of America."