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Wednesday, February 22, 2006

Bush vows ports deal will stand

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President Bush yesterday vowed to use his first-ever veto to strike any law that Congress passes to block a deal allowing an Arab state-owned company to operate six major U.S. seaports, amid growing bipartisan efforts to thwart the plan for security reasons.

"If there was any chance that this transaction would jeopardize the security of the United States, it would not go forward," the president said in a brief but firm statement on the White House South Lawn.

Mr. Bush said questioning the deal because it involves United Arab Emirates company makes no sense, given that a British company now does the job.

"I want those who are questioning it to step up and explain why all of a sudden a Middle Eastern company is held to a different standard than a Great British company. I am trying to conduct foreign policy now by saying to the people of the world, 'We'll treat you fairly,'" Mr. Bush earlier told reporters who had traveled with him on Air Force One to Washington from a Colorado event.

Republican congressional leaders, including Senate Majority Leader Bill Frist and Speaker of the House J. Dennis Hastert, among Mr. Bush's most reliable supporters, yesterday said giving operational control to a Middle Eastern country raises serious questions regarding the safety and security of our homeland.

Mr. Frist said that if Mr. Bush is unable or unwilling to delay the transaction -- which takes effect March 2 -- he would introduce legislation to "ensure that the deal is placed on hold until this decision gets a more thorough review."

Other lawmakers from liberal Democrats to conservative Republicans also have sounded alarms over allowing Dubai Ports World (DPW) to take control of ports in Baltimore, New York, New Orleans, Miami, Philadelphia and New Jersey. DPW is purchasing the company that had operated the ports, London-based Peninsular and Oriental Steam Navigation Co., for $6.8 billion.

Sen. Charles E. Schumer, New York Democrat, and Rep. Peter T. King, New York Republican, said they also will offer legislation to halt the deal, require congressional involvement and investigate the manner in which the proposal was approved.

"It's hard to believe that this administration would be so out of touch with the American people's national security concerns that it would use its first ever veto to save this troubling Dubai ports deal," Mr. Schumer said, responding to Mr. Bush's veto threat.

The port deal was approved by the Treasury Department-led Committee on Foreign Investment in the United States last month.

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