Bush defends sale of US ports to Arab nation

President Bush today strongly defended plans to allow a company controlled by the United Arab Emirates to assume management of key U.S. ports, a stance that distanced him from a growing number of Republicans, including the congressional leadership that has threatened to pass legislation to stop the move.
In a 20-minute impromptu meeting he called with reporters aboard Air Force One, Bush said he would veto any legislation to hold up the port deal. He warned that if the United States derailed the deal, it would send "mixed signals" because no criticism was raised when a British company was in charge. Lawmakers, he said, must "step up and explain why a Middle Eastern company is held to a different standard."
The president's comments on the way home from a speech in Colorado came shortly after Senate Majority Leader Bill Frist called on the administration to review its approval of the $6.8 billion sale of a British company that operates six U.S. ports to a company controlled by the United Arab Emirates.
Frist (R-Tenn.) said if the administration didn't reexamine the issue, he would introduce legislation to block the transfer.
"The decision to finalize this deal should be put on hold until the administration conducts a more extensive review of this matter," Frist said in a statement. "If the administration cannot delay the process, I plan on introducing legislation to ensure that the deal is placed on hold."
Also today, House Speaker Dennis Hastert (R-Ill.) raised concern about the deal and urged the administration to "conduct a more thorough review." Without offering details, Hastert said in a letter to Bush that "this proposal may require additional congressional action in order to ensure that we are protecting Americans at home," the Associated Press reported.
But Bush was direct in his response. "They ought to listen to what I have to say about this," the president said after inviting pool reporters on his plane back to his compartment to talk. "They ought to look at the facts, and understand the consequences of what they're going to do. But if they pass a law, I'll deal with it, with a veto."
Bush said he did not consider this a political fight and stressed that he felt the sale had been carefully vetted for security concerns.
"This is a process that has been extensively reviewed, particularly from the point of view as to whether or not I can say to the American people, this project will not jeopardize our security," he said. " . . . I really don't understand why it's okay for a British company to operate our ports, but not a company from the Middle East, when our experts are convinced that port security is not an issue."
Bush repeated his concerns for television cameras as he arrived back at the White House.
Frist and Hastert are the latest lawmakers to express concerns about the administration's approval of the sale of Britain's Peninsular and Oriental Steam Navigation Co., commonly known as the P & O Co., to the UAE's state-owned port company, Dubai Ports World.
The Committee on Foreign Investment in the United States, which has representatives of 12 U.S. agencies that review foreign takeovers of U.S. companies or possible risks to national security, examined the implications of the sale on U.S. ports and approved the transaction.
Last week seven Democratic and Republican members of Congress said the deal should be looked at again, citing security concerns. They noted that the United Arab Emirates is an ally of the United States, but they said that that some of the hijackers involved in the Sept. 11, 2001, attacks traveled through the UAE and its banking system has been used by groups affiliated with al Qaeda.
In addition, two Republican governors, New York's George Pataki and Maryland's Robert L. Ehrlich Jr., yesterday expressed concern about the sale and said they would consider canceling lease arrangements at ports in their states.
In the deal, DP World would control most operations at ports in New York, New Jersey, Philadelphia, Miami, Baltimore and New Orleans.
Defense Secretary Donald H. Rumsfeld told reporters at a Pentagon briefing today that the U.S. Coast Guard would remain in charge of security at those ports.
"I'm told that nothing changes with security," Rumsfeld said when asked about the security concerns. "Our Coast Guard are the ones who make judgments about the security of the port."
National Security Council spokesman Fred Jones said it is "totally misleading to say this is about port security or port ownership." He said the "U.S. would never outsource security to another entity."
Secretary of State Condoleezza Rice said Feb. 17 that it was the "considered opinion of the U.S. government that this can go forward."
James Zogby, president of the Arab American Institute, said Frist and other lawmakers were "playing on fear and racism" in trying to stir up opposition to the deal.
"The rhetoric these lawmakers have used is so shameful, so irresponsible, so fraught with danger for our country, our image in the world and our ability to do business around the world," Zogby said in a phone interview from Saudi Arabia. He said Dubai was an ally of the United States that deserved far better treatment.