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Snuffysmith
http://www.wpherald.com/storyview.php?Stor...02-114505-5538r
Dubai military supplier under U.S. probe
By UNITED PRESS INTERNATIONAL
Published March 2, 2006


WASHINGTON -- Amid the outcry over a Dubai company managing U.S. ports, the Bush administration has ordered a review of a Dubai precision military supplier.

In a striking similarity to the port management acquisition, the Committee on Foreign Investment in the United States is investigating the security implications of Dubai International Capital's $1.2 billion acquisition of London-based Doncasters Group Ltd., which makes precision components used in engines for military aircraft and tanks, The Washington Post reported Thursday.


As well, CFIUS is examining an Israeli company's plans to buy the Maryland software security firm Sourcefire, which does business with Defense Department agencies.

There is bipartisan opposition to the administration's approval last month of a $6.8 billion deal to allow Dubai Ports World based in the United Arab Emirates to manage operations at six U.S. seaports from a British company.

Last weekend, the company agreed to a 45-day investigation to allay concerns of a possible breach of U.S. port security.
Snuffysmith
From the Los Angeles Times
Poll Finds Americans Overwhelmingly Disapprove of Port Deal
By Ronald Brownstein
Times Staff Writer

4:32 PM PST, March 2, 2006

WASHINGTON — Americans, by a greater than 3 to 1 margin, oppose the proposed deal that would allow a state-owned Arab firm to assume control of operations at several U.S. ports, a Times/Bloomberg poll has found.

The takeover, undergoing a 45-day review by administration officials, faced broad opposition — substantial majorities of Democrats and independents, along with a solid plurality of Republicans said they do not want the agreement to proceed.

Buffeted by resistance to the port transaction and discontent over the turmoil in Iraq, President Bush's approval rating fell to 38%, the lowest level recorded for him in the poll. His disapproval rating rose to 58%.

And in a trend that could affect turnout in the November midterm elections, Bush confronts what might be called an intensity gap: the percentage of Americans who said they strongly disapprove of his performance on a wide range of issues greatly exceeded the share who strongly approve.

The Times/Bloomberg Poll, supervised by Times Poll director Susan Pinkus, surveyed 1,273 adults nationwide from Saturday through Wednesday. The survey has a margin of sampling error of plus or minus three percentage points.

Support for Bush has slipped since a Times/Bloomberg poll in January, when 43% said they approved of his performance while 54% disapproved.

Debbie Davis, a Republican in Middleport, Ohio, who responded to the new poll, remains positive on Bush. "He does a good job," the sales representative said. "He has just been put in tough situations."

Beverly Greenwald, a Democrat in Atlanta, expressed the intensity of the many Bush critics in the survey. "He's an incompetent, ignorant man who looks for simple answers to complex issues," the psychotherapist said. "He shouldn't even be allowed to run a small Texas town."

In the new poll, 43% of independents, 12% of Democrats and 77% of Republicans rated Bush's performance positively. Since January, that represents a slight improvement among independents, virtually no change among Republicans, and a decline among Democrats.

Also contributing to the fall in Bush's approval ratings was a slight increase in the number of poll respondents who identified themselves as Democrats.

"Party identification is a dynamic variable that changes with the popularity of the party in control," said Pinkus. "The proportion of people who identified with the Republican Party was higher when Bush had more positive approval ratings."

The findings on job approval in the Times survey were virtually identical to the results in two other polls released Thursday. A poll by Quinnipiac University in Hamden, Conn., found 36% approved and 58% disapproved; in a CNN/USA Today/Gallup Poll, the numbers were 38% and 60%.

Earlier this week, in an interview with ABC News, Bush brushed off surveys showing a drop in his standing. "I've been up in the polls and I've been down in the polls," Bush said. "You know, it's just part of life in the modern era."

In the Times poll, majorities disapproved of Bush's performance in dealing with each of four issues measured: the economy, the federal budget deficit, Iraq and terrorism.

Amid searing sectarian violence in Iraq, 34% said they approved of Bush's handling of the conflict, down from 41% last month. The new results are, by far, the lowest ratings on the war recorded for Bush in a Times poll.

On the economy, 37% approved of Bush's performance, while 60% disapproved. On the federal budget deficit, the figures were 24% approval and 67% disapproval. Also, just 19% said the economy "is better off" because of Bush's policies, while 52% said his ideas had hurt the economy.

Perhaps most striking, 44% said they approved of Bush's handling of terrorism, while 54% disapproved — the first time a majority has expressed a negative opinion about his handling of that issue in a Times survey.

One explanation for the results may be the public resistance to the deal under which Dubai Ports World, headquartered in the United Arab Emirates, would assume control of port operations in six U.S. cities from the London-based Peninsular & Oriental Steam Navigation Co.

Bush has staunchly defended the transaction, but under intense bipartisan criticism from House and Senate members, he agreed last month when the Dubai company asked for the additional review by administration officials. The review is examining whether the takeover would lessen security at the ports.

In the new poll, more than three-fifths of those who oppose the deal gave Bush poor grades for his performance on terrorism; conversely, more than three-fourths of those who favor the transaction approved of his handling of the terror threat.

The Dubai deal faced opposition from virtually every broad segment of Americans. Overall, just 17% of those surveyed said they supported the agreement, while 58% opposed it; the rest said they did not know enough to express an opinion.

Reacting to the finding, Sen. Lindsey Graham (R-S.C.) said, "The politics of this are not good. The process [for evaluating such deals] seems to be broken, and we need to fix it."

White House spokesman Trent Duffy acknowledged that the public concern about the transaction "matters" to the administration. "That's why the [new review of the deal] is a healthy thing that is going to provide more information to the public and to lawmakers," Duffy said.

Men were more likely to support the deal than women, and those with college degree more likely than those without. But majorities of all four groups were against it.

Over three-fifths of those surveyed in the East, Midwest and South disapproved of the deal; it drew somewhat more backing in the West. Even in that region, it was opposed, 45% to 26%.

Democrats opposed the deal by almost 10 to 1, independents by nearly 4 to 1.

Donna Crawford, a Democrat in Huntington, N.Y., said she worries that allowing the takeover could increase the risk of war if the Dubai-owned company were to facilitate a terrorist plot.

If the deal goes forward and "perchance [company employees] do ship something over here" as part of a plot, Bush "will start another war," she said.

Especially troubling for the White House may be resistance to the deal among core Bush supporters.

A majority of Republican women and a slight plurality of GOP men said they were against the takeover; overall, Republicans opposed it, 49% to 29%.

Andrew Craft of Houston was among the Republicans satisfied with Bush's contention that the United Arab Emirates was a strong ally in the war on terrorism and that the Dubai company could be trusted with port operations.

"After looking more into it, I'm not as afraid anymore," said Craft, a financial analyst.

Disagreeing was Marie Matthews, a Republican in Charlotte, N.C. "I don't think it's a good idea," said Matthews, a stay-at-home mother. "I think we should be able to retain control."

Politically, the most troubling finding for Republicans in the survey may be the intensity gap evident on many questions. The Republican victories in the 2002 and 2004 elections derived largely from Bush's ability to generate a huge turnout of hard-core Republicans passionately committed to him.

But in the new survey, Bush is generating much more ardor in opposition than support. That could affect turnout in the November elections that will decide control of Congress.

A striking 43% of voters said they strongly disapprove of Bush's overall performance, more than double the 19% who strongly approve. Among women, a 47% plurality now strongly disapprove — almost triple the 18% who strongly approve.

Similar patterns hold on each of the four issue areas where voters were asked to rate Bush's performance. Those who strongly disapprove of his performance on the federal budget outnumber those who strongly approve by nearly 5 to 1. On Iraq the proportions are nearly 3 to 1; on the economy more than 2 to 1.

Even on terrorism, 41% of those polled said they strongly disapprove of his performance, compared to 28% who strongly approve.

Likewise, strong opponents of the ports deal outnumber strong supporters by an emphatic 6 to 1.

Democratic pollster Guy Molyneux said all these disparities create the potential that Democrats could turn out in higher numbers than Republicans in the November elections. "The people who don't like [Bush] are really locked in and that has consequences," Molyneux said.

Times staff writers Richard Simon and Matthew O'Rourke contributed to this report.
Copyright 2006 Los Angeles Times
Snuffysmith
http://www.telegraph.co.uk/money/main.jhtm.../ixcitytop.html
UAE warns of threat to investments in political row
By David Litterick in New York (Filed: 02/03/2006)


The US could lose a host of much-needed inward investment as foreign countries disturbed by the row over the control of US ports look elsewhere to invest money.



The economy minister of the United Arab Emirates, the country at the heart of the row, said that while political pressure to block the deal would not prevent the Gulf state from seeking further investments in the US, it would likely give other countries pause.

Sheikha Lubna al-Qassimi said other markets in Asia and Europe would now prove more attractive to wealthy Arabs and other investors.

"There is no hesitation, this will not deter the UAE from investing further. This is a business deal that somehow got politicised. But when you have deals that are prolonged by interference of a political nature, it may encourage many countries to go into investments in other places." She said India, China and some countries in Europe would be the likely beneficiaries.

The US is running a massive current account deficit and relies on inward investment to finance it. It has been able to count on petrodollars from countries like Saudi Arabia as a result of the booming world oil market. However, Middle Eastern investors are thought to be becoming jittery.

Hany Hussein, fund manager at Mashreqbank in Dubai, said: "Political risk is there in varying degrees in any transaction. But in this case one can ask 'Would this have happened if Dubai Ports World had not been an Arab company?'"

President Bush has been a staunch defender of the deal, which would see DP World assume control of operations at six US ports following its takeover of P&O. However, politicians have claimed it would be a threat to national security.

The sides have agreed to a fresh 45-day review but DP World has pledged to complete the deal, subject to a ruling in the High Court in London today. "It has certainly reinforced the perception here that Arab investors can be singled out," said Steve Brice, head of Middle East research at Standard Chartered bank in Dubai.

Ironically, the comments came as US commerce secretary Carlos Gutierrez travelled to Saudi Arabia to urge the country to be more welcoming to foreign investment.

The High Court is expected to rule on whether to allow the scheme of arrangement that will seal the $6.8bn merger, after hearing arguments from Eller & Co, a Miami joint venture partner of P&O which claims the deal will adversely affect its business.

Federal courts in the US are due to hear representations from the port authorities of New Jersey, which want the deal blocked.
Snuffysmith
Dubai Port Deal Is Delayed Over Protest
By JANE WARDELL, AP Business Writer
Fri Mar 3, 12:40 PM ET

A Miami company objecting to the takeover of British shipping company P&O by Dubai's state-owned DP World said Friday it has been granted the right to take the case to Britain's Court of Appeal — a move that puts the deal on hold.

Miami-based Eller & Co., which says its business could be harmed by U.S. concerns over a United Arab Emirates company controlling significant operations at six major U.S. seaports, said Britain's Court of Appeal would hear its petition for an appeal on Monday.

If the right to appeal is granted, the higher court will immediately hear the case.

"We don't take the decision to appeal lightly," Eller said in a statement issued in London. "However, we are deeply concerned for the future of our business and the livelihood of thousands of our staff and contractors and we will do everything in our power to secure their future."

P&O runs shipping terminals in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia — a fact that has caused an uproar among lawmakers and businesses in the United States concerned about an Arab company taking over the ports.

DP World has attempted to defuse some of the tension by submitting itself to a second 45-day investigation by the U.S. government, despite already receiving regulatory approval for the deal.

The 3.9 billion pound ($6.8 billion) acquisition of the Peninsular and Oriental Steam Navigation Co. needs approval by the High Court — approval that was granted Thursday by Justice Nicholas Warren.

However, Warren placed a hold on his ruling to allow Eller to take the case to the higher court, and it will not become effective unless the Court of Appeal refuses to hear the case.

Lawyers for DP World have warned that a delay beyond Friday means the company will not be able to access the millions of dollars it needs to pay shareholders on time. The deal was previously scheduled to be completed Thursday.

Both P&O and DP World will incur hefty costs while the case drags on and lawyers have said they intend to pursue Eller for the High Court costs when the appeal is decided.

P&O noted that Warren refused to grant Eller the right to appeal — but allowed the company to approach the higher court directly — because he believed it had little chance of success.

"The boards of P&O and DP World remain confident of concluding the transaction on the agreed terms," the shipping firm said in a statement.

President Bush has supported the takeover deal and lawmakers initially opposed seem to have softened slightly, tempering calls for an immediate vote to block the takeover. Many said the new probe reassured them and negated the need for legislation for now.

A U.S. federal judge has also ruled against a request by New Jersey to order an investigation into the takeover.

Warren said in his ruling Thursday that U.S. concerns about port security and threats of port authorities withdrawing business were partly fueled by Eller and that he did not find them credible.

He also dismissed Eller's claim that P&O allowed a series of procedural failings during the bid process, including the misdirection of letters to shareholders in Australia that left them uninformed about crucial meetings.




Copyright © 2006 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.


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Snuffysmith
March 4, 2006
Officials Say Port Company Faces More Intensive Review
By ERIC LIPTON and DAVID E. SANGER
WASHINGTON, March 3 — The deeper review promised by the Bush administration of a Dubai company's plan to take over some terminal operations at several American ports will include inspections at the ports, background checks on employees and an examination of the efforts of the United Arab Emirates to fight terrorism, senior officials said Friday.

"This is a full review without preconceptions," Stewart A. Baker, an assistant secretary of homeland security, said in an interview. "We are going to give this transaction a very robust examination."

The details reflect what Mr. Baker and other officials described as a commitment to broaden significantly an initial review that gave the go-ahead to the acquisition, but whose conclusions have been challenged by the governors, mayors and members of Congress.

The plan to re-examine the deal was drafted this week after the company, DP World, bowed to the criticism by agreeing to resubmit its application to manage terminals in six cities. On Friday, a bipartisan group of senators demanded that they be kept fully informed of the process.

"The administration must know that we stand united to examine and review this deal independently," said the letter, signed by five Democrats and five Republicans, including Charles E. Schumer, Democrat of New York, and Norm Coleman, Republican of Minnesota.

The inquiry will be fundamentally different from the first assessment, Mr. Baker and other senior administration officials said. In the first review, federal agencies were asked whether they knew of troubling information about the company. In the new review, investigators will be sent out to seek information.

The 45-day inquiry will result in a report to be submitted to President Bush, who will have to approve the transfer or reject it, the officials said. The initial 30-day inquiry, completed in January, was conducted by a lower-level group headed by Deputy Treasury Secretary Robert M. Kimmitt.

Mr. Bush has made it clear that he continues to support the transfer, saying this week, "My position hasn't changed."

That puts the administration in the position of simultaneously trying to convince Congress that it is conducting a legitimate investigation without digging so deeply that it raises new concerns that might jeopardize the deal, security experts said. Some questioned whether the review could truly be impartial.

"There is no way they are going to come up with a different answer," said David Heyman, a former Clinton administration official and director of the Homeland Security Program at the Center for Strategic and International Studies. "Even if they overlooked something, I can't imagine they would not find a way to correct it to make sure it can go forward."

Even before the second review starts, administration officials said, Coast Guard inspectors have visited the terminals currently run by the Peninsular & Oriental Steam Navigation Company, the British company that is selling its terminal business to DP World. In coming days, the Coast Guard plans to inspect DP World operations in the United Arab Emirates, home of Dubai, specifically to determine whether antiterrorism security rules are being enforced in ports there.

"It will be thorough, it will be impartial, and it will ask just one question — what is right for the nation's security, including our ports' security," Mr. Kimmitt said.

In a statement on Friday, DP World said it had formally submitted its request for the new review.

The Treasury Department is charged by the law that governs reviews of foreign investments in the United States with leading the inquiry. A senior administration official who insisted on anonymity because of the nature of the investigation, said it might be a matter of days, and maybe a week or more, before the 45-day review started.

"We are assessing this entirely anew," the official said. "And it is important that we follow the right process."

The nature of the involvement by agencies with counterterrorism units like the Central Intelligence Agency and the Coast Guard has not been made public.

But Mr. Baker said the U.A.E. responses to terrorism threats would certainly be part of the new inquiry.

"It is appropriate to examine the government record, as well as the company record," Mr. Baker said.

Senator John W. Warner, Republican of Virginia, and Senator Carl Levin, Democrat of Michigan, the two leaders of the Senate Armed Services Committee, are jointly considering requesting a comprehensive evaluation of the emirates similar to the National Intelligence Estimates that assess foreign governments and potential threats to the United States.

John D. Negroponte, the director of national intelligence, testified to senators this week that it might not be politically possible to prepare such a formal assessment, but that he was open to answering whatever the questions the committee had.

Among the questions that will likely be examined is what Dubai has done to prevent terrorists from using financial institutions in the United Arab Emirates, as occurred before the Sept. 11, 2001, attacks, and to prevent its ports from being used as transfer points by weapons smugglers, as occurred in 2003, when equipment critical to constructing a nuclear bomb moved through Dubai on the way to Libya.

Mr. Baker said officials intended to perform background checks on employees at the American terminals to see whether any are on a terrorist watch list. He said the background reviews would rely on an agreement already reached with the company to provide a list of employees at terminals that it intends to run here, including dates of birth and Social Security numbers.

Domestic security officials also intend to interview port officials in cities where DP World would run terminals, Mr. Baker said.

He would not say whether the administration was considering requesting that DP World, which is controlled by the emir of Dubai, create a private subsidiary for its American operations. That would allow the company to avoid concerns about having a government-controlled company managing American terminals.

Company executives said that there had been no discussions about such a move and that they planned to wait for the 45-day review before considering such an option.



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Snuffysmith
March 5, 2006
Op-Ed Columnist
It's Not Isolationism, but It's Not Attractive
By DAVID BROOKS
This was going to be a column on the growing isolationism of the American people. I was going to argue that in the post-Iraq era, the quickest way for an unprincipled cynic to get to the White House is by running as a smiling Democratic-Buchananite.

Attack the Dubai ports deal to burnish your security credentials. Call for less foreign adventurism and more spending at home to win the Democratic base. Go hard against illegal immigration to win the working class. Rail against China and free trade deals to build support in the Midwest. Bash France just for the fun of it. Bingo! You're cruising to Inauguration Day.

Unfortunately, before I had finished that column, I looked at the facts. The bulk of the evidence suggests there is no rising tide of isolationism in this country, even with the bloodshed in Iraq.

A polling analyst, Ruy Teixeira, has taken the closest look at the data over at his Web site, Donkey Rising. Teixeira argues that instead of seeing a turn to isolationism, what we are seeing in poll after poll is public opinion returning to normal post-World War II levels, after the unusual 9/11 blip.

Much of the isolationist talk started when a Pew survey found that 42 percent of Americans believe that the U.S. should mind its own business internationally, a 12-point rise over three years. But Teixeira points out that the 42 percent number puts Americans back where they were throughout the Clinton years, when Americans supported more foreign interventions than ever before.

Meanwhile, the rest of the evidence shows high engagement in foreign affairs. Public support for multilateral action remains phenomenally strong. Support for foreign aid is higher than it's been. International issues like global terrorism remain among Americans' top concerns.

Attitudes toward economic globalization are, if anything, more positive than they have been historically. In 1953, 54 percent of Americans favored free trade. In 2000, 64 percent of Americans said free trade was good for the U.S. In 2004, 64 percent said globalization was good for the U.S. and 65 percent agreed international trade was good for "your standard of living."

In the late 1940's, Americans were asked if the U.S. should be active abroad or stay out of world affairs. Back then, during the heyday of American internationalism, 69 percent said the U.S. should be active abroad. Today, the share of people who say that is the same: 69 percent.

On the Republican side, there has been no surge of Pat Buchanan-style paleoconservatism. On the contrary, the influence of Reagan and Bush, and the growing evangelical interest in foreign affairs, have virtually eliminated isolationism from the Republican Party, its traditional home. Meanwhile, the likely Democratic presidential nominee is Hillary Clinton, who has been barely distinguishable from John McCain on foreign policy matters (aside from her ports pandering).

In short, Iraq, in this sphere as in so many, is not Vietnam. The Vietnam War caused America to swing from extroversion to introversion. The Iraq war has a different dynamic.

That's because in the late 1960's, the Vietnamese were not going around the world carrying out suicide attacks. Vietnamese were not rioting over cartoons. The Vietnamese did not fly planes into skyscrapers. The current conflict has an element of existential menace Vietnam did not have.

Thus the chief effect of Iraq is not to move the U.S. toward isolationism; it has been to shift American opinion from one form of internationalism to another.

George Bush's brand was based on the premise that Arabs aren't very different from anybody else, and can be brought into the family of democratic nations. This brand is, sadly, fading.

The rising internationalism is based, by contrast, on Arab exceptionalism. This is the belief that while most of the world is chugging toward a globally integrated future, the Arab world remains caught in its own medieval whirlpool of horror. The Arab countries cannot become quickly democratic; their people aren't ready for pluralistic modernity; they just have to be walled off so they don't hurt us again.

People won't express such quasi-racial views directly to pollsters, but the attitude shows up in the mammoth reaction to the Dubai ports deal, in the spike of people who want the U.S. to eliminate its dependence on Middle East oil, in the reaction to the cartoon riots. A similar attitudinal shift is evident in Europe — in spades.

As I tried to argue in a column about the ports deal, this reaction is a crude overgeneralization, but it's there. As the election season progresses, voters are going to pull candidates in a gritty, bloody-minded direction. No more uplifting talk about freedom. Soon the contest will be over who can be toughest on the crescent menace.

America isn't growing more isolationist. Americans are going to be happy to integrate with the world, just not with the Arab world.



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Snuffysmith
http://www.nydailynews.com/front/story/396685p-336188c.html
Dubai & Dubya in dash for lifeboat

Bush team urges firm to get a U.S. partner



BY THOMAS T. DeFRANK and KENNETH R. BAZINET
DAILY NEWS WASHINGTON BUREAU

WASHINGTON - The White House is quietly pushing a Dubai company to "significantly restructure" and partner up with a U.S. outfit to keep the port deal from sinking, sources told the Daily News yesterday.
"It's in the hands of the company now. ... They're going to have to significantly restructure," said a Republican source familiar with White House expectations.

A revamped deal to allow Dubai Ports World to take over six major U.S. ports - including Manhattan's cruise ship terminal and Newark's container depot - would have to be something along the lines of the Marine One contract.

British- and Italian-owned AgustaWestland had to take on Maryland-based Lockheed Martin to win the contract to build the President's helicopter last year.

"A lot of people are talking about this, a subsidiary or a deal like that," a congressional source confirmed.

One snag to such a deal may be that sources say the U.S. company best equipped to partner with DP World is Halliburton, once headed by Vice President Cheney.

After undergoing so much scrutiny for its no-bid Iraq contract and the handling of some of its duties there, Halliburton may not be able to help DP World land the deal, a source admitted.

According to the source close to the White House, Team Bush believes that in addition to clearing an extended 45-day review, DP World will have to come up with a deal that will pass muster with Rep. Peter King (R-L.I.), chairman of the House Homeland Security Committee.

King is seen as a key lawmaker because he broke with the White House over the Dubai deal despite his strong relationship with President Bush and top aides like Karl Rove.

"Speaking for myself, in addition to a rigorous investigation, it's important to look at having an American company administer the contract, and DPW would have to be totally separated out from the U.S. company in terms of access to information that the company would have or could acquire," King told the Daily News.

"Even then, the administration would have a tough time selling it, but that is a place to work from," King added.

White House spokesman Ken Lisaius referred all calls to DP World. A spokesman from DP World had no immediate comment.
Snuffysmith
http://www.counterpunch.org/

The Dubai Ports Purchase: National Insecurity, Imported or Homegrown?
By ALEXANDER COCKBURN

Americans are in a fever about possible "Arab control" of mainland ports along both coasts of the United States. The battle has followed entirely predictable lines: on the one hand, those favoring the Dubai Ports purchase point out that this is all part and parcel of being part of the international world economy, and there's no evidence that the transaction and the new owners might in any way compromise the internal security of the U.S. mainland. On the other hand, foes of the deal shout that the Arabs will be tightening their grip on the nation's windpipe and legions of terrorists and terror weapons might be stowed in the containers that land in America each day by the hundreds of thousand.

Back in the early 1970s, at the time of the oil embargo, there was even greater thundering here about the Arab grip on the American economy. Never a day went by but that the newspaper cartoons would show burnous-clad sheikhs chuckling fiendishly as they choked off America's gas pumps. Today's row over the ports is tepid by comparison.

The whole storm is ludicrous. When it comes to America's national security and penetration of the mainland by foreign capital, there are bigger worries. This very week, the week of the Chicago Auto Show, the widely read magazine Consumer Reports lists the ten safest cars sold in America this year. They are all Japanese, mostly Hondas, and mostly made in U.S.-based plants put up after Japanese and other foreign automakers were welcomed in by the U.S.A. thirty years ago, partly as a way of undercutting the Union of Autoworkers. This same month the headlines here have been full of stories about the collapse of the top two U.S. automakers--General Motors and Ford--in the face of foreign competition. Well over 100,000 American workers are to lose their jobs, thus vastly increasing U.S. insecurity. Hundreds of thousands more U.S. workers have already lost their jobs to India, China, Mexico, and other low-wage nations because that is the way American business, backed by the U.S. government, wants it.

After all, "national security" means Americans' physical security and ability to enjoy liberty and pursue happiness. Since both Democrats and Republicans in government have claimed wrongly that this security will be enhanced by exporting jobs, they should be in the dock for increasing national insecurity. The fact that the fruits of these exported jobs come back in the form of commodities reimported to the U.S.A. in containers that might or might not be handled by foreign-owned stevedoring and port management companies is a miniscule issue by comparison, far less serious even than the illnesses caused to Americans living near the ports who have to endure the pollution caused by the diesel fumes from thousands of large 18-wheel trucks lined up each day to haul the containers away.

Worries about port security back in the 50s and 60s were not aimed at Arabs, but at Communists and labor unions. Elia Kazan's famous movie, On The Waterfront, starring Marlon Brando, had the dock-control wars between unions and mobsters as a major theme.

Back in the Second World War, the U.S. Navy had port security as an obvious major concern. This was a time when special cargoes of war matιriel for the planned invasion of Europe were being dispatched to Great Britain and to North Africa. The Navy was worried not only about sabotage, but also about work stoppages and strikes--particularly the efforts of Harry Bridges, the Australian-born union organizer with close ties to the Communist Party, who had led the 1934 general strike on the docks in San Francisco.

The Justice Department was busy trying to deport Bridges when he showed up on the East Coast in 1942, traveling between Boston and New York, encouraging the dockworkers to abandon the mob-infested International Longshoremen's Association and join his International Longshoremen and Warehousemen's Union.

The Navy men fixed up meetings with top gangsters Meyer Lansky and Lucky Luciano to plot out the logistics of what the Navy was so eager to get--namely, a Mob order to dockland to cooperate with the anti-sabotage (which was also code for union organizing) effort. Luciano told Lansky to contact Johnny "Cockeyed" Dunn, the boss of the Hudson River docks and Luciano's strongman in the International Longshoremen's Association; the Camarda brothers, overlords of the Brooklyn waterfront; Mikey Lascari, Luciano's boyhood pal who handled the New Jersey operations; Frank "the Hands" Costello, Luciano's political henchman; and Albert Anastasia, the CEO of Murder, Inc., who would take care of anyone who got out of line. "You go up," Luciano told Lansky, "and mention my name and in the meantime I will have the word out and you won't have no difficulties."

Not for the last time there was a confluence of interest between criminal and intelligence organizations to crush radical unions. We will see the same story repeated in Shanghai and in postwar Italy and France. In abetting crime/drug cartels and crushing independent political movements or unions, the CIA and its forebears never hesitated for a moment to make common cause with criminals.

Bridges' planned strike was duly broken by Mob goons under the supervision of Lanza and Albert Anastasia, a man Luciano described as being "willing to kill anybody who came to mind that he got mad about." When Bridges showed up at an organizing rally in New York City a few weeks later, Lanza handled matters personally. "I had a fight with him," recalled Joey Lanza. "I belted him, and that was that." Between 1942 and 1946, there were twenty-six unsolved murders of labor organizers and dockworkers, presumed murdered and dumped in the river by the Mafia, working in collusion with Naval Intelligence.

On the larger issue of control of the docks and national security, if one had to draw a balance sheet on who benefited the most from the Naval Intelligence/Mob partnership, the answer would surely be the gangsters. In the first place, the partnership proved fatal to honest labor organizing and left union locals on the Eastern seaboard, along with the ILA, ravaged by gangsterism and corruption. And the alliance with the gangsters established by Naval Intelligence led the way to the postwar alliance between the CIA and the Mob. Luciano was enlisted to persuade the Italian and French mafias to attack the powerful dockland Communists in those two countries. The payoff for the Mob was freedom to import cocaine and heroin into the U.S.A. In the short and the long run, that contributed to national insecurity in a very, very big way. There's no blaming the Arabs for that one. The trouble was homegrown.

Footnote: the saga of the US Navy's involvement with the Mob, and the deal between the OSS--later CIA--and Luciano is laid out in detail in Whiteout:The CIA, Drugs and the Press, a very fine book by Cockburn and St Clair, which recently hit the charts as the number 5 bestseller in Italy under the title Il Libro Nero Della Polvere Bianca (Nuovi Mondi).



The Fall of Mohu:
Demolisher Says Her Son Did the Right Thing When He Knocked Down Kay Graham's Beloved Martha's Vineyard Home. On to Monticello!

Bill Graham's leveling of his mother, Katharine Graham's big house in Martha's Vineyard, which I described here last week, has elicited some sharp criticism from the man who actually supervised the leveling. John Abrams says this was no orgy of destruction by an angry son who saw the shade of his powerful mother shimmering above the rambling mansion from his own home on the property and bellowed for the bulldozers to roll. To the contrary, Abrams cliams, this was a considerate act of "de-construction" in which a white- elephant inheritance was taken delicately apart , its timbers, doors and windows taken off to storage against the day that they will be used in low-income projects elsewhere in Martha's Vineyard. On the site of the old house, stone chimneys remain as landmarks, with the square footage that once echoed to the chink of Martini glasses and the laughter of the East Coast elites now sown with native grasses. B. Graham, Abrams argues, deserves the highest praise for footing the bill (paid in large part to Abrams and his South Mountain Company) for "de-construction".

The Abrams line was faithfully echoed, with ample quotation of Abrams by Phyllis Meras in the Martha's Vineyard Gazette for July 1, 2005. Meras achieved the amazing feat, in a 2000-word piece about the leveling of one of the island's best known historic homes, of never once addressing the matter of exactly why a son should suddenly decide to knock down the house his mother left to him, and never once citing opinions other than Mr Abrams'. The article was actually awarded a prize by some foolish Massachusetts organization.

Suppose that when G.W.H. and Barbara Bush finally depart this world, they leave Kennebunkport to G.W. and Laura, who promptly whistle up the demolition crew and tell them to level the place. Will the local press content itself with paeans to W's selfless act of homage to the poor of Maine and Natural Beauty Restored? Probably.

Maybe, in the not too distant future, low income structures in Martha's Vineyard will be enhanced by Mohu's vertical grain doug fir flooring, thick canyon red quarry tiles, yellow pine bead board, plus lighting fixtures and hardware. Abrams says that's the way it's going to be. It seems unlikely to me, though I can imagine this salvage stock being sold off to rich people restoring their homes and the proceeds donated to a housing charity. Here are some of the exchanges between me and Abrams.

Alex Cockburn,

I'm writing about your Feb 25, 2006 piece called Fall of the House of Mohu. Sometimes, when someone gets something so remarkably wrong, as you have about this, it's hard to know where to start. So I'll start at the beginning.

As the Vineyard Gazette reported in a three page spread (hardly a "tiny reference" as you called it) Katherine Graham's evocative 10,000 square feet 1920's summer house sat empty after her death. It sprawled across a spectacular knoll above the Vineyard Sound. Bill Graham wondered what to do with it. He thought it would be a tribute to the land and the view from the Sound to "undeverlop" the spot but he wished the house could be put to good purpose. He called me and asked me to look at it. He wondered if it could be cut into pieces, moved, and made into (desperately needed) affordable housing. Due to the location and the construction of the house, that wasn't feasible, but the house was built from fine, sturdy materials which could be re-used. The trouble, I told him, was that it would be incredibly labor intensive and expensive to de-construct. I suggested that he pay to do that, and that he donate the materials to the non-profit Island Affordable Housing Fund. They could be stored and used in future Vineyard affordable housing projects.

After hearing the estimated cost for de-construction, Bill, to my utter amazement, agreed. So the job was done. All those involved took great pleasure in saving these historic materials and putting them to best use. Today, they are neatly stacked in a barn, awaiting use in a project now on the drawing boards.

There was no 'ferocious destruction", only skillful hard work by committed deconstruction experts who saved everything that could possibly be saved--which turned out to be almost everything! They left no "splinters and rubble." There were no bulldozers, except the one that re-graded the undeveloped site in preparation for planting native grasses that would make it part of the surrounding meadow. The driver carefully worked around the two beautiful stone chimneys that we left standing as reminders of the past.

That was it. Whole story. A poetic and positive story--entirely different from your bleak and negative portrayal

John Abrams



AC to Abrams

Hi John, .. To me there is a big question as to why he wanted to wipe ma's house off face of earth, but I'm happy to publish your letter,

Best
AC


Abrams to AC

Alex,

Publishing the letter would be fine, or even better a statement that you've now been better informed, and the Mohu de-construction was not at all what it seemed to be, and was, in fact, a very good thing. Bill didn't want to wipe out ma's house (in fact he used a few choice items that came from there for renovations to his own house); he wanted to make sense out of something that no longer did. What would you do with an empty 10,000 SF summer house on your property? Keep maintaining it so the critters would have a comfy place to nest?

All over the country, in desirable places with whopping real estate values, we have an ugly tear-down phenomenon whereby fine old buildings are trashed to be replaced by McMansions. This was the opposite: building not trashed--all parts saved--and building replaced by open space. Not bad, huh? Man puts money where mouth is. Now that's a story.
John



AC to Abrams

Well of course John, one would rather expect you to say all that, given your own role. Could you tell me more about the Affordable Housing Fund; what's it done in recent years? Presumably, affordable houses,. Where? How many? What cost? Are there annual reports available. Presumably it's a tax exempt.

I don't quite understand your statement that BG didn't want to "wipe out" his mother's house. Isn't that exactly what, for better or worse, he did? "Making sense" seems , in your context, to come down to demolition.

What would I do with a 10,000 sq foot summer home on my property? I can think of scores of possible worthy projects, starting with a low income co-op using existing structure, or an alternative school, or a hospice, or a retirement home for all the drunk writers and retired journalists on the island., (some of them perhaps relicts of the Graham empire), a writers' colony, at one end where they could drink and a bin at the other where they could dry out.

Isn't it rather a curious application of energy to spend a great deal of money and time taking down a large soundly built structure in a pleasing situation, taking away the lumber, windows, doors, etc , storing them , against the time that smaller structures can be built, thus reducing elsewhere the "open space" you delightedly invoke. Curious, that is, unless one concludes that BG thought Mohu a burden for financial reasons, had no sentimental attachment to it (to put it mildly) and saw a fine way to get the whole place demolished, with the work and materials being treated as a charitable donation and taken off his taxes, also reducing his property tax burden on the total acreage at the same time.

Again, I find your pretense that Mohu was not "trashed"--ridiculous. If I inherited Monticello and shortly thereafter, with whatever exquisite care, took it down and carted all the various salvageable portions to a barn nearby to be used at some future time for the poor of Charlottesville, (with -- as noted above -- huge costs of said demolition being used by me as a tax deduction and thus paid for by the citizenry at large, ) I think I would rightly be accused of trashing, demolishing, tearing down, a fine historic building. I'm not putting Mohu on the same level as Monticello, but perhaps you can take my point. You speak glowingly of the "open space" created by the demolition for which you were presumably well paid. Who is enjoying this open space? B. Graham? The local flora and fauna? The bluefish out in the Sound? The public?

Best Alex

Abrams to AC

Alex -

www.iahf.vineyard.net will tell you about the Fund. Lots of hard work, many successes, still learning plenty, presently continuing the work and sharing what we've discovered with many other communities which have the same set of problems.

Making sense, in my terms, means making best use given the situation, which in this case was de-construction. All those neat things that you said you'd do with an empty 10,000 SF summer house--hah, yeah that's what you'd do with it on someone else's property, right? And on yours? What have you done in the past with your empty 10,000 square foot summer houses? Easy for you to say what someone else should do, especially without knowledge of the circumstances or the subject, and to substitute making up the facts for learning them.

De-construction not curious at all. Especially not to the members of the national Building Materials Reuse Association (www.ubma.org). Or to those who patronize the many used building material yards that have been starting up the last decade and providing good materials at low prices to those who need them. Or to the condition of our landfills, the recipients of the stunning tonnage of trashed material from building demolitions. Sadly, all too few wealthy people who are replacing houses are willing to pay the money to deconstruct rather than demolish. Bill Graham is not some kind of hero; just a guy willing to do the right thing in this case. Your assumption that he could take a tax deduction for the work and materials is dead wrong; his tax deduction, if he took it, could only be for the value of the materials salvaged, which is about 20% of the cost. Citizenry at large paid for that portion, just like we pay for your tax deduction on your mortgage interest. At least Bill's tax deduction--if he took it--helps the poor, unlike yours.

Monticello? Well, if you do inherit it, and you don't want it, and nobody wants to designate it a historic structure, and it's not in a public place where it can sensibly be used for good public purpose, I think de-construction would be a fine way to deal with it, far better than demolishing. If it happens, let me know--we would be happy to make a reasonable profit doing that job, or to recommend someone more local. Fair warning though--it won't be cheap.

The open space is on Bill's property. He does not allow the public to romp around on it (we have a Land Bank that does an extraordinary job of providing managed open space for public access), but the public does use the water and the beach in front of the house site, so their view is now just a little nicer and less built-up.

Onward, John

AC to Abrams

Surely, the payment for your loving de-molition approached the value of the salvaged materials. BG could have simply donated money to low income housing .

I'm glad to hear that used material building yards in the North East are cheap. Out here in California they're usually very pricey, as one might expect with old pine or redwood or doug fir casement windows, floorboards etc.. Building with old salvaged stuff very often turns out to be far more expensive (tho of course more attractive than buying stock stuff at Home Depot etc.) The clientele to be found in these salvage yards are usually fairly, or very, affluent folk intent on re-habbing their Victorians etc with the right stuff., not people looking to put up low-income housing.

Anyway, it's edifying to hear the bottom line, that property is, after all, property and the low-income folk won't be allowed"to romp around" on Mohu land, any more than the high-income folk can play tennis there. I can understand where you're coming from, but how that MVG "journalist" can write an entire piece without once properly addressing the question of a son demolishing his mother's well loved home surpasses belief. And believe me, there are people aside from me who think it was a very weird thing to do. Best Alex



Abrams to AC

Alex-

I do want to respond to one thing. You say: "Building with old salvaged stuff very often turns out to be far more expensive (tho of course more attra tive than buying stock stuff at Home Depot etc. The clientele to be found in these salvage yards are usually fairly, or very, affluent folk intent on re-habbing their Victorians etc with the right stuff., not people looking to put up low-income housing."

I know all about what you are talking about--it's a part of my business--and some parts of your statement are true. But in this case I'm not talking about fancy materials salvaged from beneath Lake Superior and used to make the next Stradivarius. I'm talking about the people who patronize The Rebuilding Center (http://www.rebuildingcenter.org/) in Portland Oregon (your coast). Go on, take a few minutes and look at the website these materials are being used to make desperately needed affordable housing for working people, and these materials will enhance the homes that they will soon own. Got a problem with that?

All best, John

PS: Like many other wealthy Vineyarders, BG has donated money to affordable housing, in addition to these materials.



So much for all that. Abrams is maybe a little behind the curve on the Rebuilding Center in north Portland, in an area now rapidly gentrifying with the poor mostly black inhabitants being pushed out. My impression is that a decade or so ago some big non-profits began putting some money into these plans for "sustainable" use of old materials for low income housing, but that the steam has somwhat gone out of the idea, as the big non-profits rush on to the next fashion. I have spent many, many hours and indeed many dollars in salvage yards in the Bay Area, and it's very hard to imagine those expensive pieces of trim, of twenties mantle pieces and glass paneled doors ending up shoehorned into new, low income housing. When Kay Graham's Mohu rises, in whatever components and rearrangements, elsewhere in Martha's Vineyard, I look forward to a bulletin from John A.



Quail Down the Drain

From: george job <gmalmjob@yahoo.com>
Subject: Re: Quail in War and Peace

I thoroughly enjoy the burnished style Alexander Cockburn displayed writing this piece. As always, he lends the reader his pointed emotion and its clever adaptation to earthly folly. Excellent!

I would add to the quail saga this addition:

The California quail have made home here in Sun City, and native hatch-lings, no larger than a ping pong ball, play covey catch up in early spring. Their plight, apparent by the clamor a concerned hen emits, is entrapment after falling through the storm sewer grates while following across the street. If one goes in, the others are sure to follow. Anton Chekhov's 'look of wonder' posses the mother bird while Dad goes roof top displaying an uneasy hitch in his call.

What's a retired carpenter to do but fetch "big blue" to remove the heavy egg crate grate and climb in.

My heated rescue exposed their inbred fear fostered by centuries of human cruelty. The scramble went on two hours; several escaped down the storm drain, never to be seen again. Today, I use plastic netting tied on with tie wraps at several locations to ward off the little creature's early spring time demise. Hunting this bird for sport reveals a mischievous flaw underlining modern society's disconnect from the distance we have come from the cave. Not too far.

Thank you so much,
George Job
Henderson, Nevada.


The Origins of Zero

I quoted a letter from a fellow last week in which he said the Arabs invented the zero. Letters of admonition poured in. Here's one.

Peter Kilbridge writes:

"If you are going to periodically include a short paragraph of corrigenda, I hope you will note that the Arabs almost certainly did not invent the zero. Scholars seem to agree that it originated in India prior to the Muslim invasions, and was a tiny little circle originally used to represent the column of the abacus holding no numerical value.

It was probably introduced to the Arab world through traders, along with the rest of the 'Hindu-Arabic numerals.'"
Snuffysmith
http://www.tompaine.com/articles/2006/03/0...armongering.php
Ports Deal Fearmongering
Edward S. Walker, Jr.
March 06, 2006


Edward S. Walker, Jr. is president of the Middle East Institute . He previously served as assistant secretary of state for Near Eastern affairs; U.S. ambassador to Israel, Egypt and the United Arab Emirates; and deputy permanent representative of the United States to the United Nations. This piece originally appeared in the February 27, 2006 edition of the Newark Star-Ledger.

The sudden outcry by some members of Congress , state and local officials, and pundits about the United Arab Emirates port deal has the odor of election-year politics. I see a lot of statements that ignore the facts and are designed to play on the fears of the American public. The facts do not support the political rhetoric about security.

If our ports are indeed vulnerable, that vulnerability has nothing to do with the companies that manage them. Port security is regulated by the Department of Homeland Security, U.S. Customs, the Coast Guard and border protection authorities, not by private contractors. Port employees must be American citizens or legal permanent residents. No private company will own or manage any of our ports—the UAE company, Dubai Ports World, would only manage and operate terminals within the port.

More to the point, by the time a container has entered one of our ports and been off-loaded for further processing, it is probably too late to avert a nuclear or biological attack. Ports are located in major metropolitan areas where the effects of such an attack, even if centered in the port area, would have devastating consequences. The Container Security Initiative is the critical piece in the port security puzzle.

The UAE was the first Middle Eastern state to join this U.S.-sponsored initiative. Under its provisions, customs and border protection officers are permanently located in UAE ports to inspect containers before shipment to the United States. The UAE was also the first Middle Eastern state to join the Energy Department's Megaports Initiative, designed to stop illicit shipments of nuclear and other radioactive material. In short, we already depend on the cooperation of the UAE and its management company to ensure the security of U.S. ports, regardless of this proposed contract.

In more general terms, the UAE has been a key ally in the fight against Saddam Hussein, both in 1991 when I was the U.S. ambassador to the UAE, and more recently in support of our efforts in Iraq. Since 1990, the UAE has entertained more port visits by U.S. naval vessels than any other nation. In the war period of 1990-91 alone, more than 300,000 American sailors were able to take liberty in the UAE (and all on the basis of a handshake between the UAE ruler, Sheik Zayed, and myself). We had multiple squadrons of fighter, tanker, and reconnaissance aircraft stationed at UAE airports. Today our planes are able to use UAE facilities and we work together at the UAE Air Warfare Center, where our pilots are able to train.

Like the United States and most countries in the Middle East, the UAE was asleep at the switch when it came to Al Qaeda prior to 9/11. But since that time we have had outstanding cooperation on curtailing terrorist financial operations. Working with the Treasury Department, the UAE has enacted aggressive anti-money laundering and counter-terrorist financing laws. Information exchange between intelligence and financial authorities is continuous and far-reaching.

When our politicians ignore these facts and challenge the UAE's support for American interests, it looks more like racial profiling and political grandstanding than honest concern about U.S. security. The fact that a few UAE citizens have joined Al Qaeda is not a reason to condemn an entire country, just as we cannot and should not take the blame for the actions of every U.S. citizen.

The fact that the UAE was the site of financial transactions supporting terrorist organizations before 9/11 is no more relevant today than the fact that the U.S. supported the Taliban against the Soviets in Afghanistan or that American citizens financially supported terrorist organizations before systematic reforms we put in place after 9/11.

Members of Congress need to consider carefully the impact of reneging on this contract. Identifying the UAE as complicit in terrorism will sour a relationship that has been essential for our forces in the region and the continued safety and well-being of our troops. It will also anger the population of the UAE and put pressure on the government to terminate or limit UAE cooperation with the United States.

It may also put our ports in greater jeopardy if the UAE becomes less rigorous or less cooperative in the Container Security and Megaports Initiatives. We will be no safer and possibly a good deal less safe. Let us hope that we do not jeopardize our relations with a country that is a key player in the war against terror just to score a few points against the president and his administration.
Snuffysmith
http://www.insightmag.com/Media/MediaManager/ports.htm
Pentagon, Homeland Dept. objected to UAE port deal


A cargo ship sits at the dock at the Port of Miami in Florida, one of the ports where Dubai Ports World could take over operations. (Robert Sullivan/AFP file photo)

At least three security agencies raised objections to a takeover by a United Arab Emirates state-owned company of the operations of six major U.S. ports.

Congressional sources said the Defense Department, Homeland Security Department and Coast Guard expressed objections during the review by the Committee on Foreign Investment in the United States of the state-owned Dubai Ports World, which bought the British-owned Peninsular and Oriental Steam Navigation Co. P&O has managed port operations in New York, New Jersey, Baltimore, Miami, Philadelphia and New Orleans.

"All of the rules were bent on this one," a congressional source said. "We had a major security review managed by political appointees."

But most of the objections were not recorded in the proceedings of the Committee on Foreign Investment in the United States (CFIUS), the sources said. They said the objections remained off the record for "technical reasons." Later, the heads of some of the agencies denied that their representatives raised concerns.

"During this review process there were no issues raised by any agency within DoD, including our U.S. Transportation Command, and that is significant because that was a special review measure we'd put in place to ensure that any military transportation security issue would be identified," Deputy Defense Secretary Gordon England told the Senate Armed Services Committee on Feb. 28.

But the sources said Pentagon representatives voiced concern and objections to the deal in what was termed an unofficial manner. In some cases, the sources said, the Pentagon agreed not to place the objections in the CFIUS record.

"Dubai can't be trusted with our critical infrastructure," said House Armed Services Committee Chairman Duncan Hunter, who usually echoes the Pentagon's position. "UAE officials have been instrumental in the trans-shipment of nuclear materials and weapons of mass destruction components."

At one point, Homeland Security voted against the DP World application, the sources said. But they said the department's representative, Stewart Baker, agreed to change his vote after DP World pledged to honor additional undetermined security measures.

In contrast, the Coast Guard raised the prospect that DP World could not be trusted with running U.S. ports. An unclassified assessment by the Coast Guard in late 2005 said insufficient information was known about DP World and its links to al Qaeda sympathizers.

"There are many intelligence gaps concerning the potential for DPW or P&O assets to support terrorist operations that precludes an overall threat assessment of the potential DPW and P&O ports merger," the Coast Guard said in a memo released by Sen. Susan Collins, chairman of the Senate Homeland Security Committee. "The breadth of the intelligence gaps also infers potential unknown threats against a large number of potential vulnerabilities."

Still, the objections by the Coast Guard and other agencies did not delay the review of DP World by the CFIUS. The sources said that under political pressure, the committee did not follow its usual rule of ordering a 45-day review reserved for a foreign takeover.

"I am more convinced than ever that the process was truly flawed," said Ms. Collins, Maine Republican. "I can only conclude that there was a rush to judgment, that there wasn't the kind of painstaking, thorough analysis that needed to be done, despite serious questions being raised and despite the involvement of a wide variety of agencies."

The sources said investigators have already determined that DP World would take orders from the Dubai government. They said the UAE firm has cooperated with Dubai's boycott of Israel, which is a violation of U.S. law.

Congress plans to examine several aspects of the proposed deal. One was whether DP World or its sponsors in the Dubai emirate were linked to al Qaeda or other terrorist groups. Another was the source of the financing for the $6.8 billion DP World takeover of P&O.

Investigators also intend to examine the role of David Sanborn, who was appointed administrator of the Maritime Administration of the Transportation Department. Mr. Sanborn, termed a leading campaigner for President Bush, was a former senior DP World executive appointed to his government position on Jan. 17, the same day the CFIUS approved the takeover of U.S. ports by the Dubai firm.

"Sanborn does leg work for [White House Deputy Chief of Staff Karl] Rove," a congressional source said. "We believe he was the key to the unqualified White House backing for the takeover deal."

The sources said CFIUS might have also employed a double standard in considering foreign takeovers in the United States. They cited a committee decision to order a 45-day investigation of an Israeli company's $225 million purchase of Sourcefire, which designs security software for the Pentagon and the U.S. intelligence community. The decision to review the Israeli company, Check Point, was taken before the DP World controversy.

In contrast, the committee did not raise security objections of Dubai International Capital's proposed $1.2 billion acquisition of the London-based Doncasters Group. Doncasters owns factories in Georgia and Connecticut that produce engine components for U.S. military aircraft and tanks.

Last week, amid the fallout of DP World, the administration told Congress that the CFIUS was investigating Doncasters. On Feb. 27, CFIUS told the Senate Banking Committee that the panel would conduct a 45-day investigation of Dubai International and Israel's Check Point. The panel relayed its decision on the last day of the standard 30-day review process.

The Senate Commerce Committee plans to summon Mr. Sanborn to discuss his role in the DP World deal. At least two senators have pledged to block Mr. Sanborn's nomination unless he cooperates with investigators.

Another target of the congressional investigation could be Treasury Secretary John Snow. Mr. Snow, who oversees CFIUS, was the former head of CSX, which sold its port operations to DP World in 2004.

At the same time, the Senate Armed Services Committee plans to order an evaluation by the U.S. intelligence community of the United Arab Emirates. The Bush administration, warning of a backlash from the UAE, has opposed such an evaluation.

The administration has agreed to submit the slated acquisition by DP World of U.S. shipping operations to the CFIUS for a 45-day review. The Pentagon and other U.S. security agencies plan to participate in the process.

"The administration must know that we stand united to examine and review this deal independently," a letter signed by five Democrats and five Republicans said.
Snuffysmith
House Agrees To Vote On Ports

By Jonathan Weisman

Efforts by the White House to hold off legislation challenging a Dubai-owned company's acquisition of operations at six major U.S. ports collapsed yesterday when House Republican leaders agreed to allow a vote next week that could kill the deal.

To view the entire article, go to http://www.washingtonpost.com/wp-dyn/conte...er=emailarticle
Snuffysmith
U.S. Firm Loses Appeal of P& O Sale

By Jane Wardell

LONDON, March 6 -- A British appeals court on Monday declined to hear a Miami firm's objection to the takeover of British shipping company P&O Group by Dubai's state-owned Dubai Ports World, giving the go-ahead to a deal that has caused an uproar in the United States over port security.

To view the entire article, go to http://www.washingtonpost.com/wp-dyn/conte...er=emailarticle
Snuffysmith
--------------------------------------------------------------------------------
Bush and the Ports: The Honeymoon Is Over
- Cinnamon Stillwell
Wednesday, March 8, 2006
When the story broke that the Bush administration had approved a British-owned company's sale of U.S. port operations to one headquartered in the United Arab Emirates, all hell broke loose.

The company at hand, Dubai Ports World, is owned by the United Arab Emirates, so not only would we be handing over operations of our ports to yet another foreign company, but also to a foreign government. The fact that the deal was approved without the legally authorized 45-day investigation normally required when acquisition by a foreign government and security concerns are involved, certainly doesn't help. Then there was President Bush's claim that he knew nothing about the deal until after it had been approved, which wasn't terribly reassuring.

On top of it all, the original report that only six ports were affected by the deal turned out to be misleading. It is in fact 21 ports that are at stake, which would give the United Arab Emirates control over almost every major shipping terminal on the Eastern Seaboard. For some reason, much of the media continues to report the lower figure.

The firestorm over the ports deal has exposed a rift on the right and a political opportunity for the left. On the one hand, you have the Bush administration and loyalists in the Republican Party and conservative media defending the ports deal. On the other, you have Democrats, Republicans, conservatives and liberals all justifiably concerned about a Muslim country, ally or not, having control of 21 U.S. ports in a time of war. According to polls, the majority of Americans fall into the latter category, putting them at odds with the Bush administration.

With this in mind, the accusations of "hypocrisy" and "demagoguery" against Democratic opponents are a bit pointless. Whether they're doing it for partisan reasons or not is immaterial. The president is weak on his right flank, and whoever is smart enough to take advantage of that is likely to succeed. If the administration had not left itself open to criticism on issues such as homeland security and illegal immigration, the Democrats would not have a foothold.

In addition to being politically tone deaf, the Bush administration has reacted to critics with arrogance and dismissiveness. Bush's threat to veto any legislation put forward to stop or delay the ports deal is amazing, considering that he's never once vetoed a bill. Forget any and all spending bills, the president's sole concern seems to be benefiting the United Arab Emirates. Since Dubai World Ports has requested a 45-day investigation to address critics' concerns, Bush's bluff will not be called just yet.

In response to concerns raised by opponents, the Bush administration has pointed out that the Bureau of Customs and Border Protection and the Coast Guard will continue to control port security. However, the Coast Guard has complained of intelligence gaps in trying to determine whether Dubai Ports World might be vulnerable to terrorist operations. While the company itself may be reputable, what's to stop infiltrators from securing jobs and smuggling in weapons of mass destruction?

The Port Authority of New York and New Jersey was so concerned about this possibility that it filed a lawsuit against the U.S. government to block the ports deal. New Jersey filed a similar suit the day before.


Dubai and Sept. 11

While the pros and the cons of the ports deal have been much debated, certain facts remain that should give pause. Troubling links between the United Arab Emirates and Islamic radicalism are among them.

It's been widely reported that along with Saudi Arabia and Pakistan, the United Arab Emirates was one of only three countries to formally recognize the Taliban. But according to a recent article by journalist Paul Sperry, the relationship went much further than that. Dubai acted as banker and travel agent for the repressive regime. This cozy relationship extended to the Taliban's "guest," al-Qaida leader Osama bin Laden. He and the Dubai royal family maintained close ties, with a 1999 visit to one of his camps in Afghanistan courtesy of an official United Arab Emirates airplane.

In fact, Bin Laden used Dubai as a launching pad for the Sept. 11 attacks on the United States. Thirteen of the 19 hijackers entered the United States from Dubai. Two were United Arab Emirates citizens, and one, Marwan al-Shehhi, served in the army. Dubai also became al-Qaida's financial base, with more than $100,000 in funds channeled through its banks.

As for the worry that terrorists might get their hands on weapons of mass destruction, the United Arab Emirates has done its bit in that department as well. Two Dubai companies were involved in shipping illegal nuclear components sold by Pakistan's nuclear scientist Dr. Khan to North Korea, Iran and Libya.

Paul Sperry, author of "Infiltration: How Muslim Spies and Subversives Have Penetrated Washington," also points to a possible conflict of interest involving the Council on American Islamic Relations and the United Arab Emirates. CAIR, which has had five officials convicted of ties to terrorism, has defended the ports deal and accused critics of "Islamophobia." But it just so happens that General Sheik Mohammed Bin Rashid Al-Maktoum, the emir of Dubai and point man for U.S.-based executives of Dubai Ports World, owns the deed to CAIR's headquarters in Washington. One has to wonder if that has just a little something to do with CAIR's endorsement.


Skyscrapers and Repression

Despite the glittering skyscrapers and excessive wealth of the United Arab Emirates, it is a society that has very little in common with our own. According to the State Department, "There are no democratically elected institutions or political parties ... [and] there are no general elections." Freedom of the press does not exist in the United Arab Emirates, nor does unrestricted Internet access. Sunni Islam is the official religion and non-Muslims are prohibited from proselytizing or distributing religious literature to Muslims. Human trafficking involving foreign women used as prostitutes and young boys as camel jockeys is rampant.

While the United Arab Emirates would hardly be the first human rights-compromised ally of the United States, is rewarding such countries with lucrative business deals really the best approach to pushing democratization?

Furthermore, the United Arab Emirates is a participant in the Arab boycott against Israel and refuses to recognize the country. A certificate of origin has to be checked on all imports, lest they come from the Jewish state. When asked about the boycott, Muhammad Rashid a-Din, a staffer at the Dubai Customs Department, stressed that "If a product contained even some components that were made in Israel, and you wanted to import it to Dubai, it would be a problem." The fact that American companies are prohibited by law from cooperating with Arab governments in their attempts to boycott Israel seems to matter little in this case.

State-run media, such as satellite channel al-Arabiya, seem to be more concerned with spreading anti-American and anti-Israel propaganda than with reporting the truth. According to Cliff Kincaid at Accuracy in Media, the Iraqi government ordered al-Arabiya to leave Baghdad in 2003, accusing it of inciting violence against citizens and U.S. troops.


Kincaid also quotes Ali Al-Ahmed, the director of the Institute for Gulf Affairs, who claims that the United Arab Emirates "has been fueling the insurgency in Iraq" by providing sanctuary for "Sunni insurgent supporters and Sunni insurgents." Al-Qaida members have bragged about infiltrating the United Arab Emirates' security apparatus, among other agencies. This is the "valuable partner" President Bush insists has been so helpful in the war on terrorism?


Security vs. Business

Just because a country is an ally does not mean that we have to jeopardize our security. Even supposedly moderate allies in the region, such as Jordan, are hardly pillars of progress beneath the surface. Others, such as Saudi Arabia, are given a free pass because of the United States' energy dependence. Isn't it time we started expecting more from our allies than lip service?

Some have suggested that the Bush family has its own conflicts of interest with the ports deal. CNN's Lou Dobbs reported that United Arab Emirates investors provided funding to an educational software company owned by Neil Bush, the president's brother. But that's the least of it. A series of financial entanglements involving the Bush family, the Carlyle Group and Dubai investment entities owned by the United Arab Emirates are also raising eyebrows.

Now we find that another dubious Dubai deal is on the table. Dubai International Capital wants to buy London-based Doncasters Group, which would put it in charge of plants in Georgia and Connecticut that make components for military aircraft and tank engines. Having learned a thing or two from the ports debacle, the Bush administration has launched a national security investigation of the Dubai-owned company. But much like the ports deal, the investigation is more a delaying tactic than an impediment.

In response to such concerns, a bipartisan group of senators has put forward legislation that would require Congress be given the report from the 45-day review of the United Arab Emirates ports deal as well as final say on the arrangement. Additional changes involving oversight of the Committee on Foreign Investments in the United States, the administration panel that approved the ports deal, and foreign ownership where national security is at risk are also being proposed.

But the fact that such acquisitions are even being considered points to the larger problem of increasing foreign ownership. As it stands, China, Denmark, Japan, South Korea and Singapore have control over terminals in 36 American port cities. And now we're going to add the United Arab Emirates to that list? The strong reaction to the ports deal speaks to a growing dissatisfaction among Americans at the level of foreign ownership, outsourcing and illegal immigration in our country. If that's "protectionist," then so be it.

There's also the small matter of being at war. Despite the politically correct pronouncements of our president, we are currently engaged in a war with elements of the Muslim world. Is simply acknowledging that fact and exercising the appropriate caution really tantamount to the "anti-Arab bigotry" alleged by Bush?

The president's record on homeland security doesn't exactly inspire confidence. In addition to the outsourcing of America's ports, Bush has left the country's southern border largely defenseless, while increasing illegal immigration with guest-worker proposal announcements. The Department of Homeland Security is one massive pork-barrel spending opportunity, with funds going mostly to the wrong people in the wrong places. At the same time, the Bush administration has allowed Saudi oil money to purchase far too much influence in American society, particularly in its educational institutions.

Transnationalism as Usual

Much like previous administrations, the president is simply making the world safe for transnational corporations. It's no coincidence that former presidents Bill Clinton and Jimmy Carter are out pushing the Dubai deal. Administration after administration has brought America to the point it's at today, where everything is for sale to the highest bidder. When President George H.W. Bush introduced the concept of a "new world order," it was a harbinger of things to come.

We have entered the era of transnationalism, otherwise known as globalism, and it is sweeping away national identity in favor of an international marketplace. America is becoming nothing more than a hub for the exchange of money, goods and cheap workers. Concern over this issue spans the political spectrum, including the anti-globalization forces on the left and the protectionists on the right. Each faction is opposed to the outcome, for different reasons.

Many of Bush's constituents have awakened to this reality, and the rumblings of discontent have greatly increased. Adding to a series of disappointments since Bush's re-election in 2004, the ports deal may turn out to be the last straw.

The honeymoon is definitely over.

Cinnamon Stillwell is a San Francisco writer. She can be reached at cinnamonstillwell@yahoo.com


URL: http://sfgate.com/cgi-bin/article.cgi?file.../cstillwell.DTL


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Ports deal sparks biggest party revolt vs. Bush
By Alan Elsner

Republican congressional opposition to the takeover of operations at six U.S. ports by a state-owned Arab company has grown into the most serious revolt President George W. Bush has faced from his own party in the five years of his presidency, analysts said on Wednesday.

Defying Bush, Republicans in the House of Representatives intended on Wednesday to attach an amendment blocking the deal to legislation providing $91 billion for states recovering from Hurricane Katrina and to finance wars in Iraq and Afghanistan.

That sets up a potential showdown since the legislation is seen as essential, yet Bush has threatened to veto any bill blocking the takeover of port operations by Dubai Ports World.

"This is the biggest revolt Bush has faced and it comes on the issue that has been the core and heart of his presidency, namely security," said David Birdsell, a political scientist with Baruch College in New York City.

White House spokesman Scott McClellan said administration officials continued to discuss the issue with Congress but Bush remained determined to use what would be the first veto of his presidency if necessary.

Terry Jeffrey, a columnist for the conservative weekly Human Events who managed the 1996 presidential campaign of Republican Pat Buchanan, said Bush would lose this fight.

"The bottom line is, I think the Republicans in Congress are going to win on this," he said. "They will fight so hard that in the end the president will have to back down.

"Bush is not up for re-election and they are. They have popular opinion on their side and he doesn't."

Polls show about 70 percent of Americans and almost half of Republicans oppose the port deal.

For much of the first five years of the Bush presidency, he was able to exert impressive discipline on Republicans in Congress, even if some occasionally disagreed with him.

Party loyalty was frayed over Bush's failed attempt last year to reform the Social Security retirement system and came under further stress when the federal government did not adequately meet the challenge posed by Hurricane Katrina.

PROBLEMS OVER MIERS

Discipline fell apart when Bush nominated White House counsel Harriet Miers for a vacant Supreme Court seat last year but Bush was able to reassert party unity when Miers withdrew her candidacy and he nominated Samuel Alito in her place.

Now, with Bush's approval ratings hovering at or below the 40 percent mark, many Republicans are trying to separate themselves from him, said Tom Schaller, a political scientist with the University of Maryland, Baltimore County.

"This revolt is a symptom of the general dissatisfaction of congressional Republicans with the president," Schaller said. "He wants them to take difficult, unpopular positions. He himself doesn't seem to care about being popular and is always ready to spend his political capital but that attitude could be very destructive to his party."

One senior Republican political operative, who did not want to be named, also blamed fatigue among members of the Bush inner circle, most of whom have been with him for his entire presidency, for the administration's failure to anticipate the storm over the ports deal and its inability to quash the revolt.

"I don't know from the standpoint of stamina how they have kept going as well as they have all these years but now the exhaustion is showing," the operative said.

"The White House hasn't taken the offensive. They haven't gone out and sold the deal. They can't let the debate rage day after day and not be a part of it," he said.

Jeffrey said more revolts might be coming for Bush, especially on the subject of immigration reform.

He said many conservatives were adamantly opposed to legislation being crafted in the Senate and to create a guest worker program to bring foreigners into the country -- an idea original proposed by Bush in 2004.



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Former CIA Officer: Dubai Ports Not So Secure
By Jeff Johnson
CNSNews.com Senior Staff Writer
March 08, 2006

(CNSNews.com) - Political observers say that when two Republicans -- a liberal, New England senator and a conservative, Pacific Coast congressman -- come together to oppose a White House plan, the president had better take notice.

Sen. Susan Collins (R-Maine), chairwoman of the Senate Homeland Security and Governmental Affairs Committee, is known as one of the most liberal members of the GOP in Congress. She also serves on the Senate Armed Services Committee. Rep. Duncan Hunter (R-Calif.), chairman of the House Armed Services Committee, is known as a strong conservative and national security proponent.

While Collins and Duncan are often at odds on issues, they are united in their opposition to a proposal that would allow Dubai Ports World (DPW) -- a wholly-owned subsidiary of the government of Dubai, one of the United Arab Emirates (UAE) -- to manage some operations at 14 U.S. ports.

Hunter announced legislation Tuesday that would prohibit majority ownership of any U.S. "system or asset - physical or virtual - that is so vital to the United States that the incapacity or destruction of such system or asset would have a debilitating effect on national security, economic security, or public health and safety" by foreign governments or companies. The proposal would direct the Departments of Defense and Homeland Security to compile a "critical infrastructure" list of assets to be protected from foreign control.

While the legislation would conceivably cover a much broader section of U.S. commerce, Hunter made it clear that his immediate intent is to block a White House-backed deal that would give DPW some measure of control over port operations in Miami and Tampa, Fla.; Beaumont, Galveston, Houston and Port Arthur, Texas; Baltimore; Camden, N.J.; Davisville, R.I.; New Orleans; Norfolk, Va.; Philadelphia; Portland, Maine and Wilmington, Del.

Elaine Donnelly, president of the Center for Military Readiness (CMR), said Tuesday that the political differences between Hunter and Collins lend credibility to their opposition to the DPW plan and prove that it is not ideologically driven.

"The base is being fractured here. Whether it's the more liberal Republicans who would back Susan Collins, or the more conservative ones who respect Duncan Hunter a great deal, this is serious," Donnelly said. "When people of that caliber on both sides of the president's own party start raising questions, the president needs to pay attention."

Donnelly said she has not worked with Collins, who often disagrees with CMR on military issues, but she is familiar with Hunter and believes his opposition to the DPW deal is sincere.

"He must have good reasons and he may have reasons we don't even know about for doing what he's doing," Donnelly said. "He's known for doing his own investigations and he may be doing that now."

Larry Johnson, a former CIA officer who now heads the Business Exposure Reduction Group (BERG), believes he knows what could be motivating Hunter, Collins and other members of Congress to oppose the DPW deal.

"There is current intelligence that individuals with ties to jihadist terrorist groups have sought refuge in Dubai/UAE, within the last three months," from countries that are considered sympathetic to terrorists, Johnson said. "They felt more secure going to the UAE."

But President Bush has personally defended DPW, arguing that all security concerns have been addressed.

"If there was any doubt in my mind or people in my administration's mind that our ports would be less secure and the American people endangered, this deal wouldn't go forward," Bush said Feb. 28.

The president noted that DPW is purchasing a British company that currently holds the contracts to the port operations and that other U.S. ports have been managed by foreign-owned companies for years.

"What kind of signal does it send throughout the world if it's okay for a British company to manage the ports," Bush asked, "but not a company that has been secure, been cleared for security purposes from the Arab world?"

But Johnson challenged the president's assertion that DPW-run ports are secure.

"When you look at three of the top world ports for smuggling, counterfeit and contraband activity, those are, by my count, Hong Kong, Dubai and Panama. Dubai Ports World controls two of the three" Johnson said, referring to Dubai and Hong Kong.

"The White House is allowing commercial interests to trump any concern about security," Johnson said. "And I think Republicans like Collins and Hunter are smart enough to recognize that that's a non-starter."

Johnson's company has been investigating port operations in Dubai on behalf of a client as part of a federal racketeering lawsuit.

"One of the things we observed in the course of collecting evidence in that case was cigarette smuggling that started with cigarettes that would come out of Europe and the United States, go to Panama and then were shipped to ... ports in Dubai," Johnson said. "We also had evidence and saw direct evidence of other types of products being smuggled through Dubai, going into Pakistan through Afghanistan and going into Iran and going into Iraq."

Among the "other types of products" allegedly smuggled through Dubai, Johnson listed the nuclear technology now in the hands of Iran.

"If Dubai Ports World runs the smuggling operations or allows them or does not enforce any kinds of preventative measures in Dubai, just think what could happen in any of these other ports," he continued, "The techniques required to smuggle nuclear material or weapons are no different from those required to smuggle cigarettes or other less lethal, not as dangerous material."

As an example, Johnson referenced a 1992 terrorist attack in which a smuggler was led to believe he was transporting contraband cash on a flight full of Jewish merchants. Unknown to the smuggler, he was, in fact, carrying a bomb, which Johnson said, "blew the plane out of the air."

While President Bush has praised the governments of Dubai and the UAE for their cooperation in the war on terror, Johnson said Americans should listen carefully.

"It would be one thing if the owners of Dubai Ports World were the same individuals in the United Arab Emirates who are cooperating with us in the efforts to combat terrorism, but they are not," Johnson said. "There are elements in the UAE government that are helping us and there are elements that are not helpful."

Johnson believes many in Washington who tentatively support the president in the controversy could be converted into opponents if they would honestly ask themselves one question, which he calls "the gold standard."

"Would Israel allow Dubai Ports World to run its ports at Haifa? If the answer is 'yes,' then we should say 'okay,'" Johnson said. "But, you know what? The answer is 'no.'"
Snuffysmith
March 9, 2006
Faulty Screening of Truck Drivers Puts Ports at Risk, New Report Finds
By ERIC LIPTON
WASHINGTON, March 8 — The Port Authority of New York and New Jersey is failing to properly screen truck drivers allowed onto port terminals, according to a new federal report that found that nearly half the drivers whose backgrounds were checked had possible criminal histories.

Most of the histories involved minor crimes, ranging from immigration violations to assault. But there were also many felony convictions on narcotics, arson and weapons charges. The report, prepared by the Department of Homeland Security's Immigration and Customs Enforcement division, suggested that the failure to screen drivers leaves ports vulnerable to criminal acts and even terrorism.

The examination of the drivers' backgrounds was initiated after officials at Homeland Security, which operates radiation detectors at the New Jersey terminals, noticed that some of the drivers whose trucks had sounded false alarms had criminal records.

Concerned about the pattern, the department subpoenaed the Port Authority for access to records from its Sea Link program, which is intended to help move truck traffic quickly past security gates by clearing drivers before they arrive.

The Port Authority requires these drivers to submit photographs, as well as their Social Security and driver's license numbers, but it does not check this information against criminal databases before issuing a Sea Link card, the report said.

After going back and checking 9,352 active Sea Link cardholders with New Jersey licenses, the federal agency found that nearly half had possible criminal histories.

The more serious criminal cases included cardholders who had been charged with the possession of $5 million in stolen pharmaceuticals, or with trying to smuggle cocaine and Iranian carpets into the United States.

In 21 cases as of the end of February, Sea Link cardholders were wanted on outstanding warrants, many on drug-related charges.

The investigation, the report said, "highlights serious port security concerns and possible security gaps exposing vulnerabilities that could be capitalized by terrorist organizations."

Anthony R. Coscia, chairman of the Port Authority, said that Sea Link, which was created in the early 1990's, is focused on efficient movement of cargo and trucks. He agreed that the findings of the report were disturbing. "It is exposing what I think is an important vulnerability," he said on Wednesday.

The weaknesses with the system are not new, as the Coast Guard in 2003 determined that the Sea Link cards "do not increase security but rather facilitate access to the port using cards that have been stolen, sold or traded among truck drivers," the Homeland Security report said, quoting the 2003 findings. Ports nationwide also do not appear to routinely do background checks on truck drivers, the report said.

The federal government is already working on a program that would address many of the problems identified by the new report, which was first disclosed this week by ABC News. The government has been testing a new transportation worker card with a tamperproof element, like a fingerprint. But widespread use of the card has been repeatedly delayed, in part because of industry opposition to the background checks that would be required before a transportation worker could get one.

Mr. Coscia said that if the federal government takes too long, the Port Authority may ask the New York and New Jersey governments to authorize law enforcement officials to do background checks on port workers, including truck drivers. "It absolutely has to get done," he said. "No question about it."



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March 9, 2006
News Analysis
G.O.P. Ranks in Congress Show Widening Cracks
By CARL HULSE
WASHINGTON, March 8 — After more than five years of allowing President Bush relatively free rein to set their course, Republicans in Congress are suddenly, if selectively, in rebellion, a mutiny all the more surprising since it centers on the party's signature issue of national security.

In a rebuke to the White House, House Republicans are moving aggressively to put the brakes on the takeover by a Dubai company of some port terminal operations in several large American cities, an effort that moved forward on Wednesday with broad bipartisan support.

At the same time, Republicans in the Senate are wrestling with how hard to press the White House for more authority over Mr. Bush's eavesdropping program, seeking a middle ground between Democratic calls for an investigation of the program and White House demands to keep hands off. [Page A20.]

In the case of the port deal, the political considerations are clearly paramount for Republicans and are compelling. Public opinion appears to be strongly against allowing an Arab company to manage some port terminals in the United States, Democrats are hammering Republicans on the issue, and the White House has been unable to provide much political cover to its allies on Capitol Hill.

When it comes to the debate over how and whether to allow eavesdropping without warrants on terror suspects, the politics are more muddled. The White House has had considerable success defining that issue on its terms, as antiterrorist surveillance, and there has been no broad public outcry against it. Republicans on Capitol Hill have been left grappling with how to balance their concerns about granting the president wide wartime powers against the perception that they might weaken a program that the administration says protects Americans from attack.

Still, even a limited move to place a check on the eavesdropping program, like the one contained in a deal worked out by the White House with Republicans on the Senate Intelligence Committee on Tuesday, contributes to a sense that Mr. Bush's own party is edging away from him — or, in the case of the port deal, abandoning him and his dismal poll numbers with the greatest possible haste. A perception that conditions in Iraq show little improvement is not helping the relationship.

The president and his Congressional allies have been at cross purposes before, but it has never reached the level of the port confrontation. The conflict reflects a view held by many Republicans that the White House has asked a lot of them over the years, but has responded with dismissive and occasionally arrogant treatment — a style crystallized in Mr. Bush's quick threat, with little or no consultation, to veto any effort to legislatively hold up the port deal.

Intramural fights in politics often have an element of calculation if not orchestration, and the White House's political shop is no doubt aware that allowing Congressional Republicans to put some distance between themselves and Mr. Bush in an election year could serve the party's long-term interest. Whether theatrics or something more fundamental, some Republicans say that the port fight and scrutiny of the surveillance program show a new willingness to confront the White House and that it is a fitting moment for Congress to declare its independence.

"If there was ever a good time for Congress to figure out oversight, it would be in the sixth year of a presidency," said Representative Roy Blunt of Missouri, the No. 3 House Republican, well aware that the party in power typically loses seats at the midpoint of a president's second term.

That instinct for political survival is helping to stiffen the Congressional spine. Republicans have held a significant political advantage over Democrats on the issue of national security, offsetting Democratic strength on social policy. Given the uproar at home over the port deal and nervousness about the implications of new eavesdropping without warrants, Republicans are worried about losing their edge. Democrats say they should be.

In a memo to Senate Democrats that quickly made its way to reporters, a pollster reported Wednesday that the opposition to the port proposal and uncertainty over Iraq had significantly eroded Republican advantages among voters when it came to security concerns.

"With huge majorities opposing the president's proposal to sell control of U.S. ports to Dubai and the failure of the president's Iraq policy, Republicans' once yawning advantage on security issues has been largely neutralized," said the pollster, Mark Mellman.

Democrats tried to press their advantage Wednesday in the Senate. Senator Charles E. Schumer of New York surprised Republicans with an amendment to a lobbying bill that would ban any company "wholly owned or controlled by any foreign government that recognized the Taliban" from managing port facilities. The firm at issue, DP World of Dubai, fits that description.

Senate Republican leaders, trying to buy the administration some time on the port fight as their counterparts in the House deserted Mr. Bush, blocked a vote. But a showdown appeared inevitable.

"We know what the people of America think," said Senator Richard J. Durbin of Illinois, the No. 2 Democrat in the Senate. "This is a very bad idea."

There was no hesitation on the part of House Republicans, as the Appropriations Committee voted 62 to 2 to bar DP World from taking over any port operations, adding the ban to a $92 billion spending measure for Iraq and Hurricane Katrina recovery that could reach the floor next week.

Speaker J. Dennis Hastert said the House opposition to the deal was less about politics than national security. "We will continue to use our best judgment on how to protect the American people," he told reporters.

While the ruptures over national security have been striking, the administration and Congressional Republicans are likely to be parting ways on other issues waiting in the wings. They include immigration policy, spending cuts, trade and perhaps a stem cell research proposal that many Republicans believe is crucial to winning moderate voters.

The rifts reflect different strains of ideology within the party, many of which have been tamped down until now by Mr. Bush's ability to hold Republicans together — a degree of clout that seems to be ebbing away.

Mr. Bush's strength has largely been anchored in his standing on national security. And in elections since the attacks of 2001, that has been good politics as Republicans have claimed the mantle of the party best able to prevent another terror strike.

In the Senate, this week's maneuvering over the surveillance program showed a more cautious approach to confronting the administration. Republicans feared being accused of tampering with an antiterror technique, but some were genuinely troubled by the eavesdropping and refused to reject Democratic calls for an inquiry without taking some action.

The result was a legislative proposal for close oversight by a new subcommittee. But what was most striking was how hard Republicans involved in the negotiations sought to make clear that the agreement was a concession by the White House, not a victory for Mr. Bush. "They wanted the status quo," said Senator Pat Roberts, Republican of Kansas and chairman of the Intelligence Committee.

One thing is clear: Republicans on Capitol Hill are no longer entrusting security issues solely to Mr. Bush. They now realize that in some cases, they must protect themselves.



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March 8, 2006
House Committee Votes to Block Port Deal
By THE ASSOCIATED PRESS
Filed at 11:39 p.m. ET

WASHINGTON (AP) -- In a congressional election-year repudiation of President Bush, a House panel dominated by Republicans voted overwhelmingly Wednesday to block a Dubai-owned firm from taking control of some U.S port operations. Democrats clamored for a vote in the Senate, too.

By 62-2, the House Appropriations Committee voted to bar DP World, run by the government of Dubai in the United Arab Emirates, from holding leases or contracts at U.S. ports. The landslide vote was the strongest signal yet that more than three weeks of White House efforts to stunt congressional opposition to the deal have not been successful.

Bush has promised to veto any such measure passed by Congress. But there is widespread public opposition to the deal and the GOP fears losing its advantage on the issue of national security in this fall's elections.

The White House said the president's position was unchanged.

''This is a national security issue,'' said Rep. Jerry Lewis, the chairman of the House panel, adding that the legislation would ''keep America's ports in American hands.''

As the committee acted, Democrats on the other side of the Capitol maneuvered for a vote in the GOP-led Senate.

Republican leaders are trying to block a vote on the ports deal through a procedural vote that could occur as early as Thursday. That tactic is likely to fail, which could prompt Republicans to pull a lobbying reform bill from the floor in order to avoid defeat on the ports measure.

''We believe an overwhelming majority will vote to end the deal,'' said Democrat Charles Schumer of New York, whose attempt to force the issue to the floor brought the Senate to a late-afternoon standstill.

Congressional supporters of the deal ''are few and far between,'' conceded Sen. John Warner, R-Va., an administration supporter.

GOP Senate leaders hope to delay a quick showdown with Bush on the issue, but the House committee, led by members of Bush's own party, showed a willingness to defy him on a security issue in an age of terrorism.

Raising the stakes, the panel attached the ports language to a must-pass $91 billion measure financing hurricane recovery and wars in Iraq and Afghanistan. The committee approved the entire bill late Wednesday by voice vote and the full House could consider that measure as early as next week.

White House spokeswoman Dana Perino said the administration was concerned that attempts to address the DP World deal in that bill could delay money needed for U.S. troops and for hurricane victims on the Gulf Coast.

''We are committed to open and sincere lines of communication and are eager to work with Congress,'' she said.

Congressional opponents of the deal hammered away at the security questions they said the ports deal raised.

''One of the most vulnerable situations facing America is our ports of entry,'' said Rep. Bill Young, R-Fla., chairman of the House defense appropriations subcommittee. ''Whoever's responsible for those ports of entry should be American.''

Rep. Marcy Kaptur, D-Ohio., said allowing the DP World takeover to proceed -- and ignoring the public outcry over it -- would be irresponsible. ''The American people elected us to do something when an issue like this comes up,'' she said.

Only Reps. Jim Kolbe, R-Ariz., and Jim Moran, D-Va., voted against the measure.

''It is premature, we don't have enough information and ... it may turn out to be unnecessary,'' Moran said. Added Kolbe: ''I just don't think this is the right thing to do.''

Twice, anti-war protesters interrupted the committee meeting. They shouted: ''this war is illegal,'' ''stop funding this war,'' and ''the blood is on your hands.''

The House and Senate developments underscored the extent to which the politically charged issue has come to dominate the agenda in recent days, with Republicans and Democrats competing to demonstrate the strongest anti-terrorism credentials in the run-up to midterm elections.

Republicans worked to prevent a vote in the Senate as an aide to Majority Leader Bill Frist said the Tennessean warned Treasury Secretary John Snow ''the president's position will be overrun by Congress'' if the administration fails to aggressively and clearly communicate with lawmakers during a 45-day review of security implications.

The aide spoke on condition of anonymity because the meeting was private among Snow, Frist and several GOP committee chairmen. The Treasury Department oversees the multi-agency committee that initially approved the DP World takeover.

Republicans said it was possible senators would pass a simple symbolic statement in coming weeks that would put the Senate's view of the takeover on record without interfering with it.

But by mid-afternoon Wednesday, with the Senate debating legislation to respond to a corruption scandal involving lobbyists, Democrats signaled they wouldn't be satisfied with a weak provision.

Democratic Leader Harry Reid of Nevada told reporters he was prepared to let the lobbying reform bill languish if necessary.

Senate Republicans accused Schumer of subterfuge in the way he sought to inject the issue into the debate, pointing to a letter earlier this month in which he and other Democrats said they would refrain from seeking immediate legislation.

Schumer and fellow Democrats brushed that aside, with Reid calling the maneuver ''absolutely valid.''

The political context was unmistakable. Democrats circulated a pollster's memo claiming that recent events had ''dramatically reduced'' the GOP advantage on national security.

Some GOP senators accused the House of acting prematurely because of the heat Republicans were taking from their constituents.

''To kill the deal without a comprehensive solution to port security is just living for the political moment,'' said Lindsey Graham, R-S.C

On the House floor, Democrats failed for the second time in a week to force a debate and vote on separate legislation to block DP World's entry into U.S. port operations. In the committee, Republicans defeated a broader Democratic amendment that would have changed the process the United States uses to approve such foreign investments.

Republicans and Democrats in Congress have been assailing the Bush administration for approving DP World's purchase Peninsular & Oriental Steam Navigation, a British company that holds leases at several U.S. ports.



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March 9, 2006
Senate Could Influence Fate of Ports Deal
By THE ASSOCIATED PRESS
Filed at 9:03 a.m. ET

WASHINGTON (AP) -- After an election-year repudiation by a GOP-led House committee, President Bush hopes to avoid getting steamrolled in the Senate over a deal allowing a Dubai-owned company to take control of some U.S port operations.

By a 62-2 margin, the House Appropriations Committee on Wednesday voted to bar DP World, which is run by the government of Dubai in the United Arab Emirates, from holding leases or contracts at U.S. ports.

The ports provision was added to a must-pass measure funding the war in Iraq and providing new hurricane relief.

In the Senate, Democrats moved for a vote as well by trying to attach a measure blocking the deal to legislation designed to overhaul rules governing travel, gifts and their dealings with lobbyists.

Senate Republican leaders were trying to block a vote on the ports deal through a procedural vote that could occur as early as Thursday. That tactic was likely to fail, which could prompt Republicans to temporarily pull the lobbying reform bill from the floor in order to avoid an immediate defeat on the ports measure.

''We believe an overwhelming majority will vote to end the deal,'' said Sen. Charles Schumer, D-N.Y., whose attempt to force the issue to the floor brought the Senate to a standstill late Wednesday afternoon.

Bush has promised to veto any legislation blocking or delaying DP World from being able to operate U.S. port terminals as part of its takeover of Peninsular & Oriental Steam Navigation Co., a British company that holds contracts at several U.S. ports.

There is widespread public opposition to the deal, and congressional Republicans fear losing its advantage on the issue of national security in this fall's elections.

Since lawmakers attached the ports language to a must-pass $91 billion measure financing hurricane recovery and wars in Iraq and Afghanistan, Bush's veto threats may carry less weight with lawmakers.

The imbroglio over the port operations deal overshadowed the substance of the funding measure for Iraq operations and rebuilding projects on the Gulf Coast.

The underlying $91.1 billion spending bill provides $67.6 billion to fund the wars in Iraq and Afghanistan and $19.1 billion in new money for hurricane relief and rebuilding along the Gulf Coast.

The bill would bring total funding for the wars in Iraq and Afghanistan to $117.6 billion for the budget year ending Sept. 30. Total spending on Iraq and Afghanistan since the terrorist attacks of Sept. 11, 2001 would reach almost $400 billion.

The Appropriations Committee plan largely adopts Bush's requests for the war, the bulk of which would fund operations and maintenance costs, replacement of equipment, and personnel costs.

For hurricane relief, the House measure adopts Bush's $4.2 billion request but does not dedicate the money exclusively for Louisiana as he requested. The $19.1 billion for hurricane relief would bring total hurricane-related spending to more than $100 million.

The panel approved the underlying measure on a voice vote late Wednesday, and the full House could consider the measure as early as next week.

''This is a national security issue,'' Appropriations Committee Chairman Jerry Lewis, R-Calif., said of the port operations issue, adding that the legislation would ''keep America's ports in American hands.''

Congressional supporters of the deal ''are few and far between,'' conceded Sen. John Warner, R-Va., an administration supporter.

GOP Senate leaders hope to delay a quick showdown with Bush on the issue, but the House committee, led by members of Bush's own party, showed a willingness to defy him on a security issue in an age of terrorism.

''The House is acting a little rashly,'' said Sen. Norm Coleman, R-Minn., a critic of the DP World deal that has roiled Capitol Hill over the past few weeks. ''This is politics by polls, I guess, and it's certainly not the best way to operate.''

Only Reps. Jim Kolbe, R-Ariz., and Jim Moran, D-Va., voted against the measure.

''It is premature, we don't have enough information and ... it may turn out to be unnecessary,'' Moran said. Added Kolbe: ''I just don't think this is the right thing to do.''

White House spokeswoman Dana Perino said, ''We are committed to open and sincere lines of communication and are eager to work with Congress.''

Republicans worked to prevent a vote in the Senate as Majority Leader Bill Frist was said to have warned Treasury Secretary John Snow in a private meeting that ''the president's position will be overrun by Congress'' if the administration fails to aggressively and clearly communicate with lawmakers during a 45-day review.

The account was provided by a senior GOP aide who spoke on condition of anonymity because the meeting was private among Snow, Frist and several GOP committee chairmen. The Treasury Department oversees the multi-agency committee that initially approved the DP World takeover.



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Bush Looks to Senate to Save Ports Deal

Thursday March 9, 2006 11:01 AM
By ANDREW TAYLOR

Associated Press Writer

WASHINGTON (AP) - After an election-year repudiation by a GOP-led House committee, President Bush hopes to avoid getting steamrolled in the Senate over a deal allowing a Dubai-owned company to take control of some U.S port operations.

By a 62-2 margin, the House Appropriations Committee on Wednesday voted to bar DP World, which is run by the government of Dubai in the United Arab Emirates, from holding leases or contracts at U.S. ports.

The ports provision was added to a must-pass measure funding the war in Iraq and providing new hurricane relief.

In the Senate, Democrats moved for a vote as well by trying to attach a measure blocking the deal to legislation designed to overhaul rules governing travel, gifts and their dealings with lobbyists.

Senate Republican leaders were trying to block a vote on the ports deal through a procedural vote that could occur as early as Thursday. That tactic was likely to fail, which could prompt Republicans to temporarily pull the lobbying reform bill from the floor in order to avoid an immediate defeat on the ports measure.

``We believe an overwhelming majority will vote to end the deal,'' said Sen.