UAE acquisition of U.S. ports raises maritime security concerns

Feb 21, 2006 3:48 PM

Two Republican governors are threatening legal action to block an Arab company from taking over operations in major U.S. ports.
New York Gov. George Pataki and Maryland Gov. Robert Ehrlich on Monday voiced doubts about the acquisition of a British company that has been running six U.S. ports by Dubai Ports World, a state-owned business in the United Arab Emirates.
The British company, Peninsular and Oriental Steam Navigation Co., runs major commercial operations at ports in Baltimore, Miami, New Jersey, New Orleans, New York and Philadelphia.
The Bush Administration has decided to allow the transaction.
"Ensuring the security of New York's port operations is paramount and I am very concerned with the purchase of Peninsular & Oriental Steam by Dubai Ports World," Pataki said in a news release. "I have directed the Port Authority of New York and New Jersey to explore all legal options that may be available to them."
Ehrlich, concerned about security at the Port of Baltimore, says he is "very troubled" that Maryland officials got no advance notice before the Bush Administration approved the Arab company's takeover of the operations at the six ports.
"We needed to know before this was a done deal, given the state of where we are concerning security," Ehrlich told reporters in the State House rotunda in Annapolis.
Republican Sen. Lindsay Graham of South Carolina said on Fox News Sunday that the administration approval was "unbelievably tone deaf politically." GOP Rep. Tom Davis of Virginia said on ABC's "This Week," "It's a tough one to explain, but we're in a global economy. ... I think we need to take a very close look at it."
Critics have noted that some of the 9/11 hijackers used the UAE as an operational and financial base. In addition, they contend the UAE was an important transfer point for shipments of smuggled nuclear components sent to Iran, North Korea and Libya by a Pakistani scientist.
During a stop Monday in Birmingham, Ala., Attorney General Alberto Gonzales said the administration had a "very extensive process" for reviewing such transactions that "takes into account matters of national security, takes into account concerns about port security."

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