Dubai Company Says It Will Transfer Operations at U.S. Ports to a U.S. Entity

A Dubai-owned company moved yesterday (March 9th) to end the weeks-long controversy over its plans to take over some operations at six major U.S. ports. In an announcement from DP World's top executive read on the Senate floor by GOP Senator John Warner of Virginia, the company said it, quote, "will transfer fully the U.S. operations ... to a United States entity." No details were given, but the surprise announcement also said it was, quote, "based on an understanding that DP World will not suffer economic loss."

Many congressional Republicans welcomed the announcement, but others, along with some Democrats, withheld judgment until learning more about what would happen. GOP Rep. Peter King of New York, chairman of the House Homeland Security Committee who'd been a leading critic of the deal, said, "It would have to be an American company with no links to DP World," and Democratic Senator Charles Schumer of New York said, "To simply say that the U.S. entity will be separate isn't enough. How will it be separate? How thick is the wall?" The White House also welcomed the decision, which means President Bush won't have to follow through with a threat to veto any legislation blocking the original deal, with spokesman Scott McClellan saying, "It does provide a way forward and resolve the matter."

Yesterday's announcement came one day after the House Appropriations Committee voted 62-2 to block the deal, and GOP congressional leaders told Bush privately Thursday morning that Congress was ready to act despite his veto threat. In addition to their own reservations about the deal, members of Congress are facing re-election in November and the American public has been overwhelmingly against it.

When the deal became public nearly a month ago, questions immediately began to be raised by members of both parties about the safety of the deal. Critics pointed to the fact that the United Arab Emirates -- of which Dubai is a part -- was an operational and financial base for the 9/11 hijackers, as well as a transfer point for shipments of smuggled nuclear components sent to Iran, North Korea and Libya by a Pakistani scientist. But Bush vowed to veto any blocking legislation, saying the UAE has been a strong ally in the war on terrorism.

Are you satisfied with the announcement from DP World, or are you, like King and Schumer, still a little leery and want to see the details to make sure the American entity that will take over is totally independent?

Do you think the White House, seeing that they were going to lose, asked Dubai to do this instead of Bush having to veto the legislation and then be overridden?