Port Security Deal Raises Terrorism Concerns -- Was Background Process Shortcircuited to Expedite Deal?

Port Security Deal Raises Terrorism Concerns -- Was Background Process Shortcircuited to Expedite Deal?

U.S. Senator Robert C. Byrd, D-W.Va., joined a group of Senators on Thursday in expressing concerns about the pending shift of control of six vital American seaports to a company owned by the government of the United Arab Emirates (UAE).

"This deal raises serious questions about security at our ports, and underscores how little focus this Administration has paid to port security since 9/11," Byrd said.

The Administration approved a deal that allows Dubai Ports World (DP World) to take over management of six major U.S. seaports. DP World is owned by the government of the United Arab Emirates, a country that the nonpartisan 9/11 Commission and other groups have cited for links to terrorist organizations and activities.

Byrd's concerns have been echoed by Senate Republican Leader Bill Frist of Tennessee and House Speaker Dennis Hastert of Illinois. Each leader has called on the President to hold off on the UAE port deal. In response, President Bush has threatened to veto legislation to delay or stop the UAE deal.

"The President's veto threat is, at the least, unfortunate. The American people have serious questions: How was this company investigated? Was enough emphasis given to security and terrorism concerns? Is there some kind of backroom deal that is causing the Administration to press forward despite the strong, bipartisan concerns from the Congress? We need to get the answers before handing the keys to these six major U.S. ports to the UAE," Byrd said.

The 9/11 Commission found that "the vast majority of the money funding the Sept. 11 attacks flowed through the U.A.E." Its government, the commission found, ignored U.S. pressure to clamp down on terror financing until after the attacks.

In addition, the UAE was one of three countries in the world to recognize the Taliban as the legitimate government of Afghanistan. The FBI has cited the UAE as an obstacle in efforts to track and close banks containing funds for al Qaeda and Osama bin Laden. And Pakistani nuclear scientist A.Q. Khan reportedly used the UAE as a clandestine transhipment point for nuclear related materials to Libya and Iran.

Senator Byrd authored legislation, signed into law in 1992, that requires a thorough examination when a foreign government's investment in the United States could affect national security. The law states that the Committee on Foreign Investment in the United States (CFIUS) -- a panel comprised of Cabinet officials and several White House offices -- spend a minimum of 45 days to examine the national security implications of any commercial deal involving a foreign government-owned company. CFIUS approved this deal in approximately 25 days, and raised no national security concern.

The Senate Armed Services Committee on Thursday heard from the various federal departments that comprise CFIUS. After listening to the witnesses, Byrd and other Senators expressed ongoing concerns about the port deal.

"I fear that, in its rush to approve this multi-billion-dollar deal, the Administration ignored key questions about this company owned by the Government of the United Arab Emirates. We should not risk the safety of the American people to rubberstamp some business deal. The security of this nation ought to come first," Byrd stated.

The Senator has pressed hard for security improvements at U.S. seaports. While the White House has proposed significant cuts in port security, including this year's call for the elimination of the only federal initiative that invests funds in port security efforts, Byrd has countered with consistent efforts to beef up port protections. In total, since Fiscal Year 2002, $818 million has been appropriated by Congress for port security grants, with only $46 million of that amount being requested by the President.

http://byrd.senate.gov/newsroom/news_feb/uae_armed_services.html