Coleman to Introduce Bill to Balance National Security and Economic Intererts Raised in Ports Controvoersy

COLEMAN TO INTRODUCE BILL TO BALANCE NATIONAL SECURITY AND ECONOMIC INTERESTS RAISED IN PORTS CONTROVERSY

Bill would require U.S. operation of foreign-owned investments impacting national security and critical infrastructure

Citing recent concerns over the security of U.S. ports, Minnesota Senator Norm Coleman today announced that he will introduce legislation to require U.S. operation of foreign-owned investments impacting national security and critical infrastructure such as American port terminals. The Foreign Investment Transparency and Security Act (FITSA) of 2006 will prohibit foreign government controlled entities from managing a national security related facility or investment. However, the bill will permit foreign governments to own and invest in such facilities provided that the foreign government establishes a U.S. general business corporation.

Much like the concept of a blind trust, the foreign government can own and benefit economically from its investment, but cannot control or manage day-to-day operations in the U.S. Mandating that foreign governments incorporate U.S. based operations prior to acquiring critical national security assets will ensure transparency. Furthermore these companies will fall under U.S. laws, liabilities, and be subject to court reporting and taxation. Additionally, oversight will be conducted by a board fully comprised of U.S. citizens.

"In a post 9-11 world, seaports are like airports—they are critical gateways to our country and security must be principal concern," said Coleman. "At the same time, foreign investment is a fact of life. We cannot ignore the fact that American national security is inexorably linked to economic security. While we cannot sacrifice national security for purely commercial interests, we cannot erect barriers that will stymie these vital investments. To be clear, preserving foreign investment is a national security interest."

Coleman continued: "To balance these two principles - encouraging investment by foreign governments and national security - I plan to introduce legislation that will permit foreign governments to continue to invest in our country, yet when sensitive national security interests are at stake, the foreign government would be required to relinquish day-to-day operations and management of the company."

Coleman's new bill follows legislation introduced Monday by Senators Coleman and Schumer blocking the sale of ports to Dubai Ports World until an additional 45-day review has been undertaken and Congress has been given the right to fully exercise its appropriate oversight authority. The Schumer-Coleman bill, the Foreign Investment Security Improvement Act of 2006, ensures that Congress is provided with the requisite information to make an informed decision regarding the national security implications of this single transaction. Coleman says he's introducing the Foreign Investment Transparency and Security Act (FITSA) because of the need for legislation addressing future port transactions.

"The issue of port security and America's safety is not about Dubai—an ally in the global War on Terror," Coleman said. "This issue is about protecting U.S. interests that affect our national security. This legislation would restrict all foreign government-owned companies from management of U.S. ports. We have to recognize that there is a much larger issue at stake, and we need to set a precedent in how we are going to conduct these types of transactions in the future. Preventing a terrorist attack by way of a cargo container continues to be a top priority; yet achieving this goal does not have to come at the cost of our economic prosperity. My bill is a plan to help our country strike an important balance between these two issues which will greatly affect the direction of our country's future."

As Chairman of the Subcommittee on Investigations (PSI) , Coleman has inspected ports in Los Angeles, California, Mexico, and Hong Kong, the largest port in the world as part of the Subcommittee's investigation into container security. In May of 2005, Coleman held a hearing entitled, "The Container Security Initiative and Customs Trade Partnership Against Terrorism: Securing the Global Supply Chain or Trojan Horse" to investigate how the interdependent global supply chain maintains effective cargo security throughout the entire chain at the same time it maintain effective trade worldwide.

This week, Coleman also announced that PSI will hold additional hearings March 28th and 30th hearings to address supply chain security and the U.S. Government efforts to prevent terrorists from smuggling a radiological or nuclear weapon into the United States. At these hearings, Coleman will unveil a Subcommittee report on supply chain security as well as two GAO reports commissioned by the Chairman on the domestic effort to deploy radiation equipment by the Department of Homeland Security and the international effort to deploy equipment led by the Department of Energy.

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