AP Photo
A cruise ship sits docked at the New York City Passenger Ship Terminal Wednesday. The facility, the fourth busiest cruise terminal in the United States, is one of several affected by a controversial proposal to hand over shipping operations at six major U.S. seaports to Dubai Ports World, a company owned by the United Arab Emirates.
WASHINGTON - President Bush today sought to calm an uproar over an Arab company taking over operations at six major American ports, saying “people don't need to worry about security.”
Under a secretive agreement with the administration, a company in the United Arab Emirates promised to cooperate with U.S. investigations as a condition of its takeover of operations at six major American ports, according to documents obtained by The Associated Press.
The U.S. government chose not to impose other, routine restrictions.
“The more people learn about the transaction,” Bush said, “the more they'll be comforted that the ports will be secure.” He spoke to reporters at the end of a Cabinet meeting.
Bush said he was struck by the fact that people were not concerned about port security when a British company was running the port operation, but they felt differently about an Arab company at the helm. He said the United Arab Emirates was a valuable partner in the war in terror.
He said his administration would continue talks with members of Congress - Republicans and Democrats alike - who have rebelled against the takeover. He said the briefings were “bringing a sense of calm to this issue.”
“This wouldn't be going forward if we weren't certain our ports would be secure,” the president said.
In approving the $6.8 billion purchase, the administration chose not to require state-owned Dubai Ports World to keep copies of its business records on U.S. soil, where they would be subject to orders by American courts. It also did not require the company to designate an American citizen to accommodate requests by the government.
Outside legal experts said such obligations are routinely attached to U.S. approvals of foreign sales in other industries.
Dubai Ports agreed to give up records on demand about “foreign operational direction” of its business at the U.S. ports, according to the documents. Those records broadly include details about the design, maintenance or operation of ports and equipment. It also pledged to continue participating in programs to stop smuggling and detect illegal shipments of nuclear materials.
The conditions over the sale of London-based Peninsular and Oriental Steam Navigation Co. were detailed in U.S. documents marked “confidential.” Such records are regularly guarded as trade secrets, and it is highly unusual for them to be made public.
The Republican head of the Senate Armed Services Committee, John Warner of Virginia, planned an oversight hearing today. Warner has expressed support for the agreement, describing the UAE as an important ally against terrorism.
Rep. Peter King of New York, the Republican chairman of the House Homeland Security Committee, said the conditions are evidence the Bush administration was concerned about security. “There is a very serious question as to why the records are not going to be maintained on American soil subject to American jurisdiction,” King said.
Another critic, Sen. Charles Schumer, D-N.Y., added: “These new revelations ask more questions than they answer.”
Dubai Port's top American executive, chief operating officer Edward H. Bilkey, said he will work in Washington to persuade skeptical lawmakers they should endorse the deal; several Senate oversight hearings already are scheduled.
“We're disappointed,” Bilkey told the AP in an interview. “We're going to do our best to persuade them that they jumped the gun. The UAE is a very solid friend, as President Bush has said.”
Under the deal, the government asked Dubai Ports to operate American seaports with existing U.S. managers “to the extent possible.” The company promised to take “all reasonable steps” to assist the Homeland Security Department.
Foreign communications companies with American customers are commonly required to store business records in the United States. A senior U.S. official said the Bush administration considers shipping manifests less sensitive. The official spoke on condition of anonymity because of the confidential nature of the agreement.
The sale puts Dubai Ports in charge of major terminal operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.
- Associated Press Writer Anne Gearan in Riyadh, Saudi Arabia, contributed to this report.
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