WASHINGTON — Senate Republican leaders, the Bush administration and a Middle Eastern company caught in a political firestorm over an impending takeover of six U.S. ports were working on a compromise Sunday to head off the filing of anticipated bipartisan legislation early this week to force a new investigation of the deal in light of national security issues.
The potential compromise came as the political furor escalated over a deal that has United Arab Emirates-owned Dubai Ports World purchasing U.K.-based Peninsular & Oriental Steamship Navigation Co. The British-based company operates port facilities in New York, New Jersey, Philadelphia, Baltimore, Miami, Houston and New Orleans.
The federal Committee on Foreign Investment in the United States, comprising 12 agency members, conducted a 30-day review of the acquisition and unanimously agreed the deal could proceed.
However, it has pitted President Bush, who only learned of the impending acquisition last week, against leaders in his own party, who have joined Democrats in calling for the purchase to be delayed in order to undergo more intensive scrutiny in an additional 45-day review in light of national security concerns.
Frances Fragos Townsend, a White House Homeland security adviser, said Sunday morning on “Fox News Sunday:” “There is no deal yet but there are on-going discussions with the company and we have to wait and see what a request would look like.”
She noted CFIUS has no mechanism, according to congressional mandate, to reopen the review but a private company can make the request have it reopened. “We’re satisfied there has been a complete review of the deal and we’re satisfied we’ve addressed the security concerns. But for us to go back and reopen it, it would have to be based on a request from the company.”
Sen. Carl Levin (D., Mich.) said Sunday morning on ABC’s “This Week” that lawmakers would introduce legislation if the deal is allowed to close on Thursday, even if the company comes forward and requests a 45-day review. According to wire reports Sunday, Dubai Ports World has offered to submit to a broader U.S. review.
“The deal doesn’t have to close and it shouldn’t close,” said Levin. “That’s the issue that is not very clear at the moment. If you have to unwind a deal later on, that is much more difficult.”
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Sen. Charles Schumer (D., N.Y.), who has announced he will introduce legislation for a 45-day review, also made the rounds on Sunday political shows and said on CBS’ “Face the Nation” a compromise deal requiring a 45-day investigation “would be a significant step forward.”
But he warned that lawmakers expect to see the report after the investigation and would still need to weigh in on it.
“If after the 45-day investigation, the report is shared with Congress…and Congress gets some breathing space to approve or disapprove the deal, that would be just fine.” Schumer said.