WASHINGTON — At a last-minute hearing here Thursday, Democrats on the Senate Armed Services Committee sharply challenged the Bush administration’s review and interpretation of the law involving a Middle Eastern company’s takeover of operations at six major U.S. ports.
Sen. John Warner (R., Va.), chairman of the committee, called for the hearing during a Congressional break, while Bush administration officials continued their efforts to dampen the mounting political firestorm 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 and New Jersey, Philadelphia, Baltimore, Miami, New Orleans and Houston.
The deal has pitted President Bush 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 light of national security concerns.
Sen. Hillary Rodham Clinton (D., N.Y.) grilled administration officials on their interpretation of the law governing the sale of U.S. assets and operations to a foreign entity.
“The process used in reviewing this transaction appears to be cursory at best,” said Clinton. “A number of provisions were not required of the company and it appears, similarly, that the mandatory requirement for an additional 45-day review with the entity involved … was ignored.”
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.
Sen. Carl Levin, (D., Mich.), the senior Democrat on the committee, expressed disbelief over the process and claimed the UAE has had an “uneven history” in the war on terrorism, recognizing the Taliban and allowing financial transactions for al-Qaeda.
“Are you saying … not one agency in this government believes this takeover could affect national security in the United States?” he asked.
Robert Kimmitt, deputy secretary at the Treasury Department, in response said national security concerns were raised throughout the review process and adequately addressed.
“Concerns were raised and they were resolved,” Kimmitt said. “If they had not been resolved, it could have affected national security,” and triggered a 45-day review.
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Levin warned the administration officials “not to interpret away” the law.
Clinton reiterated that legislation requiring a 45-day review of the case will be introduced when Congress returns next week.