Bush defends plan for Arab firm to run U.S. ports

WASHINGTON – President Bush on Tuesday strongly defended an Arab company’s attempt to take over the operation of seaports in Baltimore and five other cities, threatening a veto if Congress tries to kill a deal his administration has blessed.

Facing a sharp bipartisan backlash, Bush took the unusual step of summoning reporters to the front of Air Force One to condemn efforts to block a firm from the United Arab Emirates from purchasing the rights to manage ports from New York to New Orleans.

The Bush administration recently approved the sale of a London-based company that currently manages the ports to state-run Dubai Ports World. The deal has set off alarms on Capitol Hill and with the Republican governors of Maryland and New York, who note that the UAE has been a home base for terrorists.

The federal government has approval rights over business transactions with national security implications. In this case, Dubai Ports World would handle shipping arrivals, departures, unloading at the docks and many security-related functions. The federal government would oversee those security operations.

“I want those who are questioning it to step up and explain why all of a sudden a Middle Eastern company is held to a different standard than a (British) company,” said Bush, who was traveling from Colorado to the White House.

He said the transaction was thoroughly scrutinized by administration officials, who concluded that it poses no threat to national security. He praised the United Arab Emirates as a close ally against terrorism and warned against sending the wrong message to the world by condemning a business just because it is Arab-owned.

But many Republicans and Democrats who represent the seaport regions remain deeply skeptical of a UAE-owned company playing such a central role at some of the most sensitive entry points in the country. They noted that some of the hijackers involved in the Sept. 11, 2001, terrorist attacks used the UAE as an operational and financial hub.

Senate Majority Leader Bill Frist, R-Tenn., and House Speaker Dennis Hastert, R-Ill., called on Bush to delay the takeover and re-evaluate the security risk. Frist threatened to introduce legislation to delay the takeover if Bush does not act quickly.

Rep. Mark Foley, R-Fla., called Bush politically tone deaf. “Of all the bills to veto, if he lays down this gauntlet, he’ll probably have 350 members of the House ready to accept that challenge,” Foley said.

Bush welcomed the fight. “They ought to look at the facts and understand the consequences of what they’re going to do,” he said. “But if they pass a law, I’ll deal with it: with a veto.”