March 1, 2006

Castle Questions Panelists at Hearing on Dubai Ports World Acquisition

Washington D.C. -- Delaware Congressman Mike Castle, a member of the House Financial Services Committee participated in a hearing of the Subcommittee on Domestic and International Monetary Policy, Trade and Technology today to review the operations of the Committee on Foreign Investment in the U.S (CFIUS). The hearing primarily focused on the proposed acquisition of the P & O Steam Navigation Co. by Dubai Ports World. The House Financial Services Committee has direct jurisdiction over the CFIUS process, which is used to review such contracts.

Castle questioned the witnesses on when they were informed of the pending acquisition, and asked whether they regret the manner in which they handled the process of approving Dubai Ports World's CFIUS application.

"I believe it is crucial that we understand all of the potential implications of the Dubai Ports World acquisition of P&O Ports. The way the Dubai Ports World deal has been handled is troubling and I believe it is important that the CFIUS process follow the proper procedure for ensuring such sensitive transactions are reviewed at the highest level. Frankly it is very concerning that the upper level people who appeared at today's hearing did not know about this deal until a few weeks ago - despite the fact that it had been in the works since last fall. Our government's top responsibility is for the safety of American citizens and it has been my experience in these matters that greater transparency and cooperation always beat secrecy and concealment," Castle said in response to the hearing.

"That said, it is also very important to remember that the U.S. Coast Guard, the Customs Service, the harbor police, and the port authorities will continue to be responsible for all security duties at U.S. ports. Rather than focusing solely on domestic port management, we should be talking about ways to improve global port security. The majority of cargo entering the U.S. is loaded at foreign ports and overseen by foreign officials. This presents a serious security problem since most foreign countries are far behind the U.S. in terms of maritime security."

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