United States Congress
CONGRESSMAN ED TOWNS
10TH DISTRICT, NEW YORK
NEWS RELEASE
 
  For Immediate Release   Contact: Ruth Morrison
February 22, 2006 (202) 225-5936/202-441-6864
 

Congressman Ed Towns Calls Upon

 Secretary Snow to Review Dubai Port Operations Deal

 

New York, (February 22, 2006)- Congressman Ed Towns (D-NY 10) called upon U.S. Treasury Secretary John W. Snow to conduct a review of Dubai Ports World's purchase of the British firm P&O that would give the United Arab Emirates-owned company operational control of six U.S. ports including those in New York City.  The Congressman is also concerned about UAE's lack of recognition of the legitimacy of the State of Israel; its acknowledgment of the Taliban as a legitimate ruling party of Afghanistan; and a 2004 U.S. State Department report citing UAE's various human rights violations. In a letter to Secretary Snow, Congressman Towns stated:

                 

I am writing to add my voice of concern to the bipartisan members of the House and Senate, who are worried about the security effects of having ownership of U.S. port operations outsourced to a company owned and based in the United Arab Emirates. I hope that you will reconsider your position on this matter and ask the Treasury Department's Committee on Foreign Investment in the United States (CFIUS) to conduct a formal investigation, which I understand up until this point; you have chosen not to pursue.

 

The weakest link in our country's security chain is port security. Our ports are vast and there are tremendous amounts of shipping containers that arrive at our shores on a daily basis. The vulnerability of our ports coupled with the fact that only a fraction of containers entering the U.S. are ever searched, creates a Congressional obligation to be concerned about the manner in which this deal was accepted by CFIUS. Frankly, the secretive manner in which this agreement was approved by CFIUS is also alarming. This is a billion dollar deal, which must have the input of Congress. The fact that Congress was not alerted about this matter only adds fuel to the speculation that the administration has something to hide.

 

At this point in time, it seems that Congress is on its way to enacting emergency legislation that would block this sale, which I would fully support. Additionally, there have been calls for hearings to investigate the manner in which this deal was reached and its potential impact on national security. However, I feel that you can be helpful in reassuring Congress that the administration is taking this issue seriously by directing CFIUS to conduct a formal 45-day hearing, which would delay the port takeover.

           

The UAE is one of three countries that recognizes the Taliban as being the legitimate ruling party of Afghanistan. Moreover, the UAE does not recognize the legitimacy of the State of Israel. According to the State Department, in its 2004 human rights report, it cited numerous human rights restrictions on free assembly, freedom of speech and worker's rights in the UAE. Furthermore, the absence of UAE from the 2005 democracy promotion report, according to some, reflects official UAE reluctance to support U.S. efforts to promote reform there.  

 

I do not believe that port operations, which is an especially sensitive security concern, is something that should be outsourced in general. The President has stated that this sends the wrong message to the international community; however, I think we should be very worried that this sends the wrong message to American companies that the federal government does not want their business.

 

Once again, I strongly urge you to direct the CFUIS to take a second look at this deal and conduct a review of this matter. I look forward to hearing your thoughts and if you have any questions please do not hesitate to contact me at my Court Street office at 718 855-8018.

 

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