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FOR IMMEDIATE RELEASE: February 24, 2006

STRONG BIPARTISAN PUSH TO PASS EMERGENCY LEGISLATION SUSPENDING DUBAI PORT DEAL CONTINUES

Schumer, Coleman, Menendez, Snowe, Clinton, Coburn, Collins, and Reed Will Push Legislation as Soon as Congress Resumes Session on Monday to Halt the Ports Deal

Bill Requires Comprehensive CFIUS Investigation, Must Report to Congress, Full Congress Would Have Authority to Stop Sale

Next week control of the Port of New York and New Jersey will be handed over to Dubai Ports World, a Dubai Company that is owned and operated by the United Arab Emirates. This $6.8 billion deal is scheduled to be closed on March 2, and was briskly approved by the Committee on Foreign Investment in the United States (CFIUS) last month. The approval allows the UAE’s government-owned company to take control of significant operations at six U.S. ports including: New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. Except for cargo screening functions performed by the Department of Homeland Security, the Port operator is responsible for securing cargo coming in and out of the port, the port facility itself, and the hiring of security personnel.

Today Senators Schumer, Norm Coleman (R-MN), Bob Menendez (D-NJ), Olympia Snowe (R-ME), Hillary Clinton (D-NY), Susan Collins (R-ME), Tom Coburn (R-OK), and Jack Reed (D-RI) announced emergency legislation to suspend the Dubai port deal immediately. Late last night, the companies announced a voluntary cooling off period, but that would not order a 45-day investigation, which is what the emergency bipartisan measure would require.

Schumer stated, “A brief period for the company to continue lobbying without the full 45-day investigation that should have been done from the beginning is simply not enough. If the President were to voluntarily institute the investigation and delay the contract that would be a good step. But a simple cooling off period will not allay our very serious concerns about this dubious deal.”

“It is essential that Congress have the opportunity to exercise its oversight duties to ensure the safety and security of our ports, a vital component of our national security,” said Coleman. “For more than two years, I have worked on securing our nation’s ports—both at home and abroad. It is important to make sure all crucial components of our national security are in place and that is what our legislation is about. This bill gives Congress an additional 45 days to step back, gather more information, and submit a recommendation that is in the best interest of the country. I applaud Sen. Schumer’s leadership on this issue as we put in place the necessary oversight mechanisms regarding port sale transactions. I think all would agree that where national security is concerned, it is better that we take the time to appropriately assess what is at stake.

Menendez said, "Nothing in the announcement by Dubai Ports World changes the fact that unless the president or Congress acts, in less than a week operations at U.S. ports will be in the hands of a foreign government. That is an unacceptable risk that we cannot tolerate."

“At this time of heightened terrorist threat, we can ill afford to add another element of risk to our nation’s homeland security. I believe it is absolutely essential that this deal does not proceed until the Congress has a greater understanding of any potential national security implications. That is why today I am pleased to join forces with my colleague from New York, Senator Schumer, in introducing legislation that would stop this takeover until a full 45-day investigation takes place. After all, as a coequal branch of government, the American people expect the Congress to have a say in a deal that could potentially have vast national security implications,” said Snowe.

Coburn said, “Handing the keys to U.S. strategic ports to a regime that recognized the Taliban is not a sound next step in our war against terror. I urge Secretary Snow to investigate this agreement that could seriously undermine our national security.”

Collins stated, “It appears that this transaction has received far less scrutiny than it should have. This legislation contains several provisions that will require the Administration to work more closely with Congress ensuring appropriate consideration of homeland security concerns.”

"It is clear that the Bush Administration has failed to adequately address valid national security concerns. We will do everything possible to make sure the Administration conducts the mandatory investigation required under the law and does not compromise security at our ports," said Clinton.

At the beginning of this week Schumer was joined by House Homeland Security Chairman Peter King in offering this bipartisan bill on an emergency basis when the Senate returns to session on Monday. The bill has broad support in the Senate and the House and has been bolstered by statements of Frist and Hastert calling for similar action quickly.

Over the last two weeks since Schumer first criticized this deal, a litany of homeland security professionals have come out questioning the deal including former DHS Secretary Tom Ridge, former DHS Inspector General Clark Kent Ervin, and governors and mayors of both parties around the nation.

The bipartisan emergency bill will:

Require the President to place a stay on DP World’s takeover of P&O ports.
Require the Committee on Foreign Investment in the United States commence an immediate 45-day investigation on the takeover’s effects on national security. The bill also requires CFIUS to coordinate with other agencies, such as the Coast Guard, and to take in to consideration past security assessments of ports operated by DP World.
Require the Secretaries of Homeland Security and the Treasury to prepare a full report and brief members of Congress on their findings.
Upon receiving the report, Congress would have the authority to disapprove the sale within thirty days.

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