"Under a secretive agreement with the Bush administration, a company
in the United Arab Emirates promised to cooperate with U.S.
investigations as a condition of its takeover of operations at six
major American ports...The U.S. government chose not to impose other,
routine restrictions."
"...the administration chose not to require state-owned Dubai Ports
World to keep copies of its business records on U.S. soil, where they
would be subject to orders by American courts. It also did not require
the company to designate an American citizen to accommodate requests
by the government."


Those two restrictions, keeping records within access by our courts
and designating a U.S. citizen as the government point of contact are
standard features for such foreign contracts and should have been
included.  Of course, CICBush43 detests the courts, so why should his
gang want to have a UAE firm's records accessible.  Overall, sounds
like a real sweetheart deal between the Bushland gang and UAE.

David Bier

http://news.yahoo.com/s/ap/20060223/ap_on_go_pr_wh/ports_security_62

 Documents Show Secret Deal on Ports Sale

By TED BRIDIS, Associated Press WriterThu Feb 23, 7:52 AM ET

Under a secretive agreement with the Bush administration, a company in
the United Arab Emirates promised to cooperate with U.S.
investigations as a condition of its takeover of operations at six
major American ports, according to documents obtained by The
Associated Press.

The U.S. government chose not to impose other, routine restrictions.

In approving the $6.8 billion purchase, the administration chose not
to require state-owned Dubai Ports World to keep copies of its
business records on U.S. soil, where they would be subject to orders
by American courts. It also did not require the company to designate
an American citizen to accommodate requests by the government.

Outside legal experts said such obligations are routinely attached to
U.S. approvals of foreign sales in other industries.

Dubai Ports agreed to give up records on demand about "foreign
operational direction" of its business at the U.S. ports, according to
the documents. Those records broadly include details about the design,
maintenance or operation of ports and equipment. It also pledged to
continue participating in programs to stop smuggling and detect
illegal shipments of nuclear materials.

"They're not lax but they're not draconian," said James Lewis, a
former U.S. official who worked on such agreements. If White House
officials negotiating the deal had predicted the firestorm of
criticism over it, "they might have made them sound harder."

The conditions over the sale of London-based Peninsular and Oriental
Steam Navigation Co. were detailed in U.S. documents marked
"confidential." Such records are regularly guarded as trade secrets,
and it is highly unusual for them to be made public.

The Republican head of the Senate Armed Services Committee, John
Warner of Virginia, planned an oversight hearing Thursday. Warner has
expressed support for the agreement, describing the UAE as an
important ally against terrorism.

Rep. Peter King (news, bio, voting record) of New York, the Republican
chairman of the House Homeland Security Committee, said the conditions
are evidence the Bush administration was concerned about security.
"There is a very serious question as to why the records are not going
to be maintained on American soil subject to American jurisdiction,"
King said.

Another critic, Sen. Charles Schumer (news, bio, voting record),
D-N.Y., added: "These new revelations ask more questions than they
answer."

The disclosure of the negotiated conditions came as the White House
acknowledged President Bush was unaware of the pending sale until the
deal had been already approved by his administration.

Bush has pledged to veto any bill Congress might approve to block the
agreement, but some lawmakers said they still were determined to
capsize it.

Dubai Port's top American executive, chief operating officer Edward H.
Bilkey, said he will work in Washington to persuade skeptical
lawmakers they should endorse the deal; several Senate oversight
hearings already are scheduled.

"We're disappointed," Bilkey told the AP in an interview. "We're going
to do our best to persuade them that they jumped the gun. The UAE is a
very solid friend, as President Bush has said."

Under the deal, the government asked Dubai Ports to operate American
seaports with existing U.S. managers "to the extent possible." The
company promised to take "all reasonable steps" to assist the Homeland
Security Department.

The administration required Dubai Ports to designate an executive to
handle requests from the U.S. government, but it did not specify this
person's citizenship.

It said Dubai Ports must retain paperwork "in the normal course of
business" but did not specify a time period or require corporate
records to be housed in the United States. Outside experts said
stricter provisions are routine in other industries.

Foreign communications companies with American customers are commonly
required to store business records in the United States. A senior U.S.
official said the Bush administration considers shipping manifests
less sensitive. The official spoke on condition of anonymity because
of the confidential nature of the agreement.

Bush faces a potential rebellion over the sale from leaders of his own
party, as well as a fight from Democrats. It puts Dubai Ports in
charge of major terminal operations in New York, New Jersey,
Baltimore, New Orleans, Miami and Philadelphia.

In Lebanon, Secretary of State Condoleezza Rice said Thursday that the
agreement was thoroughly vetted in a review process that took
approximately three months. "This is supposed to be a process that
raises security concerns, if they are there, but does not presume that
a country in the Middle East should not be capable of doing a deal
like this." She described the United Arab Emirates as "a very good
ally" and said "if more details need to be made available then I'm
sure they will be."

The White House said President Bush did not know about the agreement
until recently. The AP first reported U.S. approval of the sale to
Dubai Ports on Feb. 11, and many members of Congress have said they
learned about it from the AP.

"I think somebody dropped the ball," said Rep. Vito Fossella (news,
bio, voting record), R-N.Y. "Information should have flowed more
freely and more quickly up into the White House. I think it has been
mishandled in terms of coming forward with adequate information." 





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