I've been on vacation in Floriday for a few days, and haven't been following the news very closely. I've observed the blowup over the contract to give a company headquartered in the United Arab Emirates, DP World, certain contracts relating to American ports. From the headlines and occasional blog posts I've seen, it's been hard to tell what the facts are. Also, the most sober commentators (like Glenn Reynolds, as usual) have focused on the administration's lack of an effective public explanation of what these contracts are all about and why they are not a security issue.

Earlier this evening, the administration took a step toward that kind of a PR campaign by sending out emails that relate some basic facts about the DP World contracts. Here are some excerpts:

Under the process conducted by the Committee on Foreign Investment in the United States (CFIUS), officials carefully reviewed the national security issues raised by the transaction and its effect on our national security. Twelve Federal agencies and the government’s counterterrorism experts closely and carefully reviewed the transaction to make certain it posed no threat to national security.

DP World, a UAE-based commercial entity, is purchasing the U.S. subsidiary of the London-based P&O Steam Navigation Company. The announcement of DP World’s bid for P&O was made in November 2005, and the news was widely reported in the press and international financial trade publications. The formal CFIUS process was set into motion in December, and the Federal government conducted a thorough review to ensure that port security would in no way be compromised by the deal.

The President has made clear that he stands firmly behind the decision to allow the DP World transaction to move forward. Preventing this transaction by a reputable company to go forward after careful review would send a terrible signal to friends and allies that investments in the United States from certain parts of the world are not welcome.

The Department of Homeland Security (DHS) Is Always In Charge Of The Nation’s Port Security, Not The Private Company That Operates Facilities Within The Ports. Nothing will change with this transaction. DHS, along with the U.S. Coast Guard, U.S. Customs and Border Protection, and other Federal agencies, sets the standards for port security and ensures that all port facility owners and operators comply with these standards.

The Transaction Is Not About Port Security Or Even Port Ownership, But Only About Operations In Port. DP World will not manage port security, nor will it own any ports. DP World would take on the functions now performed by the British firm P&O – basically the off- and on-loading of cargo. Employees will still have to be U.S. citizens or legal permanent residents. No private company currently manages any U.S. port. Rather, private companies such as P&O and DP World simply manage and operate individual terminals within ports.

DP World Has Played By The Rules, Has Cooperated With The United States, And Is From A Country That Is A Close Ally In the War on Terror. The United Arab Emirates (UAE) has been a solid partner in the War on Terror. The UAE has been extremely cooperative on counter-terrorism and counter-proliferation and has provided considerable support to U.S. forces in the Gulf and to the governments and people of Iraq and Afghanistan.

The UAE Is An Established Partner In Protecting America's Ports. Dubai was the first Middle Eastern entity to join the Container Security Initiative (CSI) – a multinational program to protect global trade from terrorism. Dubai was also the first Middle Eastern entity to join the Department of Energy's Megaports Initiative, a program aimed at stopping illicit shipments of nuclear and other radioactive material.
Port Security Begins Abroad. U.S. Customs and Border Protection (CBP) created the CSI to enable CBP to inspect 100% of high-risk containers at foreign seaports before they are loaded onboard vessels destined for the United States. Dubai was the first Middle Eastern entity to join CSI. Cooperation with Dubai has been outstanding and a model for other operations.

DP World currently manages 19 container terminals and has operations in 14 countries. The United States government has a strong working relationship with DP World.

There's lots more. I am not, to understate the case, an expert on port security. But these sound like cogent points, don't they? If there is an argument that permitting the DP World transaction to go through as planned will compromise our security, what, exactly, is it? Maybe the argument has been made, and I've missed it by virtue of being out of touch for a few days. But so far I, at least, haven't heard any facts that would negate the force of the administration's arguments.

Posted by John at 09:02 PM  |    |