WASHINGTON, D.C.—Senator Susan Collins, Chairman of the Senate Committee on Homeland Security and Governmental Affairs, and Congresswoman Jane Harman (D-CA), Member of the House Homeland Security Committee, today announced their intent to introduce a resolution calling upon the Administration to reconsider the sale of Peninsular and Oriental Steam Navigation Company (P&O) to Dubai Ports World (DPW). Senator Collins said that she believes that the Administration must take a closer look at the transaction in order to ensure that it will not have an adverse affect on our national security.
“The more I learn, the more questions are raised. I am troubled by the national security implications of allowing the transaction to proceed,” said Senator Collins. “While UAE is an ally in the war on terror, the UNAE has historically been used as a base of terrorist operations and financing. It is clear that this transaction has received far less scrutiny than it should have and that is why I plan to introduce a resolution of disapproval in the Senate when the session resumes next week.”
P&O has major container terminal operations in New York, Philadelphia, Baltimore, Miami, and New Orleans. Closer to home, P&O conducts stevedoring operations in the Port of Portland, Maine.
In addition to announcing a joint resolution, Senator Collins sent letters to Department of Homeland Security Secretary Michael Chertoff and Department of Treasury Secretary John Snow expressing “serious concerns” with the proposed sale of operations at six major U.S. ports to Dubai Ports World (DPW), a company owned by the government of the United Arab Emirates. The letter was also signed by Ranking Member Joseph Lieberman (D-CT), and Senators Norm Coleman (R-MN), Chairman of the Permanent Subcommittee on Investigations and Carl Levin (D-MI), Ranking Member.
Following is the full text of Senator Collins’ letter to Secretaries Chertoff and Snow:
February 21, 2006
The Honorable Michael Chertoff
Secretary
U.S. Department of Homeland Security
Washington, DC 20528
The Honorable John W. Snow
Secretary
U.S. Department of Treasury
1500 Pennsylvania Ave., NW
Washington, DC 20220
Dear Secretary Chertoff and Secretary Snow:
We are writing to express our serious concerns regarding your review of the purchase of Peninsular and Oriental Steam Navigation Company by Dubai Ports World (DP World). As this transaction will result in the transfer of multiple terminal operations in major U.S. ports to a Dubai-government owned entity, it would seem to demand a more rigorous assessment, if not a full investigation. Even more significant is the historic use of the United Arab Emirates (UAE) as a base for terrorism financing and operations. Therefore, we ask that you provide a briefing to Members of the Homeland Security and Governmental Affairs Committee, as soon as possible, on the basis for the decision to allow this transaction to proceed.
As you know, Federal law requires that the President review the national security impact of foreign investments in the United States. The President has delegated this responsibility to the interagency Committee on Foreign Investment in the United States (CFIUS), headed by the Department of Treasury, and including representatives of the Departments of Commerce, Defense, Homeland Security, Justice and State. Although any member of the CFIUS may raise an objection to the acquisition, we understand that, in the current case, no objection was raised. This past weekend, Secretary Chertoff noted that there were “conditions or requirements” to address national security concerns associated with this transaction. The briefing to our Committee should include a discussion of such “conditions or requirements” that will be imposed upon DP World should the acquisition go forward. We ask that you fully describe CFIUS’s deliberations regarding the national security implications of this transaction.
While the United Arab Emirates is a recognized partner in the war against terrorism, it is located in a highly sensitive region of the world for terrorist activity. Some of the 9/11 hijackers traveled to the United States from the UAE, where they were engaged in operational planning for the attacks. Much of the financing for the attacks was transferred through the UAE banking system.
It is critical to our national security that the government thoroughly review pending foreign investments in the United States. We believe that the Administration should be working more closely with Congress where acquisitions are of such a sensitive nature. In addition, we will be looking into the DHS role in the CFIUS process to ensure appropriate consideration of homeland security concerns.
Thank you for your response on this important matter.