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Democrats and the Irony of Dubai Ports World

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Remember Dubai Ports World? Back in February, the UAE company was poised to take over several U.S. ports. Democrats seized the opportunity to attack President Bush for turning over port security to an Arab country, and forced DP World to promise that it would sell its operations to a U.S. entity. Now comes an announcement that DP World has become the “first global marine terminal operator in the world to gain international certification for its security management system.” If we’re serious about security, scoring political points isn’t worth this price.

Don’t get me wrong – Democrats have delivered a range of important results on port security. But the DP World fiasco was an embarrassment at the time (xenophobia, anyone?) and is looking downright foolish today. Let’s hope that whoever picks up the DP World ports has the same determination to meet the International Standards Association benchmarks that DP World has taken the lead on.


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I'm sorry, but any company whose name is an acronym for the sexual act of double penetration does not deserve to be taken seriously

More to the point, it strikes me that this brief article is wrong to the point of falsehood.

Now, perhaps I'm the mistaken one. But as I recall, the Democrats (as usual) sat out the Dubai Ports controversy. The President took most of his heat from his own Republican caucuses in the House and Senate.

It was the Republicans that lead the charge, not the Democrats. It was the Republicans who cried loudest and longest, not the Democrats.

Setting that aside, there were serious concerns with the Dubai Ports deal in terms of both reasonable national concerns, and with national security aspects. It is frankly offensive to simply mischaracterize these reasonable issues as xenophobia.

Absolutely right Michael. Our party's position on that made me despair. it was outrageous and a sign that many of our representatives still can't be trusted on national security matters. I remember Schumer in particular. But there were others too.

As for Valdron's comment, I don't know what planet you're living on but as i remember it, our party piled on with the xenophobia. the republican opposition was largely a reaction to what Democrats were saying. It was clearly wrong and you should have the courage to say so.

Mmmmmm... I concur with Valdron. The Democrats sat back and let the Republican Caucus "eat their own" on this one. It also wasn't necessarily a bad thing to question the circumstances and players in the award of the contracts. Whilst the rhetoric may have veered toward xenophobia, the initial reaction to a state-owned company from a country with an unfortunate history of financially supporting terrorist and terrorist-related organizations was reasonable. Let's remember that there was zero congressional oversight on the deal prior to it being the news fodder.

Quick backgrounder from some years in insurance: the certification if from Lloyds and is based on an ISO standard adopted in July 2004. All major port managers will be certified eventually. It's a cost of doing business in the age of terrorism. Once more, certification impacts insurance premiums, and, as we see with the flashy press release from DPW, can also serve of PR.

I don't know this for sure, but I would guess DPW is first to be certified since they hired Lloyds to consult on compliance with the ISO section. This does not diminish Lloyds certification. Just an observation that DPW was keen to announce their "firstness."

My problem with the Dubai issue is the fact that the company is state owned.

It's my belief that we should not be giving port security over to ANY company majority-owned by another nation and I include in that Britain and Singapore who currently run ports.

It's surprising to me that folks who have little trust of our own government nonetheless trust that foreign governments will not misuse their control of one of our ports to get their own people into our country undetected for purposes of spying, smuggling or some other negative purpose. (Our allies spy on us as much as anyone, Israel for instance)

And yes there was xenophobia, but I must say, never has a group of people given Americans more actual reason to be xenophobic than have the people of the Middle East.

Granted, that's not fair to all the law abiding, non-terrorist citizens of the Middle East but fear is rarely rational and overcoming it isn't as easy as saying, hey everone quit being afraid, particularly when you have a group of people actively trying to terrorize.

Okay, I was struck by Architect's reprimand to Valdron: "I don't know what planet you're living on but as i remember it, our party piled on with the xenophobia. the republican opposition was largely a reaction to what Democrats were saying. It was clearly wrong and you should have the courage to say so." So I jumped in The Wayback Machine (I googled) and read the press coverage during February and March 2006.

I'll have the courage to say that the Democrats cleary piled on. As Tim Russert suggested the Dems did this to burnich their national security credentials. Still, what was more striking was the vitriol of the Republicans. From the Washington Post, February 22, 2006: "Dear Mr President: In regards to selling American ports to the United Arab Emirates, not just NO but HELL NO!" Rep. Sue Myrick (R-N.C.) wrote to Bush in a one-sentence letter. Both the Senate and House Leadership also opposed the deal, as did the Republican governors of New York and Maryland.

To read more of this article for free click here http://www.washingtonpost.com/wp-dyn/content/article/2006/02/22/AR2006022201609.html

Also I reviewed two NYT's editorials from February 24th and March 2nd, both suggesting that the xenophobia and racist angle originated from the Whitehouse. Granted, they're editorials, but they are also contemporaneous to the period being discussed.

It might actually be more ironic that the xenophobia and racist angle has actually permiated the institutional memory of the DPW deal so that in retrospect we all just accept that opposition to the deal was grounded in bigotry. A quick look around at the press of the day indicates the problem was more in how the White House handled the situations. As Scott McClellan remarked during a press conference at the time, "This is one where we probably should have consulted with or briefed Congress on sooner."

So, Valdron, do you have the courage to say that you were vaguely almost wrong, but sort of right too? And Architect, you might want to borrow my Wayback machine before getting so aggressive. You can find it at www.google.com.

Oh what foolish nonsense is this?

First of all, the sale of effective control of a major national asset to a foreign corporation IS ALWAYS GOING TO HAVE MAJOR PROBLEMS. Forgive me my caps, but placing principal national strategic assets under foreign control or ownership is simply a reckless way to run a country. And it goes beyond simple national security, to policy issues as to who is actually running the country.

Simple question. Should the officials running critical national infrastructure be accountable to the government of that country? Or to shareholders and corporate officials? Very simple, black and white.

The security issues posed were genuine. Republican Senator, and homeland security committee chair, Susan Collins:

"[A] careful review of the 'assurances letter' reveals that DP World is not, in fact, bound to provide the U.S. government with the information it would need to close the intelligence gaps the Coast Guard identified...The language is weak... Indeed, the assurances appear to amount to little more than a restatement of what the FBI or other law enforcement agenc[ies] could gather anyway in the course of an investigation." (wikipedia)

Persons knowledgeable about Security issues noted that the deal posed substantial unaddressed risks. These persons included Bill Gertz and Frank Gaffney.

Meanwhile, it was well known that Al Quaeda was active and had sympathizers in the UAE. Two of the 9/11 Hijackers were UAE. And the UAE provided funding to organizations, including Hamas, which the US had designated as terrorists. It was one of only three countries to recognize the Taliban.

Now, its pretty obvious that neither UAE nor DP is going to deliberately hand over security information, or facilitate Al Quaeda operations. However, the fact is that there is an increased situational likelihood that Al Quaeda or Islamic fundamentalists may have a lot easier time penetrating security and obtaining security information and using their local connections and strength to facilitate operations. It's not unreasonable under the circumstances to expect some penetration by Al Quaeda or sympathetic organizations in UAE government and operations. That's not racist or xenophobic, that's just flipping obvious.

There were legitimate concerns expressed with whether the deal had been fast tracked. With whether the deal had received proper clearances and review, and particularly whether operational security issues had been properly vetted.

Moreover, there were odd little jinks in the deal, including the fact that the records for American ports would now be under the jurisdiction of the Dubai government, and outside the reach of American government entities, such as grand juries or police.

Now business is business, but frankly, security concerns were validly raised, and it was entirely legitimate to discuss and debate them. Particularly when far less realistic security concerns are the subject of rabid hysteria. Get a grip, people.

The reality is that the United States has no coherent policies on Port security at all. On this front, in the absence of such coherence, it is reckless to simply green light deals without some effort at analysis.

Moreover, there were other issues, including environmental concerns, labour and union issues, human rights concerns, etc.

As one example of unclear issues, what about cronyism and conflicts of interest? Specifically, this deal appeared to be NOT the result of a competitive bidding process, but a sweetheart deal possibly by Sec. of Treasury, John Snow, who was once an executive with a company that was bought by Dubai Ports World. Has Iraq and New Orleans really been a great pair of poster children for these sorts of behind the scenes, 'no review necessary' sorts of deals?

Given the Bush administration's astonishing record for corruption in these and other areas, should we have automatically assumed it was all above board? Does the New Orleans debacle raise no concerns about potential cronyism?

As for Republican vs Democratic conduct. The role of an opposition party is to oppose, to challenge, to question, to hold the actions of the government up to scrutiny.

For the Democrats to challenge Dubai Ports or any other Bush initiative IS FOR THEM TO SIMPLY DO THEIR JOB. If you want a cheerleader for whatever Bush wants to do, then vote for a Republican.

As for the Republicans, how do you explain this:

Republican leaders Dennis Hastert and Bill Frist, who usually work closely with the office of the President, publicly questioned the deal. Frist said "If the administration cannot delay the process, I plan on introducing legislation to ensure that the deal is placed on hold until this decision gets a more thorough review." The controversy has created a public and unusually high-profile dispute within the Republican Party, and between the Republican-controlled Congress and the Republican-controlled White House. (Wikipedia)

Opponents of the deal included such right wing luminaries as Those who expressed opposition to the deal included: The New York Times, Michael Savage, Lindsey Graham, The New Republic, The John Birch Society, Sean Hannity, Lou Dobbs, Laura Ingraham; Bill Frist, John Gibson, and Peter King. Are there racist nutbars there? Yes. On the other hand, some of these were serious and credible politicians and thinkers.

Meanwhile, those pillars of Democratic backbone Charles Schumer, Hillary Clinton and John Kerry piped up to oppose the deal. Schumer may actually have been the first one to raise the issue. On the other hand, Bill Clinton gave advice to the DP operation, and other prominent Democrats including Jimmy Carter supported it. The result was a Democratic position that appeared divided, tentative and listless.

So the Republicans and the right wing went nuts, in terms of volume and attack. While Democrats seemed reluctant to shower each other with dissent and muted their tones, the right wing and the Republicans ran away with the issue.

That's the simple historical record. I'm living on Planet Earth.

As for Democrats not being trustworthy on national security over the Dubai Ports deal... the untrustworthiness lay principally in their failure to articulate their stands for or against with conviction.

ROTFL. Vaguely almost wrong? Never! If I'm wrong, I'm wrong, and there's no vague almosts about it.

Okay, so the Democrats did pile on with the Republicans, rather than sitting the issue out. And the evidence seems to show that Chuck Schumer kicked the thing off.

So, I'll fall back and argue that despite Mr. Schumer's initiation, it was principally the Republicans who picked up the ball and ran with it, who screeched loudest and longest. And I'll argue that the Democrats simply played catch up, and piled on after the Republican dissidents had defined and set the terms for the issue. Most of the Democrats who opposed Dubai Ports were simply 'me too.'

I mean come on, John Kerry, Mr. "I was for it before I was against it" and Hillary Clingon, Ms "Flag Burning amendment"? We're not talking politicians here who like to rush out and stake positions. They're all about nuance and following the herd.

Generally, speaking as a Canadian, the notion of foreigners gaining or having control of the commanding heights of our economy or of key strategic infrastructure is a major issue and a long running national debate. A lot of other countries have it too. The notion that Americans should simply accept the ownership of key strategic assets by foreigners strikes me as quixotic.

Moreover, a deal that included six or seven of the major ports and another twenty two critical ports deserves protracted national review. Period.

The issue of xenophobia and racism is an ugly one. It should have been sidelined from the discussion, and people should have focused on real issues - principles of sovereignty, transparency, conflict of interest, accountability to US law, access to records, oversite, environmental issues, human rights issues, labour and union relations, etc.

Just because some rich people or corporation wants to do something, to buy an asset or make some money, that doesn't mean that it is a good idea for the community as a whole.

I'm not giving republicans a pass. Reps like Myrick were a disgrace. But as the line in the West Wing goes, I hold my guys to a different standard than the other guys; that's why they're my guys.

By the way, Valdron, using Frank Gaffney et al to support your position; well, let's just say that's as bad or worse than using Rush Limbaugh. Gaffney is so extreme not even hard line republicans take him seriously.

BUT! BUT! BUT!

Getting back to Dr. Levi's post, which I read as a reprimand for Democrats playing political football with the DPW deal, despite, as we are now all aware, that they are ISO certified for security. Also, I caught a whiff of xenophobia mixed in, albeit paranthetically.

Look, the issue was that the WH did not advise congress until after the deal was done. In fact, the president was not even aware of the deal until it showed up on page one. It's about governance. The WH should have recognized that a change in management of the country's major ports is something worth getting the congress involved. That's what congress is for, after all (oh, ya, they also approve the money and occassionally, although not in recent memory, legislate). The DPW deal is just a more spectacular version of the administration idea of an imperial presidency that does not need the other two branches of government.

But don't call them out and insist on oversight, or else you'll be branded a xenophobe. And then the echo chamber brings us to the point where, six months later, we collectively recall that is was xenophobia, or bigotry, or some such horrible character defect that motivated us to oppose the deal.

I think it was more the idea that such a giant deal for such a vital resource and such a security area, can just happen with this administration.

My position being that the Dubai Ports deal was a cause celebre for the right and extreme right, and that those persons were the authors of mucho noiserio?

I'm still having trouble with this whole "DP" - Double Penetration World thing.

Now, perhaps I'm the mistaken one. But as I recall, the Democrats (as usual) sat out the Dubai Ports controversy. The President took most of his heat from his own Republican caucuses in the House and Senate.

Nope. That was one Democrats actually took the lead on. Pelosi, Schumer, Menendez and H. Clinton were right out in front.

Bush Socialism:

Our ports will be owned and run by government, just not our government.

The Bush Administration pushed thru the Dubai Ports deal, for the same reason they do most things, to do a favor for wealthy oil interests.

I feel more ashamed of so-called Democrats, who would resort to charges of xenophobia, rather than examine the merits of the security covenants, which the Bush Administration should have been requiring, but didn't.

Or, how about the merits of selling infrastructure in order to pay for oil? How about that issue.

Excellent honesty.

If you can frankly admit how bad the Democrat position was on the ports issue that shows both honesty and hindsight.

The Democrat position rabidly supporting Israeli oppression of the Palestinians is directly against US national interests and worth similar analysis.

It severely constrains what the Bush administration can do about a key national security issue for the United States and shows that Democrats still aren't serious about security.

If you could make a similar analysis of that it would show unblinkered clearsight.

Valdron,

I would be taking Democratic Progressives very seriously.

That said, what the hell is the deal??? In which state, forget it, in which congressional district was it a loosing issue? I guess a political blunder it was not.

Economically, I understand that the savages here could benefit from foreigners showing them how to manage ports competently, but than again, I am not sure that regional authorities etc. were doing such a bad job. I do not understand why it is beneficial to outsource utilities to private companies, but perhaps it is. The case is not overwhelming though. And the additional benefits of allowing international competion for our domestic public utilities are totally marginal at best. It is not like we have a unique opportunity to get access to some invaluable technology from Dubai.

So it is totally irrelevant to consider rich mercantile traditions of Dubai that for decades was the main center of smuggling operations in Indian Ocean. Would THOSE guys be hell-bent on smuggling something into USA, they would be perfectly capable of it without any deal.

By the way, shouldn't we jump a band wagon and offer DPI "TPM Certificate of World Standard in Security"? We have a nice bevy of experts here, and for, say, 20 million dollars we can conduct a study, issue a golden plated certificate, design spiffy web version etc.

Perhaps not DP, but does it bother you, as well, that a basic economic measure involves 500 single penetrations?

--
Howard

*equal opportunity offense to both extremes*

Frankly, a foreign entity, most especially one owned and operated by a foreign government should NOT be owning or operating any ports in the US, that is a threat to our national sovreignity and our security.

Dubai is not some shining example, it's a corrupt, viscious government.. holding them up as something to admire seems strange coming from writers on a forum that is supposed to represent the issues of liberalism.. honestly, what seems to be the jist of this article and some responses is that there hasn't been any substantive attention to the actual facts on Dubai and what the ports deal could mean, more it seems that it's someone's opportunity to impune democrats.

The US has been more than capable of providing security and managing our infrastructure.. it was the Reagan 80s that brought about the press to privatize, to erode our laws that restricted foreign nationals from owning/controlling infrastructure, the deregulation and consolidation of industries into fewer hands.

There's another one. No wonder American society is so rabidly sexualized.

Oh for the good old days when event the legs of piano stool were safely covered.

Excuse a maybe naive question, but is it possible, I mean legally possible, to ensure that certain American companies/corporations/businesses aren't owned by foreign entities so that they should be entitled to run American ports, or other instances of infrastructure of crucial importance for national security?

Once you put a company on the market, how do you keep the stock in American hands?

Ahmen. I firmly believe that promotion of the general welfare includes that public infrastructure that benefits the government, "we the people", be owned and operated by the only entity that usually gives some thought to social benefit. I believe that the founders thought that too by including roads for the post as federal assets.

With infrastructure (ports, roads, airports, energy, water, sewer, health facilities) going private we abandon the ability to maintain civil order & security as well as giving up on the grand American experiment.

Hilary should have been out front since her husband was a consultant on the deal.

As I understand it foreign ownership is not an automatic disqualification but requires a government contracting authority to do a one by one review.

Now as to foreign ownership where the controlling ownership is the foreign government I have no idea how government contracting normally handles that. In this era and what is judged critical infrastructure the review should be conducted with much tougher "standards".

No such thing as a bad questions (well, there are bad questions, but this isn't one of them). I threw it to a friend of mine who is a retired Navy procurement manager who was pretty senior. According to my friend, ownership clauses are common, especially when it comes to sensitive areas like security and weapons systems. Certainly port management should fall into this, and did.

The deal WAS reveiwed by the executive branch and APPROVED. Let's be very specific here. The government does NOT reserve the right to block such mergers and acquisitions, but DOES reserve the right to cancel contracts as a result of an M&A. Since the value of these companies is directly related to their contracts the clause effectively gives the US government a veto on M&A's in practice.

So, Uncle Sam did get a crack at the deal and approved it. What was most alarming, and incompetent, was that senior people in the WH didn't even know that the administration approved the deal until it his the front page above the fold.

It was an administration thing, not a contract problem.

The real irony of the DP World debate is that even if the deal had gone through in February, actual security of the port would still have been in the hands of American firms.

People tend to forget that just because DP World would have operated the port, they also outsource the speficic security detail. That detail would have been American.

Just like the port of Los Angeles, which was sold to a Chinese company during the Clinton years.

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