Lawmakers demand information on sale of U.S. port operations

Lawmakers on Tuesday demanded more information on a deal that would allow a state-owned company in the United Arab Emirates to take control of six U.S. ports.

UAE-based Dubai Ports World has proposed buying British firm Peninsular and Oriental Steam Navigation Co. If the deal goes through, DP World would take over terminal operations at the U.S. ports of New York, New Jersey, New Orleans, Miami, Philadelphia and Baltimore.

The Senate Homeland Security and Governmental Affairs Committee sent a letter to Homeland Security Secretary Michael Chertoff and Treasury Secretary John Snow asking for a briefing on why the sale has been allowed to proceed. Committee Chairman Sen. Susan Collins, R-Maine, and ranking member Sen. Joseph Lieberman, D-Conn., said the transaction "would seem to demand a more rigorous assessment, if not a full investigation."

Senate Majority Leader Bill Frist, R-Tenn., called on the Bush administration Tuesday to at least temporarily stop the sale. "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," Frist said in a statement.

The sale has serious implications for homeland security, said Rep. Bennie Thompson, D-Miss., ranking member of the House Homeland Security Committee. Thompson called for three hearings on foreign ownership issues in a letter to committee chairman Rep. Peter King, D-N.Y.

"Based on many conversations that I have had with the private sector and academics, I believe that foreign ownership issues raise homeland security concerns that the Committee on Homeland Security should examine thoroughly," Thompson wrote. "Having the full committee convene on this is necessary, given the gravity of the issue and its application to core homeland security efforts."

King's office could not be reached for comment Tuesday. In a statement, however, he and Sen. Charles Schumer, D-N.Y., announced they would introduce emergency legislation to stop the deal when the House and Senate reconvene next Monday. The Associated Press reported Tuesday that President Bush said he would veto the legislation.

The interagency Committee on Foreign Investments in the United States, on which the Homeland Security Department sits, has approved the sale. But news of the deal has outraged many members of Congress.

"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," Collins and Lieberman wrote. "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."

"We believe that the administration should be working more closely with Congress where acquisitions are of such a sensitive nature," the senators stated. "In addition, we will be looking into the DHS role in the CFIUS process to ensure appropriate consideration of homeland security concerns."

Thompson asked for hearings to review the Committee on Foreign Investments in the United States process as it relates to homeland security, to examine foreign ownership issues related to transportation security, and to review foreign ownership of critical U.S. infrastructure, including telecommunications, Internet and technology companies.

"It is very likely that this CFIUS decision will not be the last involving matters critical to homeland security and this committee's interest," Thompson said.

But DHS Secretary Chertoff said during media interviews Sunday that the sale has been given "a very thorough review." He declined to elaborate, saying specific details are classified.

"We make sure there are assurances in place, in general, sufficient to satisfy us that the deal is appropriate from a national security standpoint," Chertoff said on ABC's "This Week."