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Tuesday, February 21, 2006

Port Deal Opposition Grows

A deal permitting a United Arab Emirates company to take over ports in New York and other cities ran into more opposition Tuesday when Republican leaders called on the Bush administration to put it on hold. In response, President Bush said the deal would go ahead and that he would veto any effort to stop it. He said the seaports arrangement had been extensively examined and was "a legitimate deal that will not jeopardize the security of the country."

Yet opposition to the deal by lawmakers ups the ante in the dispute with the White House over the deal to allow Dubai Ports World, a state-owned firm, to buy the company that runs U.S. seaports. "The decision to finalize this deal should be put on hold until the administration conducts a more extensive review of this matter," said Senate Republican leader Bill Frist (R, Tenn.), according to the Associated Press. "If the administration cannot delay this process, I plan on introducing legislation to ensure that the deal is placed on hold until this decision gets a more thorough review." House Speaker Dennis Hastert (R, Ill.)backed Mr. Frist by asking that the deal be suspended until after a more thorough review. Critics have noted that some of the Sept. 11 hijackers used the United Arab Emirates as a base. They contend the UAE was also an important transfer point for shipments of smuggled nuclear components sent to Iran, North Korea and Libya by a Pakistani scientist. Republican Rep. Peter King and Democratic Sen. Charles Schumer said they would offer emergency legislation next week to block the deal ahead of a planned March 2 takeover. Several other lawmakers have come out against the deal, including Republican Governor George Pataki. Democratic Sen. Robert Menendez of New Jersey said Monday that he and Sen. Hillary Rodham Clinton would introduce legislation prohibiting the sale of port operations to foreign governments.
©2006 Crain Communications Inc.

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