New Concerns on Port Deal Are Raised in Congress

By CARL HULSE
Published: March 1, 2006

Lawmakers raised new objections on Tuesday to the proposed takeover of some terminal operations at six United States ports by a Dubai company, demonstrating that the administration-backed plan still faced significant obstacles despite an agreement for a more extensive review of any security risks posed by the change in control.

Senate Democrats seized on a report that the parent company of state-owned Dubai Ports World honors an Arab boycott of Israel, saying the United States should not be rewarding companies tied to discrimination against a major ally. "This boycott not only violates at least the spirit of U.S. law," said Senator John Kerry, Democrat of Massachusetts, "it is inconsistent with everything we believe in as Americans."

A company official appearing at a Senate hearing acknowledged the boycott but said the firm worked with all customers at its facilities around the world. After a Coast Guard intelligence memorandum made public on Monday showed that the agency had initial security concerns about the deal, Senator Charles E. Schumer, Democrat of New York, joined on Tuesday with Senator Olympia J. Snowe, Republican of Maine, in urging the Department of Homeland Security to reveal whether other agencies under its umbrella had raised questions.

In the House, Representative Peter T. King, Republican of New York and chairman of the Homeland Security Committee, said he would proceed with legislation giving Congress the right to reject the proposed takeover if it was sanctioned by the president after the 45-day review. Mr. King, who said he had already attracted more than 60 co-sponsors of both parties, said he worried that the administration was viewing the 45 days more as a chance to lobby Congress than to investigate security concerns. "The administration has to educate itself," he said. "They have to conduct a full and thorough investigation."

http://www.nytimes.com/2006/03/01/politics/01port.html?_r=1&oref=slogin

The ports need to be american owned. This is ridiculous.

of air liner maintenance by the "virtual" airlines.