The other shoe drops on the acquisition of port terminal operations by DPW

President Bush has said that he will veto any attempt to block the deal:

The Senate’s Republican leader had promised just such an effort a few hours earlier.

“After careful review by our government, I believe the transaction ought to go forward,” Bush told reporters who had traveled with him on Air Force One to Washington. “I want those who are questioning it to step up and explain why all of a sudden a Middle Eastern company is held to a different standard than a Great British company. I am trying to conduct foreign policy now by saying to the people of the world, ‘We’ll treat you fairly.'”

Bush took the rare step of calling reporters to his conference room on the plane after returning from a speech in Colorado, addressing a controversy that is becoming a major headache for the White House. He said the seaports arrangement had been extensively examined by the administration and was “a legitimate deal that will not jeopardize the security of the country.”

Earlier, Senate Republican Leader Bill Frist urged the administration to reconsider its decision to allow the transaction, under which a British company that has been running six U.S. ports would be acquired by Dubai Ports World, a state-owned business in the United Arab Emirates. Frist said he’d introduce a bill to delay the deal if the administration doesn’t do so on its own.

The British company, Peninsular and Oriental Steam Navigation Co., runs major commercial operations at ports in Baltimore, Miami, New Jersey, New Orleans, New York and Philadelphia.

“The decision to finalize this deal should be put on hold until the administration conducts a more extensive review of this matter,” said Frist. “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.”

Frist, who spoke to reporters in Long Beach, Calif., where he was on a fact-finding tour on port security and immigration issues, said he doesn’t oppose foreign ownership, “but my main concern is national security.”

Two Republican governors, New York’s George Pataki and Maryland’s Robert Ehrlich, voiced their own doubts a day earlier, as have other members of Congress.

But Bush, who has yet to issue a bill in more than five years in office, said sternly he would not back down.

“They ought to listen to what I have to say about this. They’ll look at the facts and understand the consequences of what they’re going to do,” he said. “But if they pass a law, I’ll deal with it with a veto.”

Glenn Reynolds smells a rat:

SO NOW BUSH IS THREATENING TO VETO any legislation that would block the Dubai ports deal? Either this deal is somehow a lot more important than it seems (a quid pro quo for, well, something . . . ) or Bush is an idiot. Your call.

Another possible explanation is that Bush means just exactly what he’s said: he’s thinking strategically. I do think that both the reaction of Republican senators and Congressmen and Bush’s reaction demonstrate that they’re feeling the heat from Bush’s low approval numbers.

My previous posts:

The temperature of the discussion of the acquisition of P&O by Dubai Ports World goes up a notch
The acquisition of P&O by Dubai Ports World step by step
More on the Dubai Ports World acquisition of P&O

UPDATE:  How many airport terminal operations are operated by foreign companies?  Companies wholly or in part owned by foreign governments?  Are those a security risk, too?

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