Senators seek to block P & O sale to Dubai Ports World through legislation

Senators seek to block P & O sale to Dubai Ports World through legislation
NEW YORK - Senators Hillary Rodham Clinton of New York and Robert Menendez of New Jersey are planning to introduce a legislation barring companies that are affiliated to foreign governments from getting a majority stake in American port operations.

The purpose of such legislation would be to block the proposed $6.8 billion sale of Peninsular and Oriental Steam Navigation, a British company to Dubai Ports World. The later is under the control of the Dubai government, which in turn is answerable to the government of the United Arab Emirates.

Peninsular and Oriental controls the "cruise ship terminal on the West Side of Manhattan" and also has a 50 percent stake in the Port Newark Container Terminal at New York harbor. The Bush administration has approved the deal in principle, but the Democrat Senators as well as a Miami company are making every effort to block the deal.

"Our ports are the front lines of the war against terrorism. They are both vulnerable targets for attacks and venues for smuggling and human trafficking," Mr Menendez said in an interview. "I just don't believe that our ports should be handed over to foreign governments. They can pursue their diplomatic relationship with the Emirates, but that doesn't mean we have to give our ports over to the Emirates."

He added that Dubai had a "serious and dubious history" while acting as a "transit point for terrorism." Hillary Clinton has also voice objections at this deal, "Our port security is too important to place in the hands of foreign governments," she said.

The flaring point for the leaders and also lawyers is that a panel headed by treasury secretary, John W. Snow has made it known that there is no objection to the deal on their part. Meanwhile, a Miami company, which is a division of Eller & Company Inc. has a lawsuit in Florida circuit court saying that because of the deal it would become an "involuntary partner with the Dubai government."