WASHINGTON — A key Republican said Wednesday that Treasury and Homeland Security officials privately told him the initial review of the firm planning to take over some operations at major U.S. seaports was far less thorough than described by administration officials in later statements.
In an interview with CNN, Rep. Peter T. King of New York, who heads the House Homeland Security Committee, said that there was "no investigation into terrorism whatsoever" in the review done by an administration committee examining the potential national security threats posed by the sale of British-based Peninsular & Oriental Steam Navigation Co. to Dubai Ports World, which is state-owned.
King's account -- based on discussions he said took place when the government's approval of the deal became public last month -- seemed to contradict the testimony of administration officials, including Director of National Intelligence John D. Negroponte, who have said repeatedly that the earlier review resolved any national security questions.
Also Wednesday, in a setback for the state of New Jersey, a federal judge ruled against the state's request for another investigation into the deal, saying the 45-day federal security review the company agreed to on Sunday should be sufficient. U.S. District Judge Jose Linares also refused the state's request for documents about the deal, saying they were confidential.
Under the $6.8 billion deal, Dubai Ports World would take over major commercial operations at terminals in New York, New Jersey, Pennsylvania, Maryland, Florida and Louisiana. New Jersey and other critics of the deal say it could compromise national security.
New Jersey Atty. Gen. Zulima Farber said that despite the judge's decision, she was satisfied because she thought the state's lawsuit prompted the company to agree to the new 45-day review.
Meanwhile, the Washington Post reported in today's editions that the Bush administration had launched a national security investigation of another Dubai-owned company set to take over plants in Georgia and Connecticut that make precision components used in engines for military aircraft and tanks.
The administration notified congressional committees this week that its Committee on Foreign Investment in the United States was investigating the security implications of Dubai International Capital's $1.2 billion acquisition of London-based Doncasters Group Ltd., which has subsidiaries in the United States, the Post said. The administration also was investigating an Israeli company's plans to buy the Maryland software security firm Sourcefire, which does business with Defense Department agencies, the paper said.
