WASHINGTON — Amid unyielding congressional opposition, an Arab company Thursday retreated from taking over operations at several U.S. ports, rescuing President Bush from a politically embarrassing showdown with fellow Republicans over a national security dispute.
Dubai Ports World said in a statement that it would "transfer fully" its stake in the U.S. facilities to a "United States entity."
It was not clear how soon that would happen or what American firm would assume the port management. And some lawmakers said they wanted further assurances that the company, a state-owned entity of the United Arab Emirates, would completely divest itself of any financial link to the U.S. port operations.
But many of the deal's GOP opponents declared victory.
"It's over," said Rep. Peter T. King (R-N.Y.).
As chairman of the House Committee on Homeland Security, King had helped lead a Republican attack on the ports deal that showed no signs of diminishing.
Despite White House efforts to defuse the controversy and defend the United Arab Emirates as an important ally in the war on terrorism, the Bush administration seemed relieved by the company's decision.
"It does provide a way forward and resolve the matter," said Scott McClellan, the president's spokesman.
The company's statement came hours after GOP congressional leaders told Bush at a White House meeting that lawmakers appeared determined to pass legislation blocking the deal. The legislators have been concerned that port security could be compromised.
Bush had threatened to issue the first veto of his presidency if he was sent such a bill. Although he apparently will be spared that step, the furor still may have cost him.
Emboldened congressional Republicans -- many up for reelection in November -- could be more willing to challenge the administration on national security, federal spending and other issues.
At the least, GOP leaders are hoping the episode spurs White House officials to improve communications with Capitol Hill allies.
"They're going to have to be a little more sensitive" to the opinions of Republican House and Senate members on crucial issues, said Rep. Thomas M. Davis III (R-Va.), referring to the White House.
The president "has not handled the port issue well," said Sen. Rick Santorum (R-Pa.), who is facing reelection. "I think we've been pretty clear about that" on Capitol Hill.
Broader debates also lay ahead.
