Since Sept. 11, our nation has focused efforts on securing our
homeland. However, America's seaports are still among our most vulnerable
targets. And the recent decision to allow a company controlled by the
United Arab Emirates (UAE) to run the port terminals in six U.S. cities
from New York to Miami, without careful review, has rightfully caused
concern across the nation.
While the jury is still out on whether Congress should block the deal,
the questions being raised are troubling. On its face the proposal doesn't
strike me as being sound policy at this point in our nation's history.
Congress needs at least 45 days to sort out what it means for our national
security.
Secretary of Homeland Security Michael Chertoff and others claim we
shouldn't worry because federal agencies, not marine terminal operators,
are responsible for security. Saying terminal operators aren't involved in
port security is like saying American Airlines has nothing to do with
aircraft security.
Marine terminal operators schedule the traffic in and out of terminals.
They load and unload cargo. If Customs or the Border Patrol wants to
inspect a cargo container, they work with the terminal operator to make
the container available. They hire security guards and manage the
technology that protects the terminals. This function makes the terminal
operator an integral component in port security and subjects their
operation to legitimate scrutiny.
As James Fox, deputy executive director of the Port Authority of New
York and New Jersey said in a letter to me, "To make a statement that the
terminals do not play a role in the security checks and balances at the
terminal is off-base."
Terrorist infiltration of a terminal operating company could jeopardize
thousands of lives and wreak havoc on our economy. Both the administration
and Congress need time to scrutinize this deal and determine the level of
threat - if any - the sale would incur.
It is true the UAE has been a helpful ally in the war on terror and we
are grateful they allow American and coalition ships to use their ports.
However, we also need to understand it's been a problem in the past.
The UAE had direct ties to terrorists and the groups that sponsor them.
In fact, according to the 9/11 Commission report, an emirate from the UAE
helped thwart an operation aimed at killing Osama bin Laden two years
before the 9/11 attacks. The UAE has also served as a willing conduit of
money directed to finance terrorist front-groups and operations. It also
was one of three nations to recognize the repressive and brutal Taliban
regime.
This controversy can and should be used to bring about better port
security. Only 5 percent of ship containers are currently inspected before
reaching American waters. However, the private sector has promising
technology, using X-ray equipment and screening for nuclear materials that
could lead to inspecting virtually 100 percent of containers.
This inspection, at the point of origin, would add only about $20
shipping costs to scan every container. The federal government would then
need to set up a system to review the scanned images to search for
contraband weapons or nuclear materials. I hope the Bush administration
embraces a 100-percent inspection policy regardless of the additional fees
that may be required and the outcome of the UAE deal.
This transaction has also raised serious concerns about the process we
use to approve foreign acquisitions. The Committee on Foreign Investment
in the United States (CFIUS) was created to examine the impact of foreign
acquisitions of United States companies or infrastructure which could
affect our national security. It empowers the president to block any
transactions that could pose a risk to the security of our nation.
Unfortunately, CFIUS has not operated as designed. A September 2005
study from the Government Accountability Office (GAO) concluded the
Department of Treasury, which chairs the committee panel, narrowly defines
what constitutes a national security threat. The Defense, Homeland
Security and Justice departments have all argued this narrow definition is
not sufficiently flexible to protect our national security needs. The GAO
also said the CFIUS panel has been reluctant to begin the longer, more
thorough 45 day investigations because they may conflict with our nation's
open investment policy.
In the case of Dubai Ports World, CFIUS failed to fully review this
acquisition. We have learned the president and his Cabinet were unaware of
the deal until after the review was concluded. Clearly, this is not how a
strategic acquisition should be approved.
At this point, the transaction has raised more questions than answers.
The time has come for Congress to take a critical look at this deal and
the process that allowed us to get to this point. Until our questions and
concerns are addressed, this deal must be put on hold.
Lindsey Graham is a Republican U.S. senator for South
Carolina.