Thursday, February 23, 2006

AP: Arab Co., White House Had Secret Agreement

This is an interesting twist in the controversy over the takeover of American ports by a state-owned company based in the United Arab Emirates. The existence of a secret deal is especially troubling in light of Scott McClellan's claim that the President had only learned about the deal after it had already been approved.

"The Bush administration secretly required a company in the United Arab Emirates to cooperate with future U.S. investigations before approving its takeover of operations at six American ports, according to documents obtained by The Associated Press. It chose not to impose other, routine restrictions.

As part of the $6.8 billion purchase, state-owned Dubai Ports World agreed to reveal records on demand about "foreign operational direction" of its business at U.S. ports, the documents said. Those records broadly include details about the design, maintenance or operation of ports and equipment.

The administration did not require Dubai Ports to keep copies of business records on U.S. soil, where they would be subject to court orders. It also did not require the company to designate an American citizen to accommodate U.S. government requests. Outside legal experts said such obligations are routinely attached to U.S. approvals of foreign sales in other industries."

Arab Co., White House Had Secret Agreement [Associated Press]