Arabaphobia Grips Politicos in Seaport Lease
By: Lindsey Williams
Washington politicos ought to get their Prozac prescriptions refilled – they are starting to hear things go bump in the night.
The prospect of tiny Dubai, one of seven United Arab Emirates, leasing six major American seaports has spooked even phlegmatic Republicans.
Let’s call it Arabaphobia. The symptoms are cogent: (a) the 9/11 pilot who flew a hijacked air liner into the second World Trade Tower was from Dubai, (b) Dubai recognized the Afghanistan Taliban when the Soviets invaded there, (c) some terrorist money originally passed through UAE banks.
Dubai once allowed Bin Laden to build a hunting camp there but expelled him when President Clinton complained. The UAE foreign minister said it had maintained relations with the Taliban because of “Iranian dangers.”
Since 9/11, however, UAE has become a close United States ally. American warships dock at Dubai for extended liberty calls. The emirate also refuels jets and spy planes at Dhabi across the Persian Gulf from Iran.
Our congressional leaders have been unhinged by the deadly persistence of Islamic terrorists in Iraq and Israel. We seem to have forgotten our Muslim friends of Jordan, Egypt, Algeria, Morocco, Tunisia, Libya, Sudan, India, Pakistan and Afghanistan.
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At issue is the sale of operating leases by the British firm Peninsular Oriental Steam Company for the seaports of New York, Baltimore, Newark, Philadelphia, Miami and New Orleans.
Purchaser of the leases — for $6.5 billion — is Dubai World Ports, a United Arab Emirates’ government-owned holding company.
Even Senate Majority Leader Bill Frist and House Speaker Dennis Hastert have visions of Arab Muslims smuggling an Iranian or North Korean black-market atom bomb in a shipping container.
Rep. Sue Myrick (R-N.C.) dashed off a letter to President Bush: “Dear Mr. President, in regards to selling American ports to the United Arab Emirates — not just no, but HELL NO!”
Congress – rushed into its “investigation” mode. The solons “demanded” what the lease agreement already provides – a 45-day review.
Bush let it be known he would veto any bill to void the agreement that has been vetted by 12 government agencies. The proposal was okayed because it was like others for U.S. seaport operations.
Leaseholders do not have proprietary rights – just the profit on fees for unloading, warehousing and reloading cargo onto trucks and trains.
The U.S. seaports involved remain owners of the dockside. Leaseholders own cranes, trucks, forklifts and buildings. Corporate employees decide the order of unloading, assigns storage space and schedules reloading.
American unions furnish labor by longshoremen. Security will not change. Everything is governed by the International Shipping and Port Security Code based on U.S. maritime laws adopted after 9/11.
The U.S. Coast Guard is responsible for overseeing implementation of the ISPS code. A Coast Guard officer is Captain of the Port responsible for coordinating all port security.
The Customs and Border Protection agency and the Coast Guard – not leaseholders – conduct security screening of cargo that enters the port.
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Globalization of maritime trade began after World War II. The U.S. sold Greek ship owner Aristotle Onassis 16 old Liberty cargo ships and 4 oil tankers for “scrap prices.”
Invention of modular shipping containers thereafter made overseas shipping affordable for mass manufactured goods and global markets.
The world’s largest seaport operator is the Hutchison-Wampoa Port consortium. It controls 138 locations– including holding berths at both ends of the Panama Canal. No complaints from shippers so far.
Hutchison-Wampoa has close ties to the Chinese Peoples Army weapon-sales department. It leased the closed Long Beach Naval Base in 1996 to build a seaport facility.
The deal was approved by Long Beach and President Clinton. An alarmed Congress nixed the deal.
Los Angeles and Long Beach financed the project through bonds. It now is the busiest seaport in the United States — primarily by shipments from China and India.
Congress will huff and puff about the Dubai lease but likely with approve it.
Nevertheless, it will be prudent to follow President Reagan’s advice about deals with foreign governments – “Trust, but verify.”
Lindsey Williams is a Sun columnist who can be reached at LinWms@earthlink.net or LinWms@lindseywilliams.org.
Website: http://www.lindseywilliams.org