www.cbsnews.com/stories/2006/03/10/politics/main1388791.shtml
forced the reversal of a deal allowing a company in Dubai to take over operations of six American ports, saying it sent a bad message to US allies in the Middle East. Mr Bush said the United States needs moderate allies in the Arab world, such as the United Arab Emirates, to win the global war on terrorism. The president said he had been satisfied that security would be sound at the ports if the Dubai deal had taken effect. "Nevertheless, Congress was still very much opposed to it," Mr Bush said. He made his remarks to a conference of the National Newspaper Association. "I'm concerned about a broader message this issue could send to our friends and allies around the world, particularly in the Middle East," the president said. "In order to win the war on terror we have got to strengthen our friendships and relationships with moderate Arab countries in the Middle East. They are a key partner for our military in a critical region, and outside of our own country, Dubai services more of our military, military ships, than any country in the world. "They're sharing intelligence so we can hunt down the terrorists. They helped us shut down a world wide proliferation network run by AQ Khan," the Pakistani scientist who sold nuclear technology to Iran, North Korea and Libya, he said. Shortly after Bush's appearance, the administration announced a postponement in the next round negotiations aimed at reaching a free trade agreement with the UAE, but wouldn't say whether it was related to the fallen ports deal. The office of US Trade Representative Rob Portman said merely that the next round of talks were put off to allow both sides more time to prepare. Meanwhile, the Dubai-owned company that pledged to surrender its $700 million worth of US port businesses amid a furor on Capitol Hill wants to guarantee it doesn't lose money on the deal. But now that DP World is out of the political frying pan, it could find itself confronting a fire sale of its American assets. CBS News senior White House correspondent Bill Plante reports the announcement came about after the company's consultations with White House political strategist Karl Rove. In its statement, DP World said its decision was based on the understanding that "DP World will not suffer economic loss." But experts believe it's unlikely DP World can sell its newly acquired US business for $700 million, given the political pressure to quickly hand over those operations to an American company. They warned this could become an expensive case of buyer's remorse. "It does seem like they're unloading this in the equivalent of a fire sale," said William Reinsch, president of the National Foreign Trade Council and a former senior Commerce Department official. PSA, the world's fourth-largest terminal operator, withdrew from bidding Feb. The British firm manages and runs important port operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. It also plays a lesser role in dockside activities at 16 other American ports.
Port Controversy Not Over Even though an Arab-owned company has decided not to follow through with its deal to operate six American ports, President Bush is still in the hot seat over port security.
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