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US News

PREZ PIER-OUETTE – ‘MISTAKE’ NOT TO TELL CONGRESS SOONER

WASHINGTON – White House officials admitted yesterday they should have briefed Congress sooner about the administration’s approval of a deal to let a United Arab Emirates-owned company oversee operations at U.S. ports.

“We feel like Congress probably should have been briefed on this matter sooner, particularly in light of some of the false impressions that have been left in the minds of members of Congress,” said White House spokesman Scott McClellan.

“Looking back in hindsight, we believe members of Congress should have been briefed on it sooner.”

Trying to stem the firestorm from Republicans and Democrats in Congress, administration officials today will brief members of the Senate Armed Services Committee on the deal. Sen. Hillary Rodham Clinton, who has sharply criticized the plan, sits on the committee.

A secretive government panel approved a merger of British-owned Peninsular & Oriental Steam Navigation Co. and Dubai Ports World, which is headquartered in the United Arab Emirates – a nation that recognized the Taliban and whose citizens have been linked to terrorist financing.

President Bush has said the deal poses no threat to U.S. security, and other officials noted that the United Arab Emirates government has long supported U.S. military operations in the Persian Gulf.

“The transaction was closely scrutinized to make sure there are no national security threats,” McClellan said.

But the White House claims did nothing to convince opponents in Congress who were dug in. They insisted the merger shouldn’t go through and wasn’t properly scrutinized.

“There was no thorough investigation,” said Rep. Peter King (R-L.I.), chairman of the House Homeland Security Committee.

The Committee on Foreign Investment was the panel that OK’d the merger. But it typically does very little investigation of national security issues, says a report issued last September by the Government Accountability Office, an investigative arm of Congress.

That’s because the panel is focused on encouraging foreign investment and takes too little time – just 23 days – to complete its probes, the GAO report said.

McClellan also admitted that Bush was unaware of the merger until after the Committee on Foreign Investment approved it.

The president should have been told about the deal sooner, said Rep. Vito Fossella (R-S.I.)

“I think you have to ask the question: Why did it take so long to get to the top level?’ and make sure it never happens again,” he said

Bush’s GOP allies in Congress are set to join Democrats in passing a bill that would nullify the P&O merger – and defiant Republicans say they’d override Bush’s threatened veto.

“I will fight harder than ever for this legislation, and if it is vetoed, I will fight as hard as I can to override it,” said King.

Ted Bilkey, chief operating officer of Dubai Ports World, yesterday told CNN, “We’re going to do anything possible to be sure that this deal goes through.” Bilkey disputed the “misconception” that security at the ports would be compromised by the foreign government-owned company, saying, “We think our track record is pretty good.”

Additional reporting by Bill Sanderson

Puzzling

President Bush’s fellow Republicans are scratching their heads over the port controversy.

‘I think you have to ask the question: Why did it take so long to get to the top level?’ – Rep. Vito Fossella (R-S.I.)