My goodness, this whole issue about the ports has really metastasized. It is blowing up the blogosphere and traditional media both.
Since everyone and their brother has already discussed it in extensive detail, I should probably leave this alone. But I know people read what I wrote and are curious how I would respond to all these new facts and reports coming out, although it’s getting a little lonely being aligned with just Jimmy Carter on the “left” side of this issue.
First let’s get rid of the dead weight or irrelevant or wrong “facts”:
- Dubai Ports World (DPW) will be controlling our ports! – Wrong. That was and always will be the job of the (American) Department of Homeland Security, not just at the ports DPW would operate but at ALL ports nationwide.
- DPW is buying our ports! – No, they are just the port/terminal managers. The ownership remains in the hands of the American government.
- Bush is handing over our critical infrastructure to DPW! – No, being the manager of a port doesn’t make you in charge of “critical infrastructure”. The people in charge of the ports have ALWAYS been and will always be American law enforcement
- DPW will bring in a bunch of foreigners to take American jobs! – No, the majority of work at ports is conducted by American unionized longshoremen. This will not change if DPW is given the contract.
- I saw a picture of Bush holding hands with the Dubai royal family! – No, actually most of the photos I’ve seen on the blogosphere in connection with this story were of the Saudi royal family and Bush.
- Two of the 9/11 hijackers were from the UAE! – Yes and even assuming that’s accurate, so what? Show me the ties between the Dubai royal family and the 2 UAE hijackers and then I’ll get concerned.
Ok so those are the silly or irrelevant issues. Let’s get down to the meatier issues:
Bush secretly nominated UAE executive before the ports deal – Here’s a link to the basic elements of this story. It’s true that Bush nominated a DPW executive to the position of Maritime Administrator, a top post inside the Department of Transportation. The man he nominated is Dave Sanborn.
He is an American citizen and has been one all his life. He is the director of DPW’s operations in Europe and Latin America so he clearly has plenty of experience in the field (unlike many other of Bush’s appointees). Sanborn graduated from the U.S. Merchant Marine Academy, was a former exec at a host of other (non-Arab/UAE) shipping companies and served in the Naval Reserve. And his nomination wasn’t “secret” but done in the normal, public way. I haven’t seen a scintilla of evidence that this guy is unfit for the job and in fact seems to be extremely qualified for it.
White House had secret deal with DPW – Link to this story here. Aside from the race-based title of the AP article, if you look farther down in the story it says A) the conditions of the sale of P&O to DPW were confidential trade secrets and this is normal and B) the fact that DPW won’t be required to keep its records for a specific period of time on U.S. soil is “routine” for other companies doing similar business.
Bush administration failed to conduct required investigations before approving deal – Link to this story here. This one is fairly accurate. The CFIUS board, which oversees all direct foreign investments in the U.S. did their original 30 day review of the sale. They did however fail to do the 45-day follow-up review which seems fairly clear was mandated by a 1993 law. It says the 45-day second review is mandatory where the business is “acting on behalf of a foreign government”. In this case, DPW is owned by the Emirate of Dubai, which is almost and sort of a foreign government but not exactly the same thing as the UAE government.
Secondly the 45-day review is mandatory where the sale could “affect the national security” of the U.S. This seems to be fairly self-evident yet at the same time DPW is just the port managers, not handling or providing security therein. It’s a public cargo port not a military base, and DPW would be overseeing other companies handling of commercial merchandise not anything classified. I agree the 45-day second review should’ve been conducted but it’s hardly the glaring omission that people are making it out to be.
The UAE royal family love Osama bin Laden – Ahh this is the one that’s got everyone upset (story here). Ok, the meeting between the UAE royals and bin Laden was in Afghanistan prior to 9/11. At the time, the UAE, Saudi Arabia and Pakistan had all recognized the Taliban government as legitimate and therefore visiting the Taliban was nothing unusual for them. The UAE “royal family” however does not exist.
The UAE is a loose federation of 7 sheikhdoms (akin to kingdoms in Europe) with each one having its own royal family. Therefore there are seven different royal families in the UAE and lumping them together like as in Kuwait and Saudi Arabia is disengenuous. The “government” of the UAE is actually a council of the 7 emirate rulers who then pick a president and prime minister, who are in fact themselves. For example, the current president of the UAE is Sheikh Khalifa bin Zayed Al Nahayan, who is also the head sheikh of the Emirate of Abu Dhabi (and a member of the council).
Dubai is run by Sheikh Mohammed bin Rashid Al Maktoum and he is currently the UAE’s prime minister. At the time the “UAE royal family” was in Afghanistan, his elder brother Rashid bin Saeed al Maktoum was the head sheikh of Dubai and was the guy who allegedly met with Osama bin Laden. The current sheikh of Dubai even has his own website in English. On there is a transcript the Sheikh gave in 2001 after the 9/11 attacks and he was questioned about bin Laden:
Gulf News: …Second of all, I’m sorry about this question, but there have been, going by what Ra’id said, there have been too many rumours about money laundering, about the…safety of the financial system in the UAE and about, I’m sorry about this again, Osama bin Laden being treated at the American Hospital in Dubai last summer. How do you reply to these rumours that would really assure all that Dubai does not accommodate such activities?
SM: …if you say that the other question is that Bin Laden came to Dubai – the American Hospital? I think the hospitals are built to treat sick people. But I think, when they were asked, they denied this news. And about money laundering, we are in full work with international people and we are fighting this and I can assure you the UAE is a very safe place and, if there is any money laundering, that they will be caught.
Indeed. And that question is extremely relevant to George Tenet’s claim that the CIA could’ve hit Osama in Afghanistan but didn’t do so or else it would “wipe out half the royal family” of the UAE. The report (from leading French daily Le Monde) is that Osama went to the hospital in Dubai in July 2001 for some kind of kidney dialysis treatment. Except that the original story says that the CIA met with bin Laden while he was there. So which is it? They had a chance to hit him in Afghanistan but failed to do so or they met with him at his hospital bedside in Dubai? You can’t have it both ways.
The same article does state this:
On September 27th, 15 days after the World Trade Center attacks, at the request of the United States, the Central Bank of the Arab Emirates announced an order to freeze assets and investments of 26 people or organisations suspected of mainting contact with bin Laden’s organization, and in particular at the Dubai Islamic Bank.
So if anyone in Dubai or the UAE was doing any “money laundering” for bin Laden, it seems they switched allegiances right after the 9/11 attacks. Which brings me to the next topic.
UAE is money-laundering capital of the world – Yes, it’s been alleged and by some diaries on DailyKos. Except that the United Nations has a very different view:
The UAE’s anti-money laundering law has been selected by the United Nations as a model which should be adopted by other states to contribute to global efforts aimed at putting an end to the world’s most alarming “white-collar” crime. According to Michael A. DeFeo, Consultant, Terrorism Prevention Branch of the United Nations Office on Drugs and Crime, legislative actions of the UAE are considered highly important to the Vienna-based international organisation dealing with drugs, crimes and terrorism.
Speaking at a two-day workshop on terrorism organised by the Ministry of Justice, Islamic Affairs and Awqaf, in collaboration with UNODC, DeFeo said in a presentation that the UAE had constituted the main part of the US Department of State report at the meeting of Counter Terrorism Action group of G-8, the organisation of the eight largest economies of the world, on February 13. The workshop was organised on March 2,3, at the Armed Forces Club in Abu Dhabi.
“The US report was extremely complimentary. It described how the UAE’s law had clear definitions, criminalised deposit as well as conversion or transfer of funds to disguise their illegal origin,” “Khaleej Times” quoted DeFeo to have noted. He said the UAE was described as a leader in addressing the Hawala money transmitting system, adding that the UAE, according to G-8 representatives, should be a model for other countries.
So the UAE has not only frozen bank accounts related to Al-Qaeda and/or bin Laden, but their laws are “models” for other countries to base theirs on. And that comes from not only the United States but the G-8 as well. Does that mean the UAE never “laundered” or helped finance bin Laden? No of course not. But using such rhetoric as “money laundering capital of the world” is inflammatory at best.
Here’s some more facts about the UAE’s financial system:
The UAE has also implemented the anti-terrorism financing regulations passed by the UN Security Council. These include resolutions 1373, 1390, 1267, 1333 and other related resolutions. Following requests received to investigate under these resolutions, the Central Bank and the AMLSCU issued search and freeze orders to banks, moneychangers and other financial institutions operating in the UAE.
You have to understand that the Emirate of Dubai is a little different from the other 6 emirates in the sense that almost none of its revenue comes from oil. Dubai makes its money by being an “economic zone” where taxes are extremely low or non-existant, and this includes the Port of Dubai, ranked 13th in the world for traffic. Dubai is also a “financial hub” and the location for lots of banks, most of them foreign.
Essentially Dubai’s wealth comes from the vast amount of trade conducted within its borders, whether that’s via aircraft, maritime vessel or through its many banking centers. It also has become an IT hub with big companies like Microsoft, IBM and Oracle operating there as well. Dubai is also a major tourist destination, partly for the luxurious resorts and hotels and partly for the tax-free shopping at numerous upscale malls.
The point being that billions of dollars flow through Dubai (a substantial portion from westerners) and the vast majority of this has nothing to do the Dubai royal family. And since 2001, the UAE had indeed imposed strict laws and rules on its financial systems to curb and eliminate money laundering.
There are roughly 1.1 million people living in Dubai but about 80% of those are non-citizen foreigners, meaning there are only about 300,00 actual citizens. And the royal family which controls Dubai is immensely wealthy. Therefore while yes it is true they own Dubai Ports World, this is just one of many hundreds of companies they own and does not imply some kind of day-to-day management by the Sheikh or his family.
So let’s assume that is true that Dubai’s former sheikh (now dead) and ruler was best buddies with Osama bin Laden and even helped finance him and/or launder money for him. Well the same is true for the Saudi royal family, but of course this was all before 9/11. What’s happened since then?
The UAE (including Dubai) have recognized the Karzai government of Afghanistan. They have cracked down severely on money laundering and have frozen bank accounts related to or belonging to terrorist groups. And they have arrested several high-ranking Al-Qaeda members, including Abdel-Raheem Al Nashiri, described as Al-Qaeda’s top guy in the Gulf region, and turned him over to the United States.
Once a Terrorist Supporter, Always a Terrorist Supporter – Ok, so if the fact that they were previously connected to terrorists and supported them rules them out from doing any major business with the United States then I have a question.
In December 2004, Dubai Ports (now Dubai Ports World, the same company) paid 1.15 billion for the port assets of the CSX Corporation, which is an American company. Where was the hue and outcry then? They bought out CSX’s entire global network of ports, so if they are evil terrorist-harborin’ money-launderin’ thugs, why was this sale allowed to go through without a single peep in protest?
Some people point out that the current Treasury Secretary John Snow was once the CEO head of CSX, and now he’s one of the people who approved the P&O sale to DPW. All that is true but the question remains, why was selling CSX’s entire global network somehow fine and dandy yet the sale of P&O’s management of six ports a massive breach of American security?
Another Dubai company (owned by the Dubai royal family) is also the third largest stockholder in Daimler-Chrysler. Various other Dubai corporations also own several Holiday Inn hotel and parts of the Royal Bank of Scotland, not to mention the Helmsley Building on New York’s Park Avenue. And on and on, the point being that some Dubai corporations are quite wealthy and they own a lot of property and other companies (either in part or outright).
So either Dubai companies are allowed to do business in the United States or not but there is no difference between them operating a port in Baltimore and having a stake in building cars in South Carolina because neither of those transactions involves controlling American security. Dubai Ports World manages ports across the globe including in places like Romania, Germany and Australia. None of those countries wants to increase their vulnerability to terrorists and/or Al-Qaeda and they have not had any problem with Dubai Ports World whatsoever.
Do I think that Dubai, its royal family and Dubai Ports World are some kind of angelic creation capable of doing no wrong? Absolutely not. But I’ve yet to see one iota of proof that having Dubai Ports World manage terminals around the world has caused any harm whatsoever to those countries’ security. If you want to use their previous actions/associations against them to prevent them from doing any business in the USA, then just stand up and say so but don’t make out like the management of some ports is somehow radically different than owning a major share of Daimler-Chrysler.
In addition I just saw this via the Customs and Border Patrol.
P&O operate, and DPW would operate:
Baltimore – 2 of 14 total terminals
Philadelphia – 1 of 5 terminals (does not include the 1 cruise vessel terminal)
Miami – 1 of 3 terminals (does not include the 7 cruise vessel terminals)
New Orleans – 2 of 5 terminals
Houston – 4 of 12 terminals
Newark – 1 of 4 terminals
So even if the deal is approved, DPW would not operate/manage the entire ports in question.
Now it’s time for a post-script:
- In my last diary there was the appearance that I was saying that anyone who disagreed with the sale was doing so for racist or bigoted reasons. I apologize that this came across that way. I saw many xenophobic and bigoted statements coming from some who opposed the sale but by no means is this true for everyone who opposes the sale. I have great respect and admiration for many fellow members of this website who opposed and still oppose this sale.
- Some people jumped on me saying this is a golden opportunity to knock Bush down, especially since both the Republican leadership and the wingnut blogs are also opposed to the sale. That’s fine and true and I don’t disagree with that. I am not a political analyst and I’ll leave that to others. What I write is based solely on my own opinions and research and definitely is not related to what’s the “hot button” to push in politics.
- I still think that the REAL ISSUE that Bush and company could and NEED to be hammered on is the fact that ALL of America’s ports are not secure and severely underfunded. Even if the DPW deal falls through, our ports will remain vulnerable unless the same level of outrage is applied at the way security at our ports has been handled, including at those operated by American companies.
