Republican Will Try to Squash Ports Deal

Ships unload at Port Elizabeth, New Jersey in this February 12, 2005 file photo. Dubai Ports World's Vice Chairman sought to soothe national security fears by saying in an interview published on Wednesday that the firm would not overhaul management at six U.S. ports on completion of a takeover bid. REUTERS/Chip East

This is big news. From Yahoo News:

WASHINGTON - One of the most prominent House Republicans on military issues said Thursday he would try to scuttle a Dubai-based company's effort to manage U.S. ports as lawmakers' complaints about the Bush administration's handling of the issue continued to spread.

"Dubai cannot be trusted," said Rep. Duncan Hunter (news, bio, voting record), R-Calif., chairman of the House Armed Services Committee and normally one of the administration's most trusted allies. He called the United Arab Emirates "a bazaar for terrorist nations" and asserted that the United States should not permit DP World to take over significant operations at six U.S. ports.

"I intend to do everything I can to kill the deal," Hunter said.

Across Capitol Hill, lawmakers criticized the Bush administration anew following disclosures that the United States had launched a fresh investigation Tuesday into a proposed business deal by a second Dubai-owned company. Also sparking the furor was word of a previously unconfirmed investigation into a separate transaction by a leading Israeli software firm.

The government initially approved DP World's $6.8 billion purchase of London-based Peninsular and Oriental Steam Navigation Co. But on Sunday, the administration agreed to a 45-day investigation of potential security risks to quell a political backlash.

"Too little, too late," Hunter said.

Rep. Duncan Hunter, Rep. CA

This is certainly not good for the Bush administration. The White House has been playing all the spin they could to get this deal through. But the Republicans in Congress are probably looking at two new factors here in this issue. The first is the latest CBS News poll showing the president's approval numbers dropping down to 34 percent. And not only are the president's approval numbers dropping, but the CBS News poll also shows that 7 out of 10 Americans disapprove of the Dubai ports deal (See my post on Bush's poll numbers here). These Republican congressmen know that if they allow the White House to push this deal through, it will be their heads on the chopping block, come November. Because if the Democrats are smart, they have a perfect political issue here to tar the Republicans on.

Of course, it gets better. Here's another little detail from the story:

Dubai International Capital LLC confirmed Thursday it faced investigation over its plans to buy a British precision-engineering company, Doncasters Group Ltd., with plants in Georgia and Connecticut that make parts used in engines for military aircraft and tanks.

Now that's a whole new post to comment on.