Thursday, March 09, 2006

Dubai Stops Port Deal

Dubai has pulled out of the Port Deal per the AP:

Bowing to ferocious opposition in Congress, a Dubai-owned company signaled surrender Thursday in its quest to take over operations at U.S. ports. "DP World will transfer fully the U.S. operations ... to a United States entity," the firm's top executive, H. Edward Bilkey, said in an announcement that capped weeks of controversy...............


On face value I understand the concerns over the Port Deal, but I think it's wrong. UAE is a good ally in the Middle East and the US would control all security over ports just like it does now. Telling a strong ally that they are not worthy to own a company because they are Arabs is wrong and racist I say. The 2006 election drove this deal and I understand that, but it does not make it right..........................................It is wrong...............

This decision will hurt us in the region and in the GWOT. Here is the early reaction from the UAE:

Dubai is threatening retaliation against American strategic and commercial interests if Washington blocks its $6.8 billion takeover of operations at several U.S. ports...................A source close to the deal said members of Dubai’s royal family are furious at the hostility both Republicans and Democrats on Capitol Hill have shown toward the deal. “They’re saying, ‘All we’ve done for you guys, all our purchases, we’ll stop it, we’ll just yank it,’” the source said..............


I don't blame them and I'd do the same thing.....................................This is a very bad move by both parties and our country.....................We need to be making allies in the region, not insulting those we have..............

I think this could be a major factor in the 2006 election but I'm not sure exactly how it will play out. Conventional wisdom would say that those who opposed the deal will be viewed favorably on defense. I'm not so sure about that. I think it might well be that they will be ultimately viewed as very short sighted when it comes to comprehension and understanding the complexity of the GWOT, and the damage that this will end up doing.....................I don't know if I have ever seen a whore-out by both parties over public opinion like we have seen on the Port Deal................