[Vision2020] Letter from ID Senator Crapo re ports

[James Reynolds]

Thank you for contacting me to express your concerns about the security of
United States' seaports.  I agree with you and appreciate your comments.

I share your deep concerns about America's safety and security, especially
in the wake of the September 11, 2001 (9/11), terrorist attacks.  As a
powerful, prosperous nation that is a target of violence around the globe,
America must remain vigilant in combating security threats for reasons of
both national security and international responsibility.

As you may know, a company based in the United Arab Emirates, Dubai Ports
World, recently attained operational control of terminals in six major
American ports - New Orleans, Miami, Baltimore, Philadelphia, New York,
and New Jersey - after purchasing the London-based company that had
previously overseen the ports.   By purchasing the London-based company,
Dubai Ports World will not attain ownership of the American ports in
question, but would lease and run the operation of container terminals by
managing the physical equipment and movement of containers on and off of
ships.  Ports are publicly owned facilities, typically by state or local
authorities.  The employees working at the terminals will remain U.S.
longshoremen.  Regardless of the outcome of the sale, the U.S. Coast Guard
and Customs and Border Protection will remain in charge of security of our
ports and shipped containers.

The sale was reviewed and approved by the Committee on Foreign Investment
in the United States (CFIUS), which examines security threats relating to
foreign purchases of American assets.  CFIUS was established in 1988 to
provide a government review of purchases of U.S. companies or assets by
foreign entities with "national security" implications.  Under this review
process, the 12-member committee, chaired by the Treasury Department, is
empowered to review proposed purchases and make recommendations to the
President, who can deny the acquisition if credible evidence exists that
the foreign entity exercising control could take an action to threaten
national security or if no other provision of law can protect the national
security absent the denial.  Since CFIUS is part of the Executive Branch
of government, Congress did not have a hand in the original examination
and approval of this sale.

Despite CFIUS approval, legitimate concerns remain about the sale,
especially given the fact that the United Arab Emirates served as an
operational and financial base to some of the 9/11 hijackers.  In response
to the strong public and Congressional outcry, Dubai Ports World will
undergo a further 45 day review of the acquisition by CFIUS.  The Senate
Banking Committee, of which I am a member, is also currently reviewing
this issue in a series of hearings.  I fully support the delay of the
sale's closure to allow for further review of the deal and look forward to
examining the findings of the 45 day review and the results of the Banking
Committee hearings.

It is the duty of Congress to ensure the security of our ports by closely
examining this and other national security transactions.  In the current
world environment, we must carefully scrutinize situations that could put
American lives at risk.  Investigations must be focused on what is best
for maintaining and protecting the security of the U.S. and the flow of
commerce through our ports and not be bogged down by partisan bickering
and posturing.  I remain committed to the vigorous protection of America's
safety, sovereignty and security.  Please rest assured I will work with my
colleagues in Congress to ensure the continued safety of our ports and the
prevention of future terrorist attacks.

Again, thank you for contacting me.  Please do not hesitate to contact me
in the future on other matters of interest to you.

Sincerely,Mike Crapo
United States Senator

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