Dubai Limps Into Port

THE ferocity of United States legislators' opposition to a United Arab Emirates company gaining control of a number of key American ports is getting out of control. The US government has approved the commercial deal, in so far as Dubai Ports World's acquisition of the British P&O's worldwide assets include a half dozen US ports. But congressional figures and port-city officials fear security breaches, as ports are vulnerable choke points. This is not unreasonable, except that they are by extension casting aspersions on an Arab country which President George W. Bush and his Defence Secretary have praised as being a reliable ally in the terrorism fight. It is reasonable to ask why the legislators never had a problem with a British company managing the ports, as Britain is not free of terror operatives. Additionally, the lawmakers take a dim view of any company controlled by a foreign government acquiring American assets loosely considered strategic. This is introducing considerable uncertainty to the conduct of private business. That a business deal has taken on an entirely different complexion is clear in congressional leaders saying they would bring legislation to undo the transfer, and Mr Bush saying he would veto such laws.

While this shapes up as a new headache for Mr Bush, as he is taking on his own party's legislative captains with congressional elections not far off, foreign companies and governments with US deals in mind are not going to be comfortable with an extra-legal strand they have to deal with. Globalisation? This is segmentation. The furor over Dubai Ports World is much in character with a tendency among a growing number of US legislators to cite all-embracing security and strategic concerns when they disapprove of overtures on political grounds. The Chinese state oil company CNOOC had its bid for US-based Unocal vaporised in a congressional firestorm, even before it reached the President's desk for his consideration. There are as many scaremongers and nationalists as there are sober defenders of the national interest in the US legislature. A thought: How might Temasek Holdings have fared with these enforcers if it had won the ports deal in the contest with Dubai? Temasek is a state agency, Singapore yields to no one in the fight against terror. Would being located in a region where terror is active be a certifiable handicap or an endorsement for preparedness?