Fear and Cronyism

By Mimikatz

The first lines in the SF Chronicle article say it all:

"The collapse of the Dubai port deal was a victory for the politics of fear.

Democrats saw an opportunity to exploit the terrorism anxieties that have been used against them for the past two elections. Republicans faced the prospect that following their president could cost them the November midterm elections.

The result was an extraordinary bipartisan consensus to stand up to President Bush and shut Arabs out of U.S. ports, killing a deal that security experts generally agreed presented no threat. "

Depending on who you read, Dubai Ports World agreed to divest itself of its US port operations involved in the deal because lobbyists close to the GOP suggested they do so (NY Times) or Bush asked them to (ABC News).  In any event, according to an article by Jonathan Weisman and Bradley Graham that seems to have disappeared from the WaPo website, only a few companies might be willing to buy Dubai Ports World's North American operations.  One potential company is SSA Marine, A Seattle-based company that is the largest US-owned terminal operator.  Another is the Carlyle Group, with whom both  Bushes have been associated.  Carlyle bought the US container shipping business of CSX Corp (Treasury Secretary Snow's former firm) in 2002 and sold it two years later for $ 650 million.  (CSX also sold its own port operations to Dubai Ports World in 2004 for $1.15 billion, and David Sanborn, who heads Dubai Ports World's European and Latin American operations, was appointed in January to head the US Maritime Commission.)  The Dubai government has invested in Carlyle, and "put $100 million into its latest, $7.85 billion buyout fund." according to Weisman and Graham.  So don't fret, everyone who matters will make out alright on this deal one way or another.

Comments

[John Casper]

Thanks Mimi, imo, the SFChroncile got it wrong in using the word, "divest." NYT's uses the word, "transfer," to a U.S. "entity." I don't think this alters in any way the thrust of your fine post, "crownyism." It is, however, imo another naked attempt by the WH to circumvent Congress, eg. recess appointments, pre-war intelligence, NSA....,. Senator Elizabeth Taylor in this very dramatic moment reads the Dubai letter in the Senate, the Trojan Horse, Dubai is "withdrawing." No, they're not. Dubai is simply going to "transfer" their equity to a U.S. "entity," a legal shell. Just my opinion about this, no real facts to back it up beyond that the WH likes to get its way, since the separation of powers is so pre-9/11.

[Mimikatz]

"Crownyism"--what the boy king practices. I love it.

[jwp]

M,

I usually agree with you, but not today.

There is a nuke threat loose in the world, and there are people close to Dubai crony elite who both have a bomb and -- another group -- who would lilke to use one on the US.

The only realistic delivery system is a ship.

Nationalize port security, and make it real.

The public is not crazy. We should be far more serious about this business.

[Mimikatz]

JWP- I agree with you that port security is woefully inadequate. But at a time when foreign companies are entrenched in American ports, overall port security and inspections would seem to pose the big issue, not precisely who leases which terminals. The way shipping is done now, contraband can be inserted at a foreign port in a closed container and shipped to any US terminal. There are far cheaper ways to accomplish what you fear than a multi-billion dolar purchase of a shipping company's assets. Hopefully the emphasis will now be on port security itself, not who owns the terminal leases.

[Caoimhín]

jwp,

just curious, how do we know that people close to the Dubai elite have a nuke?

[jwp]

C,

just referring to Pakistan

M,

I agree entirely with your analysis. But politics is theater. You have to have a news hook, or no one pays attention. Maddening. That is why I want EW to organize a consortium of universities to put together a program to rotate in 30 students to man a computer bank, and just organize the information available. Make information available in an organized, routine way.

Until then, there is no hope of getting attention to the port security issues you describe unless a celebrity is kidnapped and held in a container

or

some wingnut Gulf prince tries to buy the keys to the port.

silly. but until EW stands up to the plate, it is what we are stuck with

[Bill]

Hi ! Your site is very interesting. Thank you.