Bush: Dubai ports storm hurts war on terror

WASHINGTON - President Bush said Friday he was troubled by the political storm that forced the reversal of a deal allowing a company in the United Arab Emirates to take over take over operations of six American ports, saying it sent a bad message to U.S. allies in the Middle East.

Bush said the United States needs moderate allies in the Arab world, like the United Arab Emirates, to win the global war on terrorism.

The president said he had been satisfied that security would be sound at the ports if the Dubai deal had taken effect. “Nevertheless, Congress was still very much opposed to it,” Bush said. He made his remarks to a conference of the National Newspaper Association, which represents owners, publishers and editors of community newspapers.

“I’m concerned about a broader message this issue could send to our friends and allies around the world, particularly in the Middle East,” the president said. “In order to win the war on terror we have got to strengthen our friendships and relationships with moderate Arab countries in the Middle East.”

“UAE is a committed ally in the war on terror,” Bush added. “They are a key partner for our military in a critical region, and outside of our own country, Dubai services more of our military, military ships, than any country in the world.

“They’re sharing intelligence so we can hunt down the terrorists,” Bush added. “They helped us shut down a world wide proliferation network run by A.Q. Khan” — the Pakistani scientist who sold nuclear technology to Iran, North Korea and Libya, he said.

“UAE is a valued and strategic partner.”

Talking to reporters later Friday, Secretary of State Condoleezza Rice echoed that concern.

"It means that we are going to have to work and double our efforts to send a strong message that we value our allies, our moderate allies, in the Middle East, that they are critical in the effort to winning the war on terrorism, that this is a long-term struggle in which we all find ourselves," she said.

Plan to transfer operations
On Thursday, the Dubai-based company signaled surrender.

“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.

Relieved Republicans in Congress said the firm had pledged full divestiture.

The announcement appeared to indicate an end to a politically tinged controversy that brought Bush and Republicans in Congress to the brink of an election-year veto battle on a terrorism-related issue.

“It does provide a way forward and resolve the matter so we can continue working on other important priorities,” said White House spokesman Scott McClellan.

'Strong relationship'
“We have a strong relationship with the UAE and a good partnership in the global war on terrorism and I think their decision reflects the importance of our broader relationship,” he said.

A leading congressional critic of the ports deal, Rep. Peter King, applauded the decision but said he and others would wait to see the details. “It would have to be an American company with no links to DP World, and that would be a tremendous victory and very gratifying,” said the New York Republican, chairman of the House Homeland Security Committee.

It was Sen. John Warner, chairman of the Armed Services Committee and a member of the Senate committee on Homeland Security and Governmental Affairs, who took the Senate floor to read to colleagues a press release from Dubai Ports World disclosing its new stance.

“Because of the strong relationship between the United Arab Emirates and the United States and to preserve that relationship, DP World has decided to transfer fully the U.S. operation of P&O Operations North America to a United States entity,” he read from a statement by Bilkey, DP World’s chief operating officer. The announcement did not specify which American company would be involved.

NBC VIDEO Blow to Bush? March 9: NBC Washington Bureau Chief Tim Russert analyzes the Dubai ports controversy. Nightly News

Warner said that Sheik Mohammed Al Maktoum, prime minister of the United Arab Emirates, “advised the company ... that this action is the appropriate course to take.” Dubai is in the Emirates.

“This should make the issue go away,” said Senate Majority Leader Bill Frist. The Tennessee Republican was one of several GOP leaders to tell President Bush earlier in the day that Congress was ready to ignore his veto threat and scuttle the deal.

Several Republican officials, speaking on condition of anonymity, said Frist and Sen. John Warner, R-Va., chairman of the Armed Services Committee, had been privately urging the firm to give up its plans.

MORE FROM SECURITY

Security Section Front

Tracking smugglers along the Mexican border 570,000 9/11 pager messages released U.S. offers $5 million reward for 'Bomb Man' New charges in Somali terror case Lawyer: Sept. 11 defendants want to air views Security Section Front   Add Security headlines to your news reader: