Dubai threat to hit back
March 10, 2006 6:10 AM   Subscribe

Dubai threat to hit back 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. But there are now two American firms who might get the port deal But we should not forget HalliburtonAnd Dubai senses Bush no longer has control , something that many Americans have also begun to feel in recent days, including and especially GOP folks up for reelection.
posted by Postroad (23 comments total)

This post was deleted for the following reason: um, they gave up on the deal yesterday



 
WTF? They just announced that they would give up on the ports yesterday, dumbass.
posted by delmoi at 6:13 AM on March 10, 2006


Dubai Company Drops Port Deal [NY Times, reg. req.]
"WASHINGTON, March 9 — The state-owned Dubai company seeking to manage some terminal operations at six American ports dropped out of the deal on Thursday, bowing to an unrelenting bipartisan attack in Congress that swept aside President Bush's efforts."
posted by LarryC at 6:21 AM on March 10, 2006


Hahahah! While it's rather cruder than I would have written, delmoi's comment is almost verbatim what was running through my head when I read this!
posted by darkstar at 6:21 AM on March 10, 2006


In the analysis I heard on NPR this morning, it was noted that the Dubai Company has announced it would "'transfer" the port operations to a US owned enterprise. The wording is important because apparently this leaves open the option of setting up a US subsidiary -- and from what I could tell from the discussion, this would simply be a way for the Dubai company to retain the port deal and the Bush administration to claim that a US company was now doing the managing. Everybody wins, well, at least as defined by the Bush Administration.
posted by bluesky43 at 6:32 AM on March 10, 2006


Postroad, do you just google the news every morning with a couple keywords?
posted by jonson at 6:32 AM on March 10, 2006


Not that this is over, folks. Watch the shell game commence. Hallibutron will end up the name on the masthead, DP World will still be involved. Look at the business and personal ties btwn DP World, Carlyle Group, and Halliburton and tell me you trust that this is anythin more than a strategic regroup.

But the sheeple will believe they won this round. It's still fun to watch the populists taste blood in the water and break away from the Bushies.
posted by fourcheesemac at 6:33 AM on March 10, 2006


To be fair, there's some question as to whether DPW has "given up" on the deal. They've said they'll sell control to a U.S. entity, but unless new details have emerged this morning we still don't know who that is or how they're related to DPW.

And the threat of economic retaliation is real, regardless of the status of the DPW deal. That Boeing contract is a big one, and losing it would hurt. Furthermore, NPR reported this morning from the UAE that Arab extremists are using the U.S. reaction to the ports deal to drum up more anti-American sentiment. All in all, while this whole kerfuffle has given Democrats a boost in their national security credentials and Republicans a way to distance themselves from an unpopular President, I still think this was an unwise battle to wage.
posted by schoolgirl report at 6:34 AM on March 10, 2006


You know what? George Bush was right about this. One thing I will say about the man is that he values your money equally no matter what race you are or country you're from. Truly a shining example of the new globalism.

If the republicans stop this deal and continue to not adequately fund real security measures at ports then this will just be a hollow victory for all involved, and no real principle other than scoring political points will have been exercised.
posted by Space Coyote at 6:35 AM on March 10, 2006


The first link is also from yesterday. I'm not an expert, but I would say from my gut that just because Dubai gave up on the deal doesn't mean they won't retaliate.

If you read the article, they are threatening to stop buying aircraft from Boeing, cease cooperation with the War on Terror, etc. in retaliation for the US sinking the deal.

I tried to find it, but I had seen some articles a week ago saying that Middle Eastern investors were very anxious about this deal, and if it didn't go through it could end up having fairly bad effects on trade with the region in general.

But seriously, the articles he linked to are written with the "give up" announcement in mind.... dumbass =P
posted by illovich at 6:39 AM on March 10, 2006


"they are threatening to stop buying aircraft from Boeing, cease cooperation with the War on Terror, etc. in retaliation for the US sinking the deal"

They may hate us, but that doesn't stop them from wanting our money, products and services.
posted by mischief at 6:46 AM on March 10, 2006


Interesting...

According Hoovers, CEO of SSAMarine (one of the companies which would get to take over the ports) is Jon Hemingway of Seattle, WA.

According to opensecrets.org, Hemingway has been quite the donor to Diane Feinstein, one of the major and most vocal opponents of the port deal.

Most likely it's just a coincidence. But I really don't think Democrats are doing ANYTHING to enhance security, especially vis-a-vis opposition to this deal.
posted by cell divide at 6:46 AM on March 10, 2006


just because Dubai gave up on the deal doesn't mean they won't retaliate.

Exactly. I certainly would consider it seriously if I were them. Nothing like being treated like a terrorist raghead to make you reconsider your purchasing policies.
posted by languagehat at 6:53 AM on March 10, 2006


OMG! DUBAI OWNS PART OF BOEING! WE'RE ALL GONNA DIE!!!!
posted by sourwookie at 6:55 AM on March 10, 2006


Sounds almost as serious as those Iraqi WMD's, sourwookie.
posted by telstar at 6:59 AM on March 10, 2006


What I find particularly ironic in this latest episode is that the fear mongering that the Bush administration has engaged in for the past 5 years is now coming back to haunt them. Why is this hurting Bush so much in the polls? Because the people, and Congress have largely bought into the "capture and kill the (Arab) terrorist" mantra that has been used to justify nearly every decision Bush has made. What (somewhat) surprises is me is how incredibly out of touch Bush-Cheney (alphabetic) are.
posted by bluesky43 at 6:59 AM on March 10, 2006


Also from the Seattle times...
posted by mischief at 7:01 AM on March 10, 2006


If the republicans stop this deal and continue to not adequately fund real security measures at ports

These are two different issues.

And what bluesky43 said--you reap what you sow, and Bush is getting the whirlwind for another three years.
posted by bardic at 7:13 AM on March 10, 2006


From the NYT article

A vast majority of containers that flow daily into the United States remain uninspected and vulnerable to security gaps at many points.

After how many billions spent in helping faith based organizations ? After how many billions dumped in homerland security ? Yet security people now exactly that carefully ispecting all the containers would significantly if not completely stop the trade and god forbid, earth would spin outside control !

It's not like non-deperible goods can wait 3 days , it's not like business can just expect 3 more days, it's not like business can't sustain differential labeling according to law !

Oohhh but we can intercept all the domestic communications because it has been done in World War 2 , but we can't stop the latest pallet from Ikea ! Rapture would ensue ! Poor Martha, she needs the shipment from Vietnam or she'll not sell her cock cozies !

*CRY* The poor business ! Poor Bendar ! Weeeeee ! *CRY* Why do you hate freedom of business so much ?
posted by elpapacito at 7:22 AM on March 10, 2006


It's really difficult to say whether the federal and local authorities couldn't have worked out an adequate security arrangement even with a Dubai-based company owning the ports.

Having said that, it seems to me that if this becomes a trend -- where foreign entities are discouraged from making direct investment in the US due to populist or xenphobic outrage (see China/Unocal deal) -- based on our debtor nation and status/huge deficits, this spells big trouble for the US economy in the future.

I am certainly no fan of the Bush Administration, and they got exactly the reaction that they deserved, but I do wonder if this is a harbinger of worse economic news to come.
posted by psmealey at 7:24 AM on March 10, 2006


The Seattle TImes link (thanks Mischief) makes it all very clear. Bush-Cheney are out of touch because they have dollar signs in the way -- the large deficit spending that is funding the Iraq/Afghanistan war and the large tax cuts to the (very) rich needs capital to keep the balance in order. And where is the capital investment coming from? Oil rich Arab nations -- to be distinguished of course from Terrorist Arab nations (oops, Bush forgot that subtlety in his fear mongering)
posted by bluesky43 at 7:29 AM on March 10, 2006


Why does Delmoy sound like every guy's ex wife?
posted by Postroad at 7:57 AM on March 10, 2006


sick of new posts especially follow up news posts to follow up news posts that were posted as a follow up to a news post
posted by The Jesse Helms at 8:09 AM on March 10, 2006


But I really don't think Democrats are doing ANYTHING to enhance security, especially vis-a-vis opposition to this deal.

You do recall that it was Republicans protesting the deal too, right?
posted by inigo2 at 8:10 AM on March 10, 2006


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