Over the weekend, it appears several parties in the Dubai Ports World controversy — Republican lawmakers, Republican White House, and the company itself — reached a cease-fire of sorts. The 45-day investigation the Bush administration decided not to do the first time around will happen after all.
The “breakthrough,” if we want to call it that, came over the weekend when the company itself “invited” the administration to perform the higher-scrutiny investigation. The idea, the New York Times reported, is that the administration-driven probe would assuage lawmakers and slow down any kind of legislative remedy to the controversy. To this extent, the “face-saving” deal is working — several key GOP lawmakers backed off some of their threats yesterday.
There are, however, two angles to consider. One is the fact that this adds a great deal of responsibility to the president personally.
The Dubai company seeking to take over some terminal operations at six American ports formally asked the Bush administration on Sunday to conduct a deeper investigation into security concerns surrounding the deal. The request will leave President Bush in the politically delicate position of having to personally approve or disapprove the takeover.
If the deal remains unpopular, Bush won’t be able to rely on the “out of the loop” defense. His signature, with no congressional input, will make this deal happen. Politically, that’s a real risk for the White House.
The other angle, as Judd at ThinkProgress noted, is that the “face-saving” deal itself is not quite the compromise it appears to be.
1. The deal would not actually be delayed. Dubai Ports World has just offered to alter its management structure until the review is completed. “The company said that during the renewed scrutiny, or until May 1, a London-based executive who is a British citizen would have authority over DP World’s U.S. operations. It pledged that Dubai executives would not control or influence company business in the U.S., but said it was entitled to all profits during the period.”
2. If the outcome is different, Dubai Ports World said it may sue. “In the legal papers sent to the White House, DP World said it would abide by the outcome of the lengthier review but indicated it could sue if the results were any different.”
3. The administration has already made up their mind. Unless Congress has a role, it’s meaningless. “[Sen. Chuck] Schumer said Congress should have a chance after the review to approve or reject the administration’s decision. ‘If the report is completed and kept secret and only given to the president, who has already come out for the deal, it will not reassure Americans,’ Schumer said.”
A few things to consider over the next 45 days.